Discussion Paper – Calculation of Interest
Last April the Policy and Regulation Development Bureau of the Workers’ Compensation Board distributed a discussion paper on “Calculation of Interest” for stakeholder comment. At that time the Board was conducting a review of its policy to ensure that an appropriate rate of interest is provided on retroactive awards.
The Bureau has since become aware of a related issue concerning the period of time that interest may accrue, which has resulted in a revision to the discussion paper and the development of new options for consideration. These additional options are intended to provide the necessary balance between the potential for overcompensation when interest is paid on relatively old claims and the provision of an adequate rate of interest in situations where a worker experiences undue delay resulting in significant financial hardship.
The Bureau is circulating the revised paper as part of its consultation process.
The deadline for this second round of consultation was May 25, 2001.