Why is the policy being reviewed?

    Policy 23-605 Experience Rating System is being reviewed to address: 

    •  Legislative Change  Bill 45, An Act Respecting the Firefighters' Compensation Act and the Workers' Compensation Act, increased the multiplier to calculate Maximum Annual Earnings from 1.5 to 1.6 times New Brunswick Industrial Aggregate Earnings (NBIAE). This calculation impacts the maximum claim cost used for experience rating.   
    •  Policreview cycle – Policy 23-605 Experience Rating System last full review was in 2013. 

    What is the nature of the revisions?

    The proposed revisions to Policy 23-605 Experience Rating System include: 

    • Adding the three-year average of assessment premiums to the requirement to participate in experience rating.  

    • A revised formula to determine the maximum cost per claim for experience rating.  That uses the average maximum assessable earnings (MAE) over the three-year exposure period to align maximum claim cost with the maximum annual earnings used to determine benefits and reported payroll allowing a smother transition as the MAE has changed from 1.5 to 1.6 times NBIAE. 

    • Rounding the maximum claim cost for experience rating to the nearest $5,000 to promote stability and decrease the likelihood of changing the maximum annually.