The Workplace Safety and Insurance Board (WSIB) in Ontario has eliminated its Unfunded Liability (UFL), according to the Trillium Automobile Dealers Association (TADA).
The UFL, which had reached $14.2 billion, represents the “shortfall” between the money required to pay future benefits to workers “for all established claims,” and the money in the accident fund.
“For too long, a massive WSIB unfunded liability meant employers were paying artificially high premiums to fund a system that was chronically mismanaged over the years,” said Frank Notte, Director of Government Relations, in a TADA news release. “A fully funded WSIB means stability and lower premiums for the employers who fund the system, and peace of mind for injured workers who rely on benefits.”
The elimination of the UFL reduces the average WSIB premium rate for all sectors by nearly 30 per cent. Specific to Ontario’s automobile and truck dealerships, lower premiums should lead to an estimated savings of around $1.3 million for 2019. For the repair and service sectors, it means approximately $40 million per year in savings.
The announcement regarding the elimination of the UFL was made by Laurie Scott, Ontario’s Labour Minister.
