Board able to create $50 million reserve to fund safety initiatives
WorkSafeBC had a surplus of $672 million last year, due primarily to investment returns on the board’s $12 billion accident fund.
Revenues were higher than expected because of the investment returns, according to WorkSafeBC.
“Using a long-term conservative approach to investing, we achieved very positive results in 2010 — and are continuing to recover after the economic downturn in 2007 and 2008,” said Steve Barnett, WorkSafeBC’s CFO.
Premium revenues were slightly higher than the organization planned, due to an increase in the provincial labour income, the board reported.
Costs were lower in 2010 compared to 2009 because provincial injury rates and claim volumes decreased. The board was able to create a $50 million reserve in 2010 to fund initiatives to reduce workplace injuries and improve return to work outcomes, according to WorkSafeBC.
The organization contributed $400 million to its Capital Adequacy Reserve in 2010.
“Income from 2010 was used to bolster the Capital Adequacy reserve and ensure our future financial security,” said Barnett.
“There are roughly 39,000 workers who receive long-term disability payments and survivor pensioners whose future security is enhanced through this capital adequacy reserve,” said Barnett. “It will also benefit employers because we can better shelter them from rate increases caused by unpredictable market returns or costs above those assumed in our liabilities.”
