Schedule 2 organizations are self-insured and the WSIB administers the payment of benefits. Each year, we announce a provisional administration rate that reflects the anticipated administration costs for the year for administering these benefits.
We're pleased to provide Schedule 2 organizations with details about their 2023 provisional administration rate along with an update on the latest forecast for their 2022 administration rate below. In the summer of 2023, we will announce what the actual 2022 administration rate was and provide an adjustment to reflect any differences between the actual and provisional rate.
You can view the FAQ below to learn more about the 2023 provisional administration rates and 2022 latest forecast. If you have any further questions about the 2023 provisional administration rate, please call the Employer Service Centre at 416-344-3646 or toll-free at 1-800-387-0750.
Provincially regulated organizations
The 2023 provisional administration rate for provincially regulated organizations is 18.3 per cent of expected benefit payments. This is a $6.8 million increase in total expenses and a $93.4 million increase in benefit payments from the 2022 provisional administration rate.
Summary of the costs used to determine the 2023 provisional administration rate
| Costs allocated to organizations | 2023 estimate ($000) |
|---|---|
|
WSIB administration |
56,882 |
|
Legislative obligations |
3,182 |
|
Ministry of Labour - prevention & Occupational Health and Safety Act * |
33,088 |
|
Other expenses collectively charged ** |
3,239 |
|
Total costs |
96,391 |
|
Total benefits |
525,558 |
|
Provisional administration rate (Costs/Benefits) x 100% |
18.3% |
* includes the Occupational Health & Safety Act (OHSA), Workplace Safety and Insurance Appeals Tribunal (WSIAT) costs and Ministry of Labour costs when applicable, among others.
** includes bankruptcies, net interest gain/loss, interest on delayed benefits, and benefit overpayments
Update on 2022 administration rate
The 2022 administration rate initially set at 20.7 per cent of expected benefit payments is anticipated to be 19.9 per cent at year-end. This percentage is also referred to as the latest forecast for provincially regulated organizations.
Federally regulated organizations
The 2023 provisional administration rate for federally regulated organizations is 12.0 per cent of expected benefit payments. This is a $0.3 million decrease in total expenses and a $2.3 million increase in benefit payments from the 2022 provisional administration rate.
Summary of the costs used to determine the 2023 provisional administration rate
| Costs allocated to organizations | 2023 estimate ($000) |
|---|---|
|
WSIB administration |
3,167 |
|
Legislative obligations |
177 |
|
Ministry of Labour - prevention & Occupational Health and Safety Act * |
0 |
|
Other expenses collectively charged ** |
180 |
|
Total costs |
3,524 |
|
Total benefits |
29,256 |
|
Provisional administration rate (Costs/Benefits) x 100% |
12.0% |
* includes the Occupational Health & Safety Act (OHSA), Workplace Safety and Insurance Appeals Tribunal (WSIAT) costs and Ministry of Labour costs when applicable, among others.
** includes bankruptcies, net interest gain/loss, interest on delayed benefits, and benefit overpayments.
Update on 2022 administration rate
The 2022 administration rate initially set at 14.3 per cent of expected benefit payments is anticipated to be 13.1 per cent at year-end. This percentage is also referred to as the latest forecast for federally regulated organizations.
Organizations covered under the Government Employees Compensation Act (GECA) administered by the Department of Employment and Social Development Canada (ESDC)
The 2023 provisional administration rate for organizations covered under the Government Employees Compensation Act is 12.0 per cent of expected benefit payments. This is a $1.1 million decrease in total expenses and a $2.4 million increase in benefit payments from the 2022 provisional administration rate.
Summary of the costs used to determine the 2023 provisional administration rate
| Costs allocated to organizations | 2023 estimate ($000) |
|---|---|
|
WSIB administration |
6,925 |
|
Legislative obligations |
387 |
|
Ministry of Labour - prevention & Occupational Health and Safety Act * |
0 |
|
Other expenses collectively charged ** |
346 |
|
Total costs |
7,658 |
|
Total benefits |
63,981 |
|
Provisional administration rate (Costs/Benefits) x 100% |
12.0% |
* includes the Occupational Health & Safety Act (OHSA), Workplace Safety and Insurance Appeals Tribunal (WSIAT) costs and Ministry of Labour costs when applicable, among others.
** includes net interest gain/loss, interest on delayed benefits, and benefit overpayments.
Update on 2022 administration rate
The 2022 administration rate initially set at 14.2 per cent of expected benefit payments is anticipated to be 13.1 per cent at year end. This percentage is also referred to as the latest forecast for GECA organizations.
FAQs
How do you determine the provisional rate for each group?
To calculate the administration fee for Schedule 2 organizations, we estimate the annual costs of running the Schedule 2 system at the beginning of each year. This is known as the provisional rate. There are two parts to the process of determining what rate we charge the Schedule 2 organizations:
- We determine the administrative expenses for Schedule 2 as a whole
- We then determine the Administration Rate for each organization group
You can see a breakdown of each of these steps in the document Schedule 2 - Understanding the basics.
How do you get from the provisional rate to the actual rate?
After we provide the organizations a provisional rate for the year, we wait until the actual experience is available for that year. At that point, we provide organizations with their actual rate based on final data from the previous year. You can view more information on the rate setting cycle here.
Can you provide an explanation of the factors that resulted in the calculation of the 2023 provisional administration rate?
The WSIB’s 2023 provisional administration expenses are expected to be slightly higher than in 2022 for Provincially regulated organizations and lower than in 2022 for Federally regulated and GECA organizations. The 2023 benefit payments are expected to be higher than in 2022 for all organizations. This is due to an increasing number of submitted claims and higher average claims costs expected in 2023. These updates result in lower 2023 provisional administration rates compared to the 2022 provisional administration rates for all organizations.
What is the reason for the latest forecast since you released the 2022 provisional administration rate
For the latest forecast of the 2022 admin rate, the administration expenses are higher than those set in the 2022 provisional rate except for GECA organizations. Benefits paid are higher for all organizations.
What happens if the actual rate for 2022 is different than the provisional rate originally released?
Depending on whether our estimates are over or under the actual costs, we either charge or credit organizations any difference between the provisional and actual administration rates as a one-time adjustment. This happens in August of the following year. For example, the 2022 actual rate will be released in August 2023 and the 2023 actual rate will be released in August 2024.
Key terms
Actual Administration Rate: The Actual Administration Rate is determined after the year ends, once the financial statement audit process is completed. An adjustment may be made to reflect differences between the Provisional Administration Rate that was billed to organizations and the Actual Administration Rate.
Administration Expenses: Schedule 2’s share of the WSIB’s administrative expenses is based on the latest budget for the administration of Schedule 2 claims.
Benefit Payments: Schedule 2 organizations are self-insured and are therefore liable to fund all benefit payments for their injured workers and the associated administrative costs.
Collectively Charged Expenses: There are collective expense items applicable to all Schedule 2 organizations such as interest on delayed payments, benefit overpayments and more.
Latest Forecast: A latest forecast of the Administration Rates is communicated along with the next year’s Provisional Administration Rates based on updated information.
Legislative Obligations: The WSIB includes legislative obligations when determining Schedule 2 rates.
This includes the Occupational Health and Safety Act (OHSA), Workplace Safety and Insurance Appeals Tribunal (WSIAT) costs and Ministry of Labour costs when applicable, among others.
Provisional Administration Rate: A Provisional Administration Rate for a year is determined before the start of the year. This rate is charged to Schedule 2 organizations based on their benefits paid on a monthly basis throughout the year.
Schedule 2 Administration Rate: The Schedule 2 Administration Rate is determined for the purpose of collecting the appropriate portion of administration expenses and collective items attributed to Schedule 2 organizations.