< Previous60 2016 WCB ANNUAL REPORTClaims DevelopmentThe table below compares actual claim liabilities to previous estimates back to the earliest period for which there is material uncertainty about the estimate and timing of claim payments.Injury YearEstimate of ultimate claims2006 & Prior2007200820092010201120122013201420152016End of accident year$ 1,458,654 182,168 203,916 184,494 181,728 196,690 202,359 211,487 219,081195,543192,3311 year later1,516,628 191,645 187,514 165,260 171,672 182,934 204,976 203,221 187,526188,020-2 years later1,531,656 189,544 175,901 172,820 170,445 193,678 200,459 180,672180,810--3 years later1,540,794 187,199 185,187 173,058 183,276 190,184 184,729177,863---4 years later1,591,397 190,159 184,284 184,782 181,488 175,290183,041----5 years later1,672,185 190,595 199,761 183,809 169,155171,743-----6 years later1,692,401 198,086 198,546 173,308166,838------7 years later1,786,175 197,405 188,664171,647-------8 years later1,848,853 189,258187,209--------9 years later1,754,856188,802---------10 years later1,741,245----------Injury YearCumulative claims paid2006 & Prior2007200820092010201120122013201420152016End of accident year$ 158,624 46,859 50,599 48,096 46,249 47,401 47,263 47,333 47,50046,953 47,9081 year later285,510 82,221 84,294 77,860 74,123 76,708 78,400 74,773 72,56774,647-2 years later383,157 96,974 96,378 87,285 84,207 86,321 88,071 83,00281,443--3 years later467,653 106,870 104,554 94,078 90,830 92,230 95,16789,965---4 years later547,097 113,748 110,788 99,426 95,642 96,519100,841----5 years later620,003 119,384 115,963 103,890 99,64599,889-----6 years later688,743 123,961 120,129 107,590103,134------7 years later752,415 127,565 123,619110,988-------8 years later811,184 130,844126,954--------9 years later866,090134,042---------10 years later919,213----------Injury Year2006 & Prior2007200820092010201120122013201420152016TotalCumulative estimate of ultimate claims$ 1,741,245188,802187,209171,647166,838171,743183,041177,863180,810188,020192,331$3,549,549Less: Cumulative claims paid919,213134,042126,954110,988103,13499,889100,84189,96581,44374,64747,9081,889,024Current year unpaid and unreported claims 822,032 54,76060,25560,65963,70471,85482,20087,89899,367113,373144,4231,660,525Effect of discounting(749,146)Administration cost within benefit liabilities92,111Future dated long latency liability103,152Total benefit liabilities$1,106,6422016 WCB ANNUAL REPORT 6114. BENEFIT LIABILITIES FOR SELF-INSURED EMPLOYERSNote 13 contains a complete description of the components of the benefit liabilities for all employers. An analysis of the portion relating to self-insured employers is as follows:20162015Short Term DisabilityLong Term DisabilitySurvivor BenefitsHealthcare BenefitsRehabilitation ServicesTotalTotalBalance at beginning of year$ 15,963 $ 76,727 $ 22,264 $ 52,869 $ 360 $ 168,183 $ 139,631 Add: Claim costs incurredCurrent year 5,363 5,367 540 6,931 16 18,217 19,306 Prior years 5,535 (4,701) 1,392 2,469 (326) 4,369 31,492 10,898 666 1,932 9,400 (310) 22,586 50,798 Less: Claim payments madeCurrent year 4,105 92 - 2,706 2 6,905 6,515 Prior years 4,124 6,113 2,535 5,542 (62) 18,252 15,731 8,229 6,205 2,535 8,248 (60) 25,157 22,246 Balance at end of year$ 18,632 $ 71,188 $ 21,661 $ 54,021 $ 110 $ 165,612 $ 168,183 Included in premiums and claim costs for self-insured employers are payments in the amount of $4.6 million ($3.8 million in 2015) made by self-insured employers directly to injured workers on the WCB’s behalf. These amounts are reported to the WCB for inclusion in these financial statements.Included in the benefit liabilities balance is $42.6 million ($42.2 million in 2015) for self-insured employers’ share of the long latent occupational disease liability and $13.2 million ($12.7 million in 2015) for the future cost of administering existing claims.15. PREMIUM REVENUE20162015Premiums - Class E employers$226,639$230,059Assessments - Self-insured employers29,26826,310Increase in deferred assessments (Note 7)97429,031Total premium revenue$256,881$285,40062 2016 WCB ANNUAL REPORT16. OPERATING EXPENSES20162015Salaries, employee benefits and training$65,003 $ 62,380 Information technology service fees 1,7031,579 Occupancy costs 3,4113,090Office supplies, services and projects 1,9661,784Communications 1,5281,395Professional fees 3,0993,268Donations 116108Amortization of capital assets 3,3452,857 80,17176,461Appeal Commission 1,4001,347Research and Workplace Innovation Program grants 1,320903Recoveries from the Government of Canada (2,193)(1,834)SAFE Work Manitoba 6,0574,846Province of Manitoba Workplace Safetyand Health Department funding (Note 17) 8,9618,889Total operating expenses$ 95,716$90,612Of the total operating expenses, $8.5 million ($7.1 million in 2015) was allocated to self-insured employers based on the current year’s transaction volumes.The WCB administers the Government Employees Compensation Act program for the Government of Canada. The operation of this program is reflected only to the extent of the recoveries of operating expenses.17. RELATED PARTY TRANSACTIONSThe WCB is a statutory corporation created by the Manitoba Legislature. The WCB is a government agency of the Province of Manitoba that operates at arm’s-length from government. As an agency of the Province of Manitoba, the WCB applies the exemption for government-related entities in IAS 24 Related Party Disclosures. Pursuant to The Workplace Safety and Health Act of Manitoba, the Province may pay the expenses incurred in the administration of that Act out of the consolidated fund and may, subsequently, recover such portion as it may determine from the WCB under The Workers Compensation Act of Manitoba. For 2016, the amount charged to operations under this provision was $8.3 million ($8.4 million in 2015).Also, under Section 84.(1) of The Workers Compensation Act of Manitoba, the Province may pay the costs incurred in respect of worker advisors and may recover them from the WCB. For 2016, the amount charged to operations under this provision was $0.6 million ($0.7 million in 2015).In addition to the legislated obligations referred to above, included in these financial statements are amounts resulting from routine operating transactions conducted at prevailing market prices with various provincial government controlled ministries, agencies and Crown corporations with which the WCB may be considered related. This includes the provision of assistance, in the form of medical opinions and appeal services, for the Province of Manitoba relating to criminal injury claims. The provincial government is also a self-insured employer under The Workers Compensation Act of Manitoba. Accordingly, the Province of Manitoba was allocated $3.1 million ($2.5 million in 2015) of the total operating expenses (Note 16) based on their transaction volume. Balances resulting from transactions with the Province of Manitoba are included in these financial statements and are settled on normal trade terms.2016 WCB ANNUAL REPORT 63Included in the WCB’s investment portfolio as at December 31, 2016 are guaranteed debentures issued by the Province of Manitoba in the amount of $2.8 million ($4.0 million in 2015).Other Related Party DisclosuresIn addition to the related government entities above, the key management personnel of the WCB (comprised of the WCB executive personnel and the Board of Directors) are deemed related parties. By definition, close family members of the key management personnel are also related parties of the WCB. Any transactions or business relationships are incidental, and carried out at normal trade terms.The WCB has a pension plan for the benefit of WCB employees, which is a related party by definition of IAS 24 Related Party Disclosures. Detailed information on transactions with the pension plan can be found in Note 12.Key Management Compensation The following table shows total compensation for the executive personnel of the WCB:20162015Short term employee benefits$ 1,859 $ 1,625 Post-employment benefits 331 383 $ 2,190 $2,008 Short term employee benefits include salary, vacation, car allowances, group health and dental benefits, group life insurance, and the employer’s share of contributions to the Canada Pension Plan and employment insurance. Post-employment benefits include the estimated current service cost accrued for pension and other post-employment benefits. The following table shows the total compensation for the Board of Directors of the WCB:20162015Fees$ 164 $165Benefits - 2$ 164 $ 167The Board of Directors is comprised of 10 members appointed by the Government of Manitoba. Members’ remuneration is set out in Order in Council passed by the Lieutenant Governor in Council.18. COMMITMENTSThe WCB has signed operating leases for office premises and office equipment expiring at various times until October 30, 2026. The minimum lease obligations over the next five years are:20172018201920202021ThereafterTotal$ 1,914 $ 1,916 $ 1,612 $ 1,289 $ 1,318 $ 4,689 $12,73864 2016 WCB ANNUAL REPORT19. CONTINGENCIESThe WCB is party to various claims and lawsuits related to the normal course of business that are currently being contested. In the opinion of management, the outcome of such claims and lawsuits are not determinable. However, based on the total amount of all such actions, the WCB has concluded that their outcomes, either individually or in aggregate, will not have a material effect on the results of operations or financial position.20. AUDITOR INDEPENDENCEGrant Thornton LLP did not provide non-audit services to the WCB in 2016 or 2015.21. COMPARATIVE FIGURESCertain comparative figures and disclosures have been reclassified to conform to the financial statement presentation adopted in the current year.Here to Help Since 1916YEARSWorkers Compensation Board of Manitoba333 Broadway, Winnipeg, MB R3C 4W3WCB@wcb.mb.ca | 204-954-4321 | 1-855-954-4321wcb.mb.caNext >