Document name

Interest on Benefits Accruing from Successful Appeals

Document number

PRO 03/2023

POL 03/2023, Interest on Benefits Accruing from Successful Claim Appeals, establishes guidelines for issuing interest on successful claim appeal decisions.

1.  When is interest on a successful claim appeal decision payable?
   1. If a successful appeal decision for a worker or their dependant is delayed beyond the timeframes noted in POL 03/2023, Appeals/Board Appeal Tribunal will approve interest on the benefits resulting from the appeal decision. 
2. When is interest on a successful claim appeal decision not payable?
   1. Interest will not be payable when:
      1. An employer continues to pay a worker’s salary (i.e., employer is the payee).
      2. There are delays caused by the worker, their representative, or the Office of the Workers’ Advocate.
      3. There are no earnings loss benefits payable as a result of a successful appeal. 
3. Which departments are involved in providing interest payments to customers?
   1. In order to complete the Interest from Successful Appeals (ISA) process within the WCB’s claims management system and issue interest payments to customers, approval will be completed by each department as follows:
      1. Appeals/Board Services.
      2. Operations.
      3. Financial Services.

Appeals/Board Services

4. Appeals or Board Services staff will initiate the ISA process and are responsible for documenting the following information:
   1. The calendar date on which the appeal is received (i.e., the date being used to assess interest eligibility). 
   2. To whom interest is payable (i.e., worker, worker’s estate, dependent spouse, or other dependants).
   3. The start date on which interest begins to be payable.
   4. Any periods of time/date range (e.g., December 1st to December 22nd) that interest is not payable due to delays on the part of the worker, their representative, or the Office of the Workers’ Advocate (OWA). 
      1. Appeals or Board Services staff will ensure supporting rationale is provided and communicated when a period of time is not payable. 
5. Where there is missing or insufficient information on an appeal request, Appeals or Board Services staff may use the date an appeal is registered for determining interest eligibility. When interest is assessed using the appeal registered date, Appeals or Board Services staff will ensure that supporting rationale is provided and communicated. 
6. Once Appeals or Board Services staff have completed their portion of the ISA process, a task will be automatically sent to Operations staff to complete the next step.

Operations

7. Operations staff will review the appeal decision and complete their portion of the ISA process to determine if payment is required as a result of an appeal decision. 
   1. Where interest is payable, a task will automatically be sent to Operations staff to calculate payment and document the following information:
      1. The end date to which interest is payable (i.e., the date that WCB issues the earnings loss benefits). 
      2. The periods of time/date range that interest is not payable as directed by Appeals/Board Services.  
      3. The amount of earnings loss benefits payable.
   2. Where interest is not payable, Operations staff will close the task and the ISA process will end. 
8. When interest is calculated, Operations staff will complete their portion of the ISA process and a task will automatically be sent to Financial Services to complete the task process and issue the interest payment. 

Financial Services

9. To complete the ISA process, Finance staff will calculate and document the following information: 
   1. The rate of interest on the date the WCB issues the interest payment.
   2. The number of days the WCB will pay interest.
   3. The periods of time/date range that interest is not payable. 
   4. The amount of interest payable.
10. Once completed, Finance staff will issue the interest payment to the assigned payee and provide written details of the interest calculation, including the information above.

Other

11. Are costs associated with interest payments charged to the employer?
    1.  Claims costs resulting from interest payments are considered an administrative expense and are not charged to the employer. Administrative expenses form part of the WCB’s overall claim expenses.