An Act to Amend the Workers' Compensation Act

Summary#

This bill changes how injured workers in the Northwest Territories are paid after a work injury or disease. It replaces “pensions” with two kinds of benefits: a one‑time payment for the permanent loss itself, and a monthly payment to cover lost earnings after recovery has levelled off. The goal appears to be to better match payments to a worker’s real loss of earnings and to simplify and modernize terms.

Key changes:

• Defines “disability” (before full recovery) and “impairment” (permanent loss after maximum medical recovery).
• Creates a non‑economic loss benefit: a lump sum based on the worker’s percentage impairment multiplied by the Year’s Maximum Insurable Remuneration (the annual wage cap set each year).
• Creates an economic loss benefit: a monthly payment equal to 90% of the worker’s loss of earning capacity due to impairment, calculated after maximum medical recovery.
• Counts half of any Canada Pension Plan or Quebec Pension Plan disability payment (for the same injury/disease) as earnings in the calculation.
• Ends the economic loss benefit when the worker has no loss of earning capacity or, at the latest, at the minimum Old Age Security eligibility age (with up to 24 months extension if the worker would have retired later).
• Adds a retirement benefit equal to 10% of each economic loss payment, paid at retirement age as a lump sum (if small) or used to buy an annuity (if large).
• Requires benefit reviews at 2 and 5 years; allows reviews if circumstances change; allows suspension/termination for fraud or wilful non‑compliance.
• Limits earning‑capacity estimates to the worker’s own municipality or unincorporated community (unless unreasonable).
• Replaces “pension” wording with “monthly/periodic payment” for survivor benefits; updates related laws and allows advances of up to 12 months of payments.
• Keeps existing injuries/diseases before the change under the old law.

What it means for you#

• Workers with permanent impairment after a work injury or disease

  • You may get:
    • A one‑time non‑economic loss payment based on the percentage of permanent impairment (using a medical rating schedule set by policy).
    • A monthly economic loss payment equal to 90% of your impairment‑related loss of earning capacity, calculated after you reach maximum medical recovery.
  • You must report any material change in your earnings while receiving economic loss payments.
  • Your earning‑capacity estimate will usually be based on jobs and wages in your own community.
  • Half of any CPP/QPP disability payment for the same condition will be treated as if it were wages when calculating your monthly amount.
  • Your monthly economic loss benefit will generally stop at the minimum Old Age Security age, unless extended for up to 24 months if you would have retired later.
  • You can ask for a review of your impairment rating (for the lump sum) and of your monthly amount if your condition or earnings change. The Commission will also review at 2 and 5 years.

• Older workers nearing retirement

  • Monthly economic loss payments end around the Old Age Security start age, with a possible extension of up to 24 months if you would have retired later.
  • You will receive a retirement benefit equal to 10% of each monthly economic loss payment you received, adjusted for cost of living, paid at retirement age as a lump sum or put into an annuity if large.

• Workers receiving CPP/QPP disability

  • Half of your CPP/QPP disability amount (for the same injury/disease) will reduce your calculated loss of earning capacity because it is counted as earnings.

• Seasonal or part‑year workers

  • Your “annual remuneration” for benefit calculations during your season/contract will be the higher of: your season‑rate annualized, or the standard rule, for the period your job would have continued but for the injury, disease, or deterioration.

• Survivors and beneficiaries

  • References to survivor “pensions” are changed to “periodic payments.” The bill does not change the listed recipients.
  • The Commission can terminate death‑related payments if it finds fraud or that the loss was not related to the work injury/disease.

• All claimants

  • You can request an advance of up to 12 months of payments, which will be deducted from future payments.
  • Payment frequency can be adjusted with your written consent, after an advance, or during declared emergencies.
  • If medical opinions conflict, the Commission’s medical advisor must contact your health‑care provider to try to resolve it.
  • Compensation for disability (before full recovery) is paid only for days you would normally have worked.

• People with older claims

  • Injuries, diseases, or deaths that happened before the new benefit sections take effect stay under the old law, unless a later law clearly changes them.

Expenses#

No publicly available information.

• The bill changes how benefits are calculated and paid (lump sums, monthly payments, retirement benefit, reviews), but no fiscal note or cost estimate is provided in the materials supplied.

Proponents' View#

• The bill appears intended to modernize the system by separating permanent loss (non‑economic) from loss of earnings (economic), which could make payments clearer and more aligned with actual impacts.
• Linking the monthly benefit to post‑recovery earning capacity and the local job market could be seen as fairer and more accurate.
• Regular reviews at 2 and 5 years, and upon material change, could keep payments in line with a worker’s real situation.
• Counting part of CPP/QPP disability benefits may prevent double‑counting public supports.
• The retirement benefit (10% of monthly economic loss payments) could help replace lost retirement savings when a worker cannot work due to impairment.
• Allowing advances and flexible payment frequencies, especially during emergencies, could improve access to funds when needed.

Opponents' View#

• One concern is that ending monthly economic loss payments at the Old Age Security minimum age (with only up to a 24‑month extension) may leave some older injured workers with lower income even if they still face work‑related limitations.
• Counting half of CPP/QPP disability payments as earnings reduces the monthly economic loss benefit; some may view this as a clawback.
• Limiting earning‑capacity estimates to the worker’s own community may raise or lower benefits depending on local wages and job opportunities; the bill does not explain how exceptions will be applied.
• The non‑economic lump sum depends on an impairment rating schedule set by policy (not detailed in the bill), so final amounts are unclear here.
• More reviews, and a duty to report earnings changes, add administrative steps and the risk of suspension for wilful non‑compliance.
• The rule that disability compensation is paid only for days normally worked may reduce payments for people with irregular or casual schedules.
• Unclaimed retirement benefits are forfeited after seven years, which could disadvantage families if claims are delayed.