3rd Session, 43rd Legislature
This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.
Bill 228
THE WORKERS COMPENSATION AMENDMENT ACT (DISTRIBUTION OF SURPLUS FUNDS)
| Bilingual version (PDF) | Explanatory Note |
(Assented to )
HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:
C.C.S.M. c. W200 amended
1 The Workers Compensation Act is amended by this Act.
2 The following is added after section 81:
Definition
81.0.1(1) In this section and in section 81.0.2, "funding ratio" means the ratio calculated by dividing the total assets of the board by the total liabilities of the board.
Board to calculate funding ratio annually
81.0.1(2) The board must calculate the funding ratio at least 90 days before it levies an assessment for a year under subsection 81(1).
Distribution when funding ratio exceeds 1.25
81.0.1(3) If the funding ratio exceeds 1.25, the board must distribute surplus funds in accordance with section 81.0.2 in such an amount that, after the distribution, the funding ratio is reduced to 1.15 or lower, but not lower than 1.0.
Discretionary distribution when funding ratio exceeds 1.15
81.0.1(4) If the funding ratio exceeds 1.15 but does not exceed 1.25, the board may distribute surplus funds in accordance with section 81.0.2, but must not distribute funds in such an amount that, after the distribution, the funding ratio is reduced to lower than 1.0.
Making of distribution
81.0.2(1) A distribution under section 81.0.1 must be made within 30 days after the board calculates the funding ratio and must be divided amongst Class E employers who paid their assessments in the year, in the proportionate manner determined by the board.
Manner of payment
81.0.2(2) The amount to be distributed to a particular employer may, in the board's discretion, be paid directly to the employer or credited to the employer's future assessments.
Coming into force
3 This Act comes into force on the day it receives royal assent.
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Explanatory Note The Workers Compensation Act is amended to require the Workers Compensation Board to distribute surplus funds to employers if the ratio of the board's assets to liabilities exceeds 1.25. The distribution must reduce the ratio to 1.15 or lower. At the board's discretion, a distribution may also be made when the ratio exceeds 1.15. In either case, the amount distributed must not reduce the ratio below 1.0. |