Things to consider before voting for the WCB’s Industry Custom Pricing
A number of industries in Alberta will be voting on Monday, September 15th on whether to join a program the Workers’ Compensation Board calls Industry Custom Pricing or ICP. The WCB describes it as “an optional program that empowers industries to customize various features of their pricing program, giving them greater control over the premiums they pay.”
In effect, the ICP program offers industry members lower premium costs in return for giving up the option for cost relief in certain cases (the Cost Relief Option), or for allowing the WCB to modify the rate-setting calculations for that industry (the Experience Rating Option). There’s a good BCL overview of this program with more background and some common questions here.
In a nutshell, all the members of a given industry group get to vote on whether to become part of the ICP program, and if companies that represent more than 50% of the total assessable earnings in that industry vote in favour, then every member of that industry also gets included in the program, regardless of how they voted. It’s also important to note that even if you have already voted, you have the option to change your vote up until the votes are closed.
In most cases, industries will remain covered by the program for five years, but if enough members of that industry vote that they want to be re-polled, the WCB will usually allow for a re-vote in three or four years after the initial vote instead.
The re-polling schedule for different industries is here. Some industries won’t be re-polled (unless there is a majority vote to do so) until 2027 or even 2029, but some are up this year — including telecommunications, natural gas and electric utilities, the trucking industry, the bus industry and the taxi cab business. Those that are up for re-polling next year include universities, private schools, libraries and museums, health-care services and play schools.
What to keep in mind
According to the WCB, the intent of the ICP program is to “strengthen accountability by more closely reflecting individual claims performance.” Joining the program can work in your favour if your accident or injury record is better than most of the other employers in the industry, with respect to the number of WCB claims you have and the costs of those claims. However, it’s worth remembering that a string of unexpected claims can change things dramatically.
In particular, giving up cost relief for the aggravation of a pre-existing condition will increase your WCB premiums, since claim costs for this kind of injury will generally be higher. Under cost relief, the increased claim costs related to the effects of the aggravation of a pre-existing injury are removed from an employer’s account, but if an industry gives up that ability then employers will be assessed with all of those related costs, even though they are non-compensable.
The decision on whether to vote for or against joining the ICP program is complicated, with numerous benefits and drawbacks. The team at BCL can help you understand ICP and what it means for your organization. We can take a look at your operations, workforce, claims history and safety record, then advise you of the potential impact that participating in ICP could have on your WCB premiums now and in the future. We will help you make an informed decision that is right for you!
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