In setting assessment rates, the WCB's rate setting model considers an employer's individual cost experience and collective costs. To ensure fairness, accountability and responsibility among employers, some claim costs should be removed from an individual employer's cost experience and shared by a larger group of employers or transferred to another employer. When claim costs are removed from the accident employer and charged to a collective cost pool, this process is called cost relief. The cost transfer process occurs when claim costs are removed from the accident employer and charged to another employer.
The Workers Compensation Act (the Act) provides for the removal of claim costs in whole or in part from the accident employer in a number of circumstances. The Act also establishes a fund to apportion these pooled costs among employers. This policy describes the circumstances under which cost relief/cost transfer is provided to eligible employers, and how those relieved costs are subsequently shared by other employers or groups of employers through the assessment rate-setting process.