Diverting Compensation Benefits Policy 21-219 | Effective Date: November 1, 2021

Purpose

The purpose of this policy is to communicate WorkSafeNB’s guidelines for diverting compensation benefits to another individual or agency.

Scope

This policy applies to injured workers, surviving spouses and dependants whose benefits are to be diverted.

Policy 

When entitled, WorkSafeNB pays compensation benefits directly to injured workers, surviving spouses and/or dependants.

 WorkSafeNB may divert payments, in whole or in part, when:

• The injured worker, surviving spouse, or dependant authorizes the assignment;
• There is a court order;
• Required under other legislation;
• The injured worker becomes incarcerated; or
• A trustee is appointed.

Interpretation

Written Authorization

1. An injured worker, surviving spouse, or dependant may request WorkSafeNB to divert all, or part of, the loss of earnings benefits to another individual.Upon written request or consent of the worker, surviving spouse, or dependant, WorkSafeNB diverts benefits for repayment of debts to other provincial and/or federal government agencies.

Court Orders 

2. When ordered by the courts, WorkSafeNB is required to divert compensation payments, in whole or in part, to the parties involved in the court order. WorkSafeNB notifies the injured worker, surviving spouse, or dependant, before diverting the benefits. 

 Requirement Under Other Legislation

3. WorkSafeNB diverts injured workers’, surviving spouses’, or dependants’ benefits to another organization when requested to do so under other legislation.

  Incarceration

4. When an injured worker becomes incarcerated, WorkSafeNB uses Policy 21-214 Determining Continued Eligibility for Loss of Earnings Benefits to determine if the injured worker remains entitled to compensation benefits. 

5. If the injured worker remains entitled to compensation benefits, WorkSafeNB may divert an incarcerated injured worker’s loss of earnings benefits, to a spouse or a dependant, to maintain the same level of support provided before the incarceration.

6. WorkSafeNB communicates the decision to the incarcerated injured worker before payments are diverted, suspended or terminated. 

 Trustees

7. WorkSafeNB diverts benefits when directed by an authorized representative such as a trustee or an individual granted power of attorney.

8.  If there is no trustee and the injured worker, surviving spouse, or dependant is incapable of managing the payments, or the benefit recipient is a minor, WorkSafeNB may divert benefits to any individual it determines best qualified to administer the payments.

9.  WorkSafeNB may appoint the Office of the Public Trustee as a person best qualified to have benefit payments made to it on behalf of an incompetent injured worker, dependent spouse, child or other dependant provided a court order is obtained.