The WSIB has announced plans to issue surplus funds to eligible Schedule 1 businesses in February 2025. The surplus funds of approximately $2 billion represent an excess reserve earned by the WSIB’s insurance fund above and beyond their needed reserve due to strong operational, financial and investment management. This is the second time the surplus reserve funds have been distributed to Schedule 1 employers following legislative amendments finalized in 2021. The legislative revisions allow the WSIB to return excess funds to employers once the Board’s surplus reaches 125 per cent.
Schedule 1 businesses must meet all the following eligibility requirements to receive a rebate of surplus funds in February 2025:
- have an active account and premium payment obligations as of November 1, 2024
- had premium obligations in 2023
- have not been convicted of a Workplace Safety and Insurance Act or an Occupational Health and Safety Act offence in a proceeding under Part III of the Provincial Offences Act, in 2024 or in 2025 up to and including the date the WSIB issues a surplus rebate
- have not been convicted in more than one such proceeding under the Workplace Safety and Insurance Act, or have not been convicted in more than one such proceeding under the Occupational Health and Safety Act, between 2020 and 2025 up to and including the date the WSIB issues a surplus rebate
- have not had a traumatic workplace fatality attributed to the organization in 2024 or in 2025 up to and including the date the WSIB issues a surplus rebate, or have not had more than one traumatic workplace fatality attributed to the organization between 2020 and 2025, up to and including the date the WSIB issues a surplus rebate
- must not be affiliated through common ownership with a business that:
- is ineligible to receive a surplus rebate based on the convictions criteria outlined, and
- has a traumatic workplace fatality attributed to them between 2020 and 2025, up to and including the date the WSIB issues a surplus rebate
The first surplus rebate was issued to Schedule 1 employers in April 2022. Due to nature of the distribution, there is no guarantee of future surplus funds or any regular or expected rebate frequency.
We note that this surplus rebate distribution is distinct and unrelated to the WSIB’s experience rating, premium rate setting model and NEER/CAD-7 rebates received in prior years. Schedule 2 employers are not eligible for surplus rebates since they are self-insured and do not pay premiums into the insurance fund.
For FAQs, visit the WSIB website: https://www.wsib.ca/en/rebate
