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The Impact of the Unfunded Liability on Injured Workers
The Impact of WSIB’s Unfunded Liability on Injured Workers
The WSIB claims to be working hard to eliminate its unfunded liability. But, over the last few years, injured workers and advocates have witnessed exactly what that means for those Ontarians who are dependent on benefits. Many injured workers’ experiences reveal that the WSIB is saving money by providing fewer benefits to injured workers.
But, while the WSIB rebuilds its own financial security, and continues to pay its Executives large salaries, its tactics push thousands of people into poverty each year.
In fact, a 2015 study found that 46% of injured workers with a permanent disability were at or near the poverty line. The poverty line for Ontario is just over $20,000 per year. Of those, 9% lived in deep poverty. Additionally, 38% were unable to return to employment since their workplace injury, yet the WSIB still cut their benefits.
Additionally, when the WSIB cuts benefits, the costs of the workers’ injuries get shifted to our public systems.
The WSIB is funded exclusively through employer-paid premiums and its own investments. But massive cuts to worker benefits force injured workers to seek assistance from public sources. Every year, thousands of injured workers have no choice but to access tax-payer funded services like Employment Insurance (EI), Ontario Works (OW), the Ontario Disability Support Program (ODSP), and Canada Pension Plan (CPP) Disability.
This has an impact on other systems too. Insurance – private or group – now picks up the tab for health care measures which in turn can affect premium prices for all participants. Other costs might get shifted to OHIP which could also have ramifications down the road.
In addition, injured workers must access these services on their own. This adds to the paperwork and long delays they already face in the WSIB process. None of this actually puts the burden back on to the employer. In fact, the WSIB reduced employer premiums by 9.3% since 2016.
Wait-times for WSIB claims and appeals, and later for WSIAT appeals, can be extensive. It can take years following the date of your injury to resolve an appeal. So, many workers go without regular – or any – income while they wait to learn the fate of their WSIB claim. If your injury results in loss of earnings or out-of-pocket health care expenses, there are resources to help replace some of that money while you pursue a WSIB claim or appeal.
Keep in mind: If you pursue your appeal at WSIB, most outside benefit providers will require you to sign an Assignment of Benefits. This means that if you win your WSIB appeal, any money you received previously through those providers will be repaid by WSIB before the money is dispersed to you. This repayment is done dollar for dollar.
So, for example, if ODSP paid $1,000 and the WSIB decision pays $1,500, the WSIB will repay ODSP $1,000 out of the $1,500. In this example, the injured worker would receive $500 from WSIB.
Until we can fix WSIB, here’s where to start...
1. Some workers may have extended benefits like short-term disability (STD) or Weekly Indemnity (WI) through their employer/collective agreement. These benefits provide temporary income for injured or ill workers. Long-term disability (LTD) provides more permanent income replacement for an illness or recovery of a longer duration.
2. For workers without extended benefit coverage, Employment Insurance is the next step. EI is another temporary form of income replacement. You can receive up to a maximum of 15 weeks of EI Sickness Benefits.
3. For workers whose injury/illness prevents them from returning to any type of meaningful and consistent employment, the following three options are also available.
Ontario Works (OW)
OW is the quickest and easiest way to subsidize your income. It provides indefinite coverage but ends at the age of 65. Eligible applicants can get payments fairly quickly. You must live in Ontario, be in financial need, and be willing to make reasonable efforts to find, prepare for, and keep a job. A case worker will review your situation and meet with you regularly regarding participation and finances.
Ontario Disability Support Program (ODSP)
Disabled Ontarians can access financial assistance, benefits, and employment help through ODSP. You must be at least 18 years old and an Ontario resident, be in financial need, and meet the program’s definition of a person with a disability, or be a member of a Prescribed Class (already qualified at CPPD). Amounts paid depend on a number of factors such as whether you have children, a spouse, or dependents, where you live and how much you pay to live there; and more. You will meet with ODSP staff and must pursue other sources of income as well.
Visit mcss.gov.on.ca/en/mcss/programs/social for full details, eligibility requirements, and applications for OW and ODSP.
Canada Pension Plan Disability (CPPD) Benefit
CPPD provides benefits to people who have made enough contributions to the CPP and who are disabled and cannot work at any job on a regular basis. The definition of disability is strict under CPPD: To qualify the disability must be both severe and prolonged. Severe means you have a mental or physical disability that regularly stops you from doing any type of substantially gainful work. Prolonged is a long-term disability of indefinite duration or is likely to result in death. You must also be under the age of 65 and meet the CPP contribution requirements. You must apply as soon as you develop a severe and prolonged or terminal medical condition that prevents you from working.
Visit bit.ly/CPPDisability for full details on CPPD.
In all cases, always report any financial changes, keep your receipts and pay stubs, and keep up your end of the agreement.
