Elimination of the Unfunded Liability Charge to Employers To Provide More Money for Jobs & a Strengthened Economy
Eliminating the WSIB’s Unfunded Liability
In 2011 the Workplace Safety and Insurance Board's (WSIB) unfunded liability stood at a record $14.2 billion.
In September 2018 the Ontario government announced the elimination of the unfunded liability, and that WSIB premium rates for employers would decrease by almost 30 per cent starting in January 2019.
This meant the 2019 average premium rate decreased from $2.35 to $1.65 on every $100 of insured payroll.
The reduction resulted in a $1.45 billion injection into the Ontario economy for increased investment and job creation.
The WSIB eliminated its unfunded liability in 2018, almost 10 years ahead of a legislated deadline of December 31, 2027.
More Money for Job Creation, New Technology, and Health & Safety Programs
Today, we are announcing the next development. The WSIB is eliminating the unfunded liability charge in January 2020, a move that will result in approximately $607 million being injected into the provincial economy. This money will be available for investment in jobs, technology and health & safety programs.
The unfunded liability charge helped pay down the WSIB's large unfunded liability on an accelerated timeline.
In total, the savings realized through elimination of the unfunded liability and the UFL charge adds $2 billion to the Ontario economy.
Elimination of the WSIB's Unfunded Liability Charge