Summary#
This bill changes Newfoundland and Labrador’s workers’ compensation law. It adds a clear definition for temporary earnings loss benefits and updates how retirement lump‑sum payments are calculated for injured workers when they turn 65. The change applies back to January 1, 2019.
- Adds a definition of “temporary earnings loss benefits” (short‑term wage loss after a work injury) set by WorkplaceNL’s board policy.
- Sets a retirement lump‑sum at age 65 for workers on extended earnings loss benefits (long‑term wage loss) equal to 5% or 10% of certain benefits paid, plus interest.
- Counts all extended earnings loss benefits toward the lump‑sum base.
- Counts temporary earnings loss benefits only after the first 24 months toward the lump‑sum base.
- Uses a higher rate (10%) if the worker was in an employer‑sponsored pension plan at the time of injury; otherwise 5%.
- Applies to workers receiving extended earnings loss benefits on or after January 1, 2019.
What it means for you#
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Workers
- If you receive extended earnings loss benefits and turn 65, you would get a one‑time retirement payment.
- The amount is:
- 5% of your extended earnings loss benefits paid, plus interest; and
- If you had temporary earnings loss benefits for more than 24 months, 5% of the temporary benefits paid after the first 24 months, plus interest.
- If you were in an employer‑sponsored pension plan when injured, the rate is 10% instead of 5%.
- Temporary earnings loss benefits from the first 24 months do not count toward this retirement payment.
- This applies even if your benefits started in or after 2019, because the change is retroactive to January 1, 2019.
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Employers
- The law ties the definition of temporary earnings loss benefits to WorkplaceNL policy, which may make administration more consistent.
- Retirement lump‑sum costs for injured workers at age 65 are based on the rules above, including the 24‑month threshold for temporary benefits and the higher rate for workers with an employer pension plan.
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Families and caregivers
- If a family member on extended earnings loss benefits turns 65, they may receive a one‑time payment calculated under these rules, which could affect retirement planning.
Expenses#
No publicly available information.
Proponents' View#
- Clarifies what counts as temporary earnings loss benefits by linking it to WorkplaceNL policy, reducing confusion for workers and employers.
- Sets a clear, simple retirement lump‑sum formula with interest, so workers know what to expect at 65.
- Recognizes workers who were in employer‑sponsored pension plans by providing a higher percentage (10%).
- Limits counting temporary benefits to months after 24 months, which supporters may see as a balanced approach that focuses on longer‑term wage loss.
- Retroactive date (2019) ensures consistent treatment for recent and future cases.
Opponents' View#
- Excluding the first 24 months of temporary earnings loss benefits could lower retirement lump‑sums for many injured workers who did not receive more than two years of temporary benefits.
- Tying the higher rate to membership in an employer pension plan may feel unfair to workers without access to such plans.
- Making the definition of temporary earnings loss benefits depend on policy, not the law itself, could reduce transparency or make rules easier to change without legislative debate.
- Retroactive application to 2019 may create uncertainty for people who already planned around prior rules.