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Act Now - The Report of the WCB Legislative Review Panel to the

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While <strong>the</strong> <strong>Panel</strong> agrees that deducting statu<strong>to</strong>ry contributions makes sense, <strong>the</strong> <strong>Panel</strong> isconcerned that an injured worker is prevented from making contributions <strong>to</strong> <strong>the</strong> CanadaPension Plan while receiving compensation. In some cases, a long recovery time willsignificantly reduce <strong>the</strong> worker’s Canada Pension. This situation is governed by federallegislation and beyond <strong>the</strong> terms <strong>of</strong> reference <strong>of</strong> <strong>the</strong> <strong>Panel</strong>.<strong>The</strong> <strong>Panel</strong> is concerned that <strong>the</strong> net annual remuneration <strong>of</strong> seasonal workers and o<strong>the</strong>rworkers should reflect any Employment Insurance (EI) payments during <strong>the</strong> 12 monthsprevious <strong>to</strong> a work-related accident. Subsection 41(2)(b) provides that <strong>the</strong> <strong>WCB</strong> mayestimate net annual remuneration for a worker who has been with <strong>the</strong>ir employer for onlya short period <strong>of</strong> time, using an average <strong>of</strong> workers in similar positions over <strong>the</strong> previous12 months. This section is discretionary.<strong>The</strong> practice in o<strong>the</strong>r jurisdictions varies. When calculating net income, a minority <strong>of</strong>o<strong>the</strong>r jurisdictions include EI payments. Of those, <strong>the</strong> majority include EI payments onlywhen calculating longer term (over 12 <strong>to</strong> 26 weeks) financial compensation.<strong>The</strong> <strong>Panel</strong> appreciates that assessments have not been paid on EI payments. However,<strong>the</strong> <strong>Panel</strong> does not think <strong>the</strong>se circumstances are much different from those Subsection41(2)(b) is intended <strong>to</strong> cover.<strong>The</strong> <strong>Panel</strong> was also asked <strong>to</strong> consider a legislative change <strong>to</strong> Subsection 39(5), whichdescribes <strong>the</strong> annual deductions. Since this section was enacted, federal legislation haschanged. <strong>The</strong> <strong>Act</strong>s now refer <strong>to</strong> outdated federal legislation.Recommendations: 3.6.6 Net Annual Remuneration1. It is suggested <strong>the</strong> <strong>WCB</strong> Board <strong>of</strong> Direc<strong>to</strong>rs, through <strong>the</strong> Association <strong>of</strong> Workers’Compensation Boards <strong>of</strong> Canada, review <strong>the</strong> issue <strong>of</strong> contributions <strong>to</strong> <strong>the</strong> CanadaPension Plan by injured workers.<strong>WCB</strong> <strong>Legislative</strong> <strong>Review</strong> <strong>Panel</strong> <strong>Report</strong> Page 59 <strong>of</strong> 128December, 2001

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