The Generals - Spring/Summer 2016 - (Page 41)

FEATURE Five Things YOU SHOULD KNOW ABOUT WSIB'S New Rate Framework By David Frame I f you manage your WSIB file, if the cost is a factor in your business environment and if you use experience rating to control costs or if you were expecting lower rates in the next few years, then keep reading because all the rules are changing and your performance now will determine your costs in the new Rate Framework system. In January 2019, the Rate Framework system will be implemented for all schedule 1 employers, which includes all construction employers. If you have kept up-to-date with your reporting and claim responsibilities and have been able to use experience rating (CAD 7) to manage claims and your costs, you are in for a surprise. The following is what you need to know and do now to be ready for the new world of the WSIB Rate Framework: 1. Your Current Rate Group and Experience Rating system will be gone: Most GCs are registered in rate #723 and pay $4.55 per hundred dollars of payroll. A new rate G-1 is proposed that includes both ICI and residential (non subtrade) vertical contractors. Most residential builders are now registered in rate #764 and pay double the ICI rate at $9.10. As a result, the new projected Class Premium Rate is $4.85. OGCA has been working with the WSIB to convince them that we must continue to have an ICI construction rate. The Board's own data supports our position that our risk profiles are very different. 2. Lost Time Injuries (LTIs) will not be included: The CAD-7 Experience Rating system will be eliminated and each employer will be individually rated based on their claims cost experience. The new system shifts from a prevention-focus retrospective experience rating to insurance-focused and cost driven. There will be a six-year window that will weight costs at 2/3 for the most recent three years and 1/3 for years four to six. Individual rates in 2019 will be calculated on your cost performance for 2012 to 2017. Your performance for the last four years is already determined, so it is vital that you focus on cost control moving forward. The current assessment system and experience rating system will continue through 2018, so you will be assessed under two very different systems. 3. Reduced Per Claim Limit for Small / Moderate sized employers: The WSIB has determined that the existing limit is overly burdensome for many Spring/Summer 2016 41

Table of Contents for the Digital Edition of The Generals - Spring/Summer 2016

Chairman’s Message
President’s Message
Government Relations Report
Events, Upcoming Events & Member Milestones
Following Their Footsteps: A Profile of OGCA Chairman Jason Ball
Meet the 2016 OGCA Board!
COR – The Game Changing Revenue Driver
PCL Raises the Roof on BMO Field
78th Annual AGM & Conference at the Four Seasons Hotel in Washington, D.C.
Investigative Solutions Network Inc. Provides Workplace Threat and Risk Assessment
New Technologies for Builders
How Lean Can Impact Construction
Five Things You Should Know about WSIB’s New Rate Framework
Index to Advertisers

The Generals - Spring/Summer 2016