08:16 AM EDT, 08/28/2024 (MT Newswires) -- Six overfunded workers' compensation boards (WCBs) across Canada are currently holding onto C$4.9 billion in excess funds that should be returned to small businesses, said the Canadian Federation of Independent Business (CFIB)'s latest research snapshot published Wednesday.

Boards in British Columbia (BC), Manitoba, Ontario, New Brunswick (NB), Prince Edward Island (OEI) and the Yukon are overfunded, meaning they exceeded their desired funding target, stated CFIB. Manitoba's board is the most overfunded at 160% when its own funding target is 130%.

Nine out of 12 boards now have rebate policies in place to return surplus funds to employers. CFIB estimates that returning excess WCB money to employers could provide a small business with five employees a rebate ranging from C$1,745 in Ontario to C$5,360 in NB.

In recent years, boards have distributed surplus funds to employers, with Manitoba returning C$118 million in 2024, PEI C$21 million in 2023, and Ontario $1.2 billion in 2022. Looking forward, Manitoba anticipates rebates to employers through 2026 to reduce the funding ratio to the funding target of 130%. PEI has yet to announce a 2024 rebate plan, despite being overfunded last year.

Ontario is the only province that legislates the return of WCB surplus funds to employers, including mandatory rebates when the Workplace Safety and Insurance Board (WSIB)'s funding level is at least 125%, pointed out CFIB. In April 2022, the WSIB distributed C$1.2 billion in surplus funds to almost 300,000 eligible Ontario businesses when the WSIB's funding level was within the discretionary range for surplus rebates allowed under the legislation (115%-124.99%).

To ensure fairness, consistency and certainty for employers, CFIB recommends that provincial and territorial governments:

-- Return surplus funds to employers or lower employer premiums where the funding ratio exceeds the board's funding target, with a stronger preference for a rebate to eligible employers.

-- Legislate the return of WCB surplus funds to eligible employers.

-- Implement mandatory distribution policies, so surplus funds are returned on a regular basis.

-- Enhance WCB transparency and accessibility by setting dates to publicly release board funding levels.