2015ANNUAL REPORTWORKERS COMPENSATION BOARD OF MANITOBALETTER TO THE MINISTERMinister Responsible for The Workers Compensation Act Room 358, Legislative Building Winnipeg, Manitoba R3C OV8Dear Minister:We are pleased to present our 2015 Annual Report in accordance with the provisions of The Workers Compensation Act. This report covers the 12-month period from January 1 to December 31, 2015. It includes the statements of accounts required to be kept under the Act.Respectfully submitted,Michael D. Werier ChairpersonTABLE OF CONTENTSAbout the WCB 5Vision, Mission and Values 6Message from the Chairperson 7Message from the President and CEO 8Board of Directors and Board Committees 10Our Customers 12Our System 14Our Partners 16Our People 18SAFE Work Manitoba 20SAFE Work Manitoba Financials 22Year at a Glance 23Historical Trends 24Management’s Responsibility for Financial Information 262015 Management Discussion and Analysis 27Risk Management 32Actuarial Opinion 33Actuarial Review 34Independent Auditor’s Report 35Consolidated Financial Statements 36To learn about the WCB’s future plans, please refer to the 2016-2020 Five Year Plan at www.wcb.mb.ca.ABOUT THE WCBThe Workers Compensation Board of Manitoba (WCB) is a mutual workplace injury and disability insurance agency funded by employer premiums. With a mandate to prevent workplace injuries and illnesses, the WCB and its approximately 600 staff are committed to building a culture of health and safety throughout Manitoba.Services and BenefitsIf people are hurt or become ill as a result of their work, the WCB is here to help, offering a wide range of benefits to assist injured workers in returning to health and meaningful work as soon as safely possible. Some of the benefits offered include:• replacement of lost income• healthcare treatments and payment of medication costs• employment retraining• lump sum payments for permanent impairments• benefits to partners and children in the event of a workplace fatality.As part of the WCB’s commitment to quality service and fair process, injured workers, their dependants and employers may contact the Fair Practices Advocate (FPA), an independent office that works to ensure fair practices at the WCB. Further information is available at www.fairpracticesofficemb.ca.DAYS LOST TO WORKPLACE INJURY OR ILLNESS*1.68per full time workerAVERAGE ASSESSMENT RATEper $100 of Assessable Payroll2011$1.502012$1.502013$1.502014$1.502015$1.30*For a five year historical trend, see page 24.2015 WCB ANNUAL REPORT | 5Our VisionA trusted partner, insuring today and building a safer tomorrow.Our MissionWe are here to insure and support safe and healthy work and workplaces.We put workers and employers at the centre of all we do.We provide them with valued services for injury prevention, compensation and return to health and work while maintaining system integrity.Our Strategic PrioritiesOur Customers – Understanding the diverse needs and expectations of workers and employers. Providing proactive and relevant services.Our System – Protecting the integrity of the compensation system. Honouring our governing principles and delivering on our mandate.Our Partners – Collaborating with our partners to deliver superior services and build a safer Manitoba.Our People – Engaging our employees to harness their commitment and passion. Developing our capabilities and our capacity to excel.Our ValuesIntegrity · Compassion · Innovation · Accountability · Collaborationourcustomers6 | 2015 WCB ANNUAL REPORT MESSAGE FROM THE CHAIRPERSONThe Board of Directors establishes the WCB’s strategic direction, approves the policies that guide the organization and monitors the progress the organization makes towards reaching its strategic goals. The work of the Board benefits from the experience and diverse representation of employers, workers and the public interest.The Board’s commitment to strong governance continues to benefit from the perspective that new members bring. In 2015, Chris Lorenc joined the Board as a new Employer Representative and Jan Schubert joined as a new Public Interest Representative.In 2015, the Board was also active on the policy front. On behalf of the Government of Manitoba, the Board consulted with stakeholders about workers compensation coverage for Post-Traumatic Stress Disorder (PTSD). Following the passage of PTSD presumptive legislation, the Board revised its psychological injuries policy to align with the new legislation.Following the 2014 comprehensive review of the assessment rate model, the Board approved six core changes to the model and a five-year transition plan for implementation. The changes respond to stakeholder concerns heard during the consultation phase of the review and enhance fairness and balance in the rate-setting system.The Board also approved a number of other policy revisions. To enhance clarity and transparency, the Board revised its policy on reconsiderations using modernized language that reflects the current legal and policy landscape. The Board continued its oversight of the WCB’s investments by making changes to the fixed income and real estate portfolios.The Board also continued to review and monitor the WCB’s progress on implementing the recommendations of 2013’s Fair Compensation Review. Many of these recommendations were closely tied to the WCB’s new compliance framework. This included refining the penalty structure to recognize compliance over time.Working with the Executive Management Committee, the Board also confirmed the Future State of the WCB as a reflection of its vision statement: A trusted partner, insuring today and building a safer tomorrow.In 2015, the Board’s Prevention Committee completed its first full year. Established in response to the provincial government’s 2014 legislation (The Workers Compensation Amendment Act), the Committee assists the Board of Directors in fulfilling its oversight responsibilities for the prevention of workplace injuries and illnesses through SAFE Work Manitoba.I would like to acknowledge and thank our dedicated Board members for their active participation in guiding the organization.On behalf of my colleagues, I also extend my thanks to all of the staff for their hard work in 2015 in support of the Board’s vision of being a trusted partner, insuring today and building a safer tomorrow.Michael D. Werier Chairperson2015 WCB ANNUAL REPORT | 7MESSAGE FROM THE PRESIDENT AND CEO2015 was a year of progress for the WCB on many fronts, as numerous activities took place to enable us to be responsive to our customers and partners. We ended the fiscal year in a position of strength that is sustainable for the future, allowing us to continue to deliver on our many organizational objectives.In 2015, the WCB began a transition to a more fair and balanced assessment rate model. We made some rate model changes immediately while others will be phased in by 2020. The new rate model will respond to the unique needs of different sized employers, reduce rate volatility, provide increased protection through collective liability, and balance the rate impact of preventing injuries with the impact of controlling claims after an injury has occurred. While increased protection will cost slightly more for some small and medium employers, our strong financial position allowed us to absorb some of the impact by reducing the 2016 overall average assessment rate from $1.30 to $1.25.The WCB is also continuing to explore ways to improve our customers’ experience. In 2015, this included completing a customer journey map for injured workers and beginning the same exercise for employers. Customer journey maps are helping us to better understand and respond to customer needs. From creating best practices for managing claims to enhancing our phone service so that customers can speak to a live person at any time during business hours, our Compensation Services team is well on its way to improving service delivery.Our compliance efforts also gained traction in 2015 with new resources to help employers and workers understand their rights and responsibilities with respect to the workers compensation system. The launch of our employer Self-Evaluator tool allows workplaces to check their compliance in a number of key areas and seek help from our Compliance Services team. Our compliance education also extended to new businesses that now receive enhanced material aimed at setting them on a path of success in fulfilling their responsibilities.PERCENTAGE OF WORKFORCE COVERED 76%8 | 2015 WCB ANNUAL REPORT In 2015, we developed the key characteristics which describe our Future State and a concrete description that illustrates what it means for us to achieve that vision. In that future, Manitoba’s days lost to workplace injury and illness will be at an all-time low. Achieving this state will require focused efforts on preventing injuries from occurring in the first place, reducing the severity of injuries and improving recovery and return to work following injuries.Our injury prevention efforts through SAFE Work Manitoba made further inroads in 2015. From new safety programs to enhanced training, we are continuing to see positive results towards the desired Future State.Successful return to work following an injury requires a partnership among the worker, employer, healthcare provider and the WCB. Recognizing we could do more to help in the process, we established a new team to help employers create or enhance their return to work programs in 2015. For injured workers, an excellent return to work program can lessen the personal and financial impact of an injury or illness and aid in recovery.The WCB is a vibrant and energetic organization committed to being a trusted partner that benefits all Manitobans. Our achievements this year and the momentum we have in place are the result of hard work from WCB staff who are committed to the work they do. We are already witnessing an encouraging trend in a reduction in Manitoba’s days lost to workplace injuries and illnesses, illustrating that the dedication of our front line staff, in combination with the efforts of our partners, is paying off.I am proud of all of our accomplishments to date and continue to look forward to positive results as we implement our many multi-year projects that will result in a strong and secure workers compensation system for future generations.Winston Maharaj President and CEO2015 WCB ANNUAL REPORT | 934,204REGISTERED EMPLOYERSNext >