Yukon governments to experience biggest increase in workers’ compensation board rates in 2022
Yukon employers shouldn’t expect to see many changes in their workers’ compensation board rates next year.
The Yukon Workers’ Compensation Health and Safety Board announced industry classification and rating rates for 2022 at its annual general briefing on Wednesday.
The largest increase will go to governments – with rates for this group rising 6.3%.
Kurt Dieckmann, CEO of the board, says this increase in the government group – which includes the territorial government, as well as First Nations and municipal governments – can be attributed to invisible injuries in the workplace.
“Ultimately it comes down to the increase in psychological injuries and the cost of those claims is considerably higher than the cost of physical injuries,” he said at the meeting.
Meanwhile, Resources & Transportation Low will see the biggest rate cut next year, dropping 4.7%.
But overall, the rates that employers will pay won’t change too much.
Board chairman Mark Pike said the stability reflects safety and return-to-work efforts in Yukon workplaces as well as the board’s heavily funded position late last year, despite the pandemic .
“The COVID pandemic shows why it is so important to keep our target range at a fully funded position,” Pike said.
The Board Funding Ratio is designed to keep employer contribution rates stable and to protect the fund against catastrophic workplace events and fluctuations in global markets. It is calculated by dividing the total of its assets by the total of the liabilities.
The funded position increased from 141% in 2019 to 132% last year, approaching its target range.
The board says that as the funding position approaches target levels, the rates move closer to the actual costs of the compensation and occupational health and safety systems.
The 2022 contribution rate and sector classifications can be found here.