Stable funding in uncertain times
2020 was a tough year for all Albertans. It underscored the importance of funding a stable and reliable workers’ compensation system that protects the benefits and services injured workers and their employers rely on.
We ended the year fully funded at 120.7%. This number, within our targeted funding range of 114% to 128%, means we can fund both current and future claim costs.
In 2020, Alberta’s employers faced unprecedented challenges. In response, in March 2020 the Alberta government announced new measures to support private-sector employers during the COVID-19 pandemic. These measures included suspending premium invoicing and allowing private-sector employers to defer their premium payments until 2021.
In addition, our Board of Directors opted to continue using the Accident Fund to subsidize employer premium rates. As a result of this subsidy, employers did not bear the additional cost of funding the year’s $284 million premium rate deficit.
This approach ensured affordability for employers and ensures both workers and employers have long-term protection from the impact of workplace injuries and illnesses.