The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
A steep decline in investment revenue requires the Manitoba WCB to set the 2004 average assessment rate at $1.70 per $100 of assessable payroll, a general rate increase of 9%. "Because there are only two revenue streams for the WCB, employer premiums and investment returns, the difference needs to be made up from the employer side," explained Doug Sexsmith, WCB CEO. "It's important to say that, at the same time, Manitoba's WCB rates are the lowest among Canadian provinces and will remain so." The assessment rates for individual firms are related to their claims cost experience and their industry's claims cost experience. Accordingly a firm's rates may still decline, or increase by more than 9% or less than 9%. Just three years ago, in 2000, investment income totalled $70 million. The WCB is projecting about $20 million of investment revenue this year, a drop of $50 million over that three year span. Employer premiums have risen only moderately over that same time period creating a revenue shortfall for the WCB. In the year 2000, investment revenue accounted for 34% of WCB income. This year, in contrast, investment revenue is forecast to make up only 11% of WCB revenue. Also, at the peak of investment returns, in the late 1990s, employers received rate reductions of 33% which were reflective of the market conditions at those times. "A financially sound competitively priced WCB, offering comprehensive services to injured and ill workers, continues to be a Manitoba business advantage," said Sexsmith. The WCB insures about 70% of the workers in Manitoba, employed by 24,500 firms.
