The Workers Compensation Board of Prince Edward Island today released its Annual Report for year 1998.
In commenting on the results for 1998, Board of Directors Chair Hon. James M. Lee noted the positive results achieved in the workplace in 1998 where over 60% of injured workers were able to return to their jobs within two weeks and 44.6% in one week or less. "As we move toward the 50th Anniversary of the Workers Compensation Board this July," said Mr. Lee, "we're working hard to place the emphasis where it should be, on the prevention of accidents which can cause so much distress to workers and their families, and ultimately to employers and the economy of this province."
An important part of WCB's accident prevention campaign in 1998 was the work of its Health and Safety Division. The Health and Safety Division performed 1742 inspections at Island work sites, an average of about 7 inspections every work-day of the year. These visits included regular inspections, follow-ups, accident investigations, health and safety training, hygiene assessment and other efforts intended to prevent work related injury.
Of the $12.8 million in claims payments paid out by WCB in 1998, 70% went to compensation for injured workers: (53% to extended earnings loss, 17% to temporary earnings loss,) 17% to healthcare, and 2% to rehabilitation. Administration costs declined from 14.4% of total expenditures in 1997 to 11.1 last year.
Over half of the 2,027 time loss claims filed in 1998 involved injuries to the back (32.3%) or hand, wrist and fingers (19.1%). Sprains and strains accounted for 48.9% or almost one half of temporary earnings loss claims.
In 1998, actuarial adjustments were made to reflect the real cost of future long-term disability awards, an item which had not been properly accounted for in the financial records since the new Act came into effect Jan. 1, 1995. This resulted in a restatement of the results for 1995-1997, effectively a negative adjustment of $9.5 million. Also resulting from the actuarial changes attributable to prior years but included in fiscal 1998 results, WCB's unfunded liability now stands at $28.1 million, reducing the funded portion to 66% from the 75% reported in 1997.
Due to the changes in actuarial assumptions in 1998, together with its regular financial transactions for the fiscal year, WCB had an excess of expenditures over revenues of $1,965,231. The Board realized a return of 10.4% on its investments. The average assessment rate payable by employers in 1999 stands at $1.98 per $100 of payroll, compared to $1.97 for 1998.
Workers Compensation Board has recently undergone three major reviews of its legislation and operations. The report and recommendations of the Legislative Review Committee have already been tabled with the Legislative Assembly. The Review Committee on the Occupational Health and Safety Act (MacCormac) will be submitting their recommendations to the Minister later this summer. A separate Operational Review has also been undertaken and this report is under active review. Said CEO Phil MacDougall, "we welcomed the opportunity to have WCB operations assessed objectively from top to bottom by outside experts, and we expect the recommendations to make us a lot more sensitive to the service delivery needs of our claimants as well as more efficient as we enter our second half century."