Report identifies six overfunded WCBs but focuses on WorkSafeBC’s $2B surplus
In a new report, the Canadian Federation of Independent Business (CFIB) calls attention to what it describes as excessive surpluses held by several workers' compensation boards across Canada, focusing particularly on WorkSafeBC. The CFIB argues that these surpluses should be returned to employers through direct rebates, a move they say would provide much-needed financial relief to small businesses struggling in a challenging economic environment.
Overfunded boards and employer rebates
The CFIB’s report highlights that six workers' compensation boards in Canada are currently overfunded, with five of these boards also exceeding their funding targets last year. Jairo Yunis, director for British Columbia and Western economic policy at CFIB, states that WorkSafeBC is among the most significantly overfunded boards. “WorkSafeBC is sitting on a $2 billion employer-funded surplus that it refuses to return to struggling small businesses,” Yunis says. He emphasizes that WorkSafeBC’s funding level, currently at 142% of its target, has consistently exceeded its own benchmarks.
“Despite being 12% over its target of 130%, WorkSafeBC has not issued rebates to employers, unlike other provinces that return excess funds to businesses,” Yunis adds. The CFIB report argues that if all overfunded boards provided rebates, small businesses and employers could receive nearly a $5 billion boost across the country.
WorkSafeBC’s financial strategy
WorkSafeBC, however, presents a different view on the use of its surplus. Craig Fitzsimmons, director of government and media relations at WorkSafeBC, says the organization’s strong financial position allows it to keep the average base premium rate below the average cost of claims. “The preliminary average base rate of 1.55% for 2025 is less than the expected cost rate of 1.78%,” Fitzsimmons notes. He adds that from 2019 to 2025, WorkSafeBC projects that $2.5 billion of surplus funds will have been used to keep employer rates below the cost of claims.
“In other words, WorkSafeBC is already returning surplus funds to employers by keeping rates lower than the cost to fund the system,” Fitzsimmons argues. He points out that without the surplus funds, the average premium rate would need to increase to match the average cost rate, which would mean higher costs for employers.
A question of financial priorities
The CFIB, however, remains unconvinced by WorkSafeBC’s approach. Yunis suggests that while maintaining lower rates is beneficial, it does not preclude the possibility of issuing rebates. “There is nothing that excludes both possibilities of maintaining rate stability and issuing rebates,” he asserts.
Fitzsimmons counters by highlighting the recent reduction in WorkSafeBC’s surplus and funding levels. “At the end of 2021, the funding level was 155%, with a surplus of $3.5 billion. By the end of 2023, this decreased to 142%, equating to a surplus of $2.1 billion,” he says. Fitzsimmons emphasizes this decline shows a responsible approach to managing the fund while continuing to support employers through lower rates.
Impact on small businesses
Both parties agree on the need to support small businesses, but they differ on how best to achieve this goal. Yunis argues direct rebates would provide immediate financial relief to businesses facing high interest rates, reduced consumer spending, and rising costs. “A WorkSafeBC rebate can help businesses increase wages, pay down debt, invest in productivity tools, or even improve workplace safety measures,” he says. He adds that the current economic climate makes it imperative to consider more direct forms of financial support for small businesses.
Fitzsimmons maintains that WorkSafeBC’s current strategy is already benefiting employers by keeping premium rates low. “The average base premium rate in British Columbia for 2025 will be lower than it was a decade ago, and it has remained flat since 2018,” he points out. Fitzsimmons argues that this stability in rates is a form of financial support that benefits all employers consistently.
As the debate over WorkSafeBC’s surplus continues, both the CFIB and WorkSafeBC remain firm in their positions. The CFIB is pushing for a policy change that would see more direct financial returns to employers, like what Ontario’s WSIB has done, while WorkSafeBC insists that its current approach provides a balanced and sustainable way to manage employer costs.
