The WCB uses an employer's actual claims costs as a part of the calculations used to establish assessment rates. This "experience-based" approach means that the accident record and cost experience of an employer has an impact on the employer's assessment rate. In the interest of fairness, some claims costs are not directly included in the individual employer's cost experience but instead are shared by a larger group of employers or transferred to another employer. When a claim cost is moved from the accident employer to a shared cost pool it is called cost relief. When it is moved from one employer to another, it is called a cost transfer.
The Workers Compensation Act (the Act) provides for cost relief/cost transfer in a number of circumstances. It also establishes a fund to apportion these pooled costs among employers. This policy describes the circumstances under which cost relief/cost transfer is provided to eligible employers, and how those relieved costs are subsequently shared by other employers or groups of employers through the assessment rate-setting process.