Return Workers Compensation Surplus to Employers

Summary#

This bill changes Manitoba’s Workers Compensation Act to set clear rules for when extra money held by the Workers Compensation Board (WCB) must be returned to employers. It defines a “funding ratio” (money the WCB has compared to what it owes) and ties surplus payouts to that ratio. It takes effect on the day it received royal assent.

• The WCB must calculate its funding ratio at least 90 days before setting employer assessments (premiums) each year.
• If the ratio is above 1.25, the WCB must pay out enough surplus to bring it down to between 1.15 and 1.0.
• If the ratio is above 1.15 but not higher than 1.25, the WCB may choose to pay out some surplus but cannot go below 1.0.
• Surplus payments go to Class E employers who paid their assessments that year, split in a proportion the WCB decides.
• The WCB must make any required payout within 30 days after calculating the ratio, either as a cash payment or as a credit toward future assessments.

What it means for you#

• Employers (Class E)

  • If you paid WCB assessments in a year when the WCB is funded well above target, you may get a refund or a credit.
  • When the funding ratio is over 1.25, a payout is required. When it is between 1.15 and 1.25, a payout is optional.
  • Your share will be based on a proportional method the WCB sets. The bill does not specify the exact formula.
  • The WCB can send you a payment or apply a credit to lower what you owe next time.
  • Payouts, if any, must be issued within 30 days after the WCB completes its annual funding check.

• Workers

  • No change to injury benefits or coverage rules is included in this bill.
  • The bill only affects how surplus employer-paid funds are returned to employers.

• General public and taxpayers

  • This deals with WCB funds (built from employer assessments), not general tax revenue.
  • No direct changes to taxes or public services are included.

Expenses#

Estimated impact on government: no direct cost; shifts WCB surplus funds to employer refunds or credits in certain years.

• When the WCB’s funding ratio is high, money moves from WCB reserves to eligible employers.
• In years when the ratio is lower, no payout happens.
• No publicly available information on specific dollar amounts.

Proponents' View#

• Returns excess funds to employers when the WCB is more than fully funded, which they say is fair.
• Sets clear, predictable triggers so the WCB does not hold more money than needed.
• Can help businesses manage costs through refunds or credits, especially in strong funding years.
• Keeps the WCB safely funded (cannot drop below a 1.0 ratio) while sharing surpluses.

Opponents' View#

• Paying out surpluses could leave the WCB with smaller cushions for downturns, which might pressure future premiums.
• Benefits flow only to employers, not to injured workers or prevention programs.
• The bill leaves the exact split “as determined by the board,” which some may see as lacking clarity for employers.
• Frequent payouts could create year‑to‑year swings, making budgeting harder for some employers and for the WCB.