Section #: 
Effective date: 
Monday, May 1, 1995
Last update: 
Thursday, December 1, 2005

Policy effective to December 31, 2005

Policy Purpose

The WCB has, over recent years, been using 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. When a claim cost is transferred from the accident employer to a shared cost pool it is called cost relief. When it transferred from one employer to another, it is called a cost transfer.

The Workers Compensation Act provides for cost relief 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 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.

This policy does not apply to employers covered under The Government Employees Compensation Act unless provided by separate agreement.

The Schedules form an integral part of this policy.