The Generals - Spring/Summer 2016 - (Page 41)
YOU SHOULD KNOW
New Rate Framework
By David Frame
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
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
3. Reduced Per Claim Limit for Small / Moderate
The WSIB has determined that the existing limit is overly burdensome for many
Table of Contents for the Digital Edition of The Generals - Spring/Summer 2016
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