WorkSafeNB announced today that the 2020 assessment rate under the Firefighters’ Compensation Act (FC Act) will decrease from $515 per firefighter to $465.
The rate, effective January 1, is designed to cover continuing claim costs while reducing the unfunded liability. An unfunded liability means the fund does not have sufficient funds set aside to meet its debt obligations (current and future claims costs).
When calculating the rate, WorkSafeNB must consider:
Since the FC Act and its Disability Fund were established in 2009 the funding status has steadily improved. A fully-funded status ensures the future security of benefits for New Brunswick’s firefighters and their dependants.
The table below shows how the 2020 rate was calculated:
|
2020 Assessment Rate for Firefighters |
|
|
Forecasted 2020 claim cost including WorkSafeNB administration costs |
$1,537,000 |
|
2020 portion of unfunded liabilities |
$380,000 |
|
Total annual costs |
$1,917,000 |
|
Total number of firefighters |
4,112 |
|
Annual cost per firefighter |
$465 |
WorkSafeNB is responsible for administering the FC Act. This includes the payment of benefits to firefighters or former firefighters and dependants, and levying and collecting assessments from municipalities, rural communities, and local service districts.