Advanced program

A: You are a part of the advanced program if you had at least $21,000 in base premiums in your evaluation window. The maximum discount in the advanced program is 30 per cent and the maximum surcharge is 200 per cent.

Base premium = Assessable payroll reported by the employer/$100 x industry premium rate

Example:

• Three-year evaluation window: Claim records in 2019-2021
• Calculation year: 2022 (2023 rates calculated)
• Rate year: 2023

A:  The first step in determining your discount/surcharge is calculating your weighted loss ratio (WLR).

The WLR is the ratio of capped costs to base premiums, weighted by year. To recognize emerging trends and improved safety performance, more weight is applied to the most recent year in the evaluation window as follows:

The WLR is then used to calculate your base discount/surcharge. This is done by comparing your WLR to the industry WLR.

If your WLR is better than the industry, you could receive a discount. For every 3.33 per cent your WLR is better than the industry ratio, you could receive up to one per cent of discount.

Base discount = (Firm WLR – Industry WLR) / (Industry WLR)
                                    3.33%

If your WLR is worse than the industry ratio, you could receive a surcharge. For every 1.5 per cent worse than the industry, you could receive up to one per cent of surcharge.

Base surcharge = (Firm WLR – Industry WLR) / (Industry WLR)
                                    1.5%

Your base discount/surcharge is then adjusted by the eligibility factor and participation factor.

Eligibility factor: This provides opportunity for new employers with only one year of experience to receive a discount/surcharge. This factor is based on the number of consecutive years an employer has premiums in the evaluation window.

One year of premiums = 33 per cent eligibility factor
Two years of premiums = 67 per cent eligibility factor
Three years of premiums = 100 per cent eligibility factor

Participation factor: This accounts for the size of the business. The participation factor is based on base premiums in the three-year evaluation window. The higher the premiums, the more fully an employer participates in the program. Every employer starts with a base participation factor of 41.5 per cent and increases one per cent for every $1,500 in additional base premiums over $21,000.

For example: If you have $45,000 in base premiums, your participation factor is 41.5% + 16% = 57.5%.

Experience rating discount/surcharge calculation

• Eligibility factor x participation factor x base discount/surcharge = discount/surcharge

To be eligible for a discount or surcharge in the Advanced Program, employers must have premiums in the most recent year of the evaluation window. Employers who do not meet this criteria will pay the industry premium rate.

Calculating your firm’s net premium rate under the advanced program

Example of a discount

• Industry premium rate - firm's experience rate discount = firm's net premium rate

Example of a surcharge

• Industry premium rate + firm's experience rate surcharge = firm's net premium rate

A: The experience rating program uses three complete years of data when calculating discounts and surcharges, which means there is a one-year delay until a claim impacts your net premium rate. For example, claim costs charged in 2019 will impact your experience rating discount or surcharge in 2021, 2022 and 2023. This is because the calendar year of 2019 will be part of the evaluation window for 2021, 2022 and 2023 experience rating calculations.

A: The experience rating calculation in the advanced program uses capped claim costs instead of total costs. Claim costs are capped at the maximum assessable wage for each year. For example, if an individual claim had costs in 2018 of $100,000, it would be capped at the 2018 maximum assessable wage of $82,627 and the rate calculation would use this amount (not the $100,000) in the calculation of the employer’s experience rating.

A: Employers will not receive a discount if:

• A fatality has occurred in the current or previous year, or
• They have been convicted of a criminal offence under Section 217.1 of the Criminal Code of Canada.

A: In the advanced program, reducing claim costs is the best way to influence your discount or surcharge. Preventing injuries and having return to work programs can help lower claims costs. For information on safety training and programs, please visit WorkSafe Saskatchewan’s website at worksafesask.ca.

A: Effective for 2017 rates, employers who move to the advanced program from the standard program will maintain their discount or pay at the industry premium rate until a new claim enters the evaluation window. This is intended to ease the transition from a frequency-based standard program to a cost-based advanced program.

Example

A business in the standard program with zero time-loss claims in the evaluation window for 2019, 2020 and 2021 would receive a discount of 25 per cent on their 2023 net premium rate. If in the following year the business has base premiums above $21,000, it is now part of the advanced program for 2024. If there were no new claims in the evaluation window of 2019, 2020 and 2021 for their rate in 2024, the business would maintain their discount of 25 per cent. However, if there was a claim in 2022, their experience rate discount or surcharge would be calculated using the advanced program parameters.

A: A WCB online account provides access to claims reports, cost statements, rate statements and much more.