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2010 Annual ReportWorkers Compensation Board of Prince Edward Island

FIX IT BEFORE IT’S AN INJURY

www.wcb.pe.ca

REplAcE ITBEFORE IT’S AN INJURY

REplAcE ITBEFORE IT’S AN INJURY

14 Weymouth Street, P.O. Box 757 Charlottetown, Prince Edward Island, C1A 7L7Telephone: 902-368-5680 Toll-Free in Atlantic Canada: 1-800-237-5049 Fax: 902-368-5696

www.wcb.pe.ca

April 29, 2011

Hon. Janice SherryMinister of Community Services, Seniors and LabourP.O. Box 2000Charlottetown, PE C1A 7N8

Dear Minister Sherry,

In accordance with Section 34 of the Workers Compensation Act, the Board is pleased to provide its Annual Report for the year ending December 31, 2010.

Nancy GuptillChair

Letter of Transmittal

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Report to Stakeholders 3

About Us: Our Mission - Our Values - Our Organization 4

Our Board of Directors 5

A Message from the Chair and the CEO 6

Strategic Plan - Our Plan, Our Results 10 Sharing Prevention Responsibilities 11 Improving Worker Outcomes 14 Meeting Service Expectations 16 Promoting Strength Within 19

Securing the Future 20

At a Glance: Key Statistical Measures 24

Financial Statements 272727 25

Preface to the Audited Financial Statements 26

Actuarial Certificate 27

Auditors’ Report 28

Financial Statements 29

Notes to the Financial Statements 32

External Reports 47

Workers Compensation Appeal Tribunal 48

Office of the Employer Advisor 52

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Table of Contents

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Report to Stakeholders

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About Us

Our Values• Wetreatpeoplewithfairness,careandrespect

• Wecommunicateinanopenandhonestmanner

• Weareaccountabletothepublicandourstakeholders

• Webelieveinteamworkandarecommittedto

continually improving our services

• Wefostertrust

• Weactwithintegrityandprofessionalism

Our MissionThe Workers Compensation Board exists to

promotesafeworkplacesandtoprotect

employersandinjuredworkersthrougha

sustainable accident insurance program.

Our OrganizationBoard of directors

chief executiveofficer

legal services human resourcesclient services corporate services corporate development

occupational health & safety

intake & entitlement

case management

extended Benefits

medical services

finance

information technology

employer services

facilities & procurement

internal reconsideration

policy & planning

communications

education & enforcement

Our Board of Directors

TheWorkersCompensationBoard(WCB)BoardofDirectors:(top,fromleft)MargaretStewart,HarveyLarkin,AngusHouston,SandyMacKay,TammyChaisson,StuartAffleck(bottom)CharleneMcInnis,NancyGuptill,MikeAnnear.

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Chair

Nancy GuptillMs. Guptill has been Chair of the Workers Compensation Board since 2007. ShehasmademanycontributionstoPrinceEdwardIslandasaformerMLAandCabinetMinister.Ms.GuptillwasresponsiblefortheWorkers Compensation Act as the Minister of Labour and the Status of Women. She alsoservedastheMinisterofTourism,wasresponsibleforhumanrightsintheprovince,andwasthespeakerofthelegislativeassembly.

Worker Representatives

Tammy ChaissonMs.ChaissonhasbeenaworkerrepresentativeontheBoardofDirectorssince 2008. She currently is employed as a Medical Laboratory Technologist atbothWestern&CommunityHospitalsandisPresidentoftheInternationalUnionofOperatingEngineers.ShehasservedontheOccupationalHealthandSafetyAdvisoryCouncil,wasanexecutivememberofthePEIFederationofLabouraswellasaBoardmemberofthePEIHealthSectorCouncil.

Sandy MacKayMr.MacKayhasbeenaworkerrepresentativeontheBoardofDirectorssince2004.HeisapastPresidentofboththePEIUnionofPublicSectorEmployeesandtheFederationofLabour.Mr.MacKaywasamemberofthetaskforcethatdevelopedthefirstOccupationalHealthandSafetyActforPEIandhasservedontwoMinisterialadvisorycommitteesthatrecommendedchanges to the Workers Compensation Act.

Charlene McInnisMs.McInnishasbeenaworkerrepresentativeontheBoardofDirectorssince2004.Injuredonthejobin1999,shestartedworkingwithInjuredWorkersgroupsandbecametheInjuredWorkersOrganizationalCommitteeSpokespersonin2002.SheiscurrentlyemployedasthePEIMilitaryFamilyServicesCoordinatorandnowworksforandwithmilitaryfamilieslivingonPEIandadvocacygroupsforCanadianForcesmembersinjuredinthe line of duty.

Margaret StewartMs.StewarthasbeenaworkerrepresentativeontheBoardofDirectorssince2005.AhighschoolEnglishteacherforovertwentyyears,andateacher-librarianfornine,Ms.StewartwasactivelyinvolvedintheworkofthePEITeachers’Federationforovertenyears,andservedasPresidentofthePEITeachers’FederationandaDirectoroftheCanadianTeachers’Federation from 2001-2003.

Employer Representatives

Stuart AffleckMr. Affleck has been an employer representative on the Board of Directors since2008.HewasafarmownerandoperatorforthirtyeightyearsandhasheldmanypositionsthroughorganizationssuchasthePEIPotatoBoard,EastPrinceRegionalHealthBoard,PEIUnit2RegionalSchoolBoardandthePEIProvincialFamilyFarmAppealsBoard.

Mike AnnearMr. Annear has been an employer representative and Vice-Chair of the BoardofDirectorssince2008.HewasamemberoftheLegislativeReviewCommittee for the Workers Compensation Act in 2007 and served on theBoardofDirectorsforthePEIRoadBuildingandHeavyEquipmentAssociation. Mr. Annear also coordinated safety training and programming for Kings County Construction Ltd. for fifteen years.

Angus HoustonMr.HoustonhasbeenanemployerrepresentativeoftheBoardofDirectorssince2008.HehasoverthirtyyearsexperienceasanemployeronPEIworkinginanumberofcapacitiesinboththehealthandhospitalityindustries.Mr.Houstonhasalsoownedandco-ownedrestaurantsinbothMontagueandCharlottetown.

Harvey LarkinMr. Larkin has been an employer representative of the Board of Directors since2006.Heisanemployerinthehospitalityindustrywithannualemploymentof20-25andisafarmco-ownerandoperatorintheturkeygrowingbusiness.Mr.Larkinhasalsoservedasaboardmemberonvariouscommunity organizations.

On behalf of the Workers Compensation Board (WCB) of PrinceEdwardIsland,wearepleasedtopresentourannualreportfor2010.Eachyear,weareprivilegedtoreporttoyou,our stakeholders, on our activities and financial performance fortheyear.Itisalsoanopportunitytoreflectonthereasonswhyourorganizationexistsandontheneedswestrivetoserveasyourprovincialcompensationandworkplacesafetyorganization.

Becauseourprovincehasbeenprotectedbyaworkplacecompensation system for over 60 years, many of our stakeholderswouldnotrememberatimewhentheWorkersCompensationBoarddidnotexist.Ourorganizationwasconceivedtoprotectworkers–notjustthosewhocouldaffordto pursue injury claims through the legal system - from the impactofworkplaceinjury,whileatthesametimeprotectingemployersfromcostlylawsuits.

Thesystemwasbasedontheprinciplesofno-faultcompensation, collective liability and security of payment, administeredbyanindependentboardwithexclusivejurisdiction. Coined the Meredith Principles, after the Ontario RoyalCommissionerwhofirstproposedthemalmost100yearsago, these principles are still relevant today and are the basis of compensationsystemsacrossthecountry.Aswereflectback

A MessageFrom the Chair and the CEO

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Messagedu président et de la directrice généraleAu nom de la Commission des accidents du travail de l’Île-du-Prince-Édouard, nous sommes heureux de vous présenter le rapport annuelde2010.Chaqueannée,nousavonsleprivilègedefairepart à nos parties prenantes de nos activités et de nos résultats financierspourl’année.Ils’agitégalementd’uneoccasionderéfléchiràlaraisond’êtredenotreorganismeetauxbesoinsquenousnousefforçonsdesatisfaireentantqu’organisationprovincialed’indemnisation et de santé et sécurité au travail.

Étantdonnéquenotreprovinceestprotégéeparunsystèmed’indemnisation des accidentés du travail depuis plus de 60 ans, beaucoup de nos parties prenantes ne se souviendront pas de l’époqueoùlaCommissionn’existaitpas.Notreorganismeaétécréépourprotégerlestravailleursettravailleuses–cequin’inclutpasseulementceuxquiontlesmoyensdeprésenterdesdemandespourblessurescorporellesparl’intermédiairedusystèmejuridique–contrelesconséquencesdesblessuresautravail,demêmequepour protéger les employeurs contre les poursuites coûteuses.

Cesystèmeaétéfondésurlesprincipesdel’indemnisationsanségard à la faute, de la responsabilité collective et de la garantie de paiement, et est géré par une commission indépendante jouissant d’une compétence exclusive. Appelés « principes de Meredith », d’aprèslenomdumembred’unecommissionroyaledel’Ontarioquiaétélepremieràlesproposerilyaunecentained’années,cesprincipes sont toujours pertinents aujourd’hui et constituent la base dessystèmesd’indemnisationàl’échelledupays.Danslecadredenotre réflexion sur nos activités de 2010, nous sommes heureux de soulignerquelaCommissiondesaccidentsdutravailcontinuedesoutenir et de promouvoir les principes de Meredith pour protéger les travailleurs, les travailleuses et les employeurs de l’Île.

Le premier principe de Meredith, l’indemnisation sans égard à la faute, fait référence à l’abandon du droit de poursuite des travailleurs,destravailleusesoudesemployeurs,desortequelesblessures et les maladies liées au travail puissent faire l’objet d’une indemnisation sans égard à la responsabilité. En 2010, les efforts delaCommissionpoursoutenirlesystèmed’indemnisationsanségard à la faute ont été concentrés sur l’obtention de résultats fructueux pour les travailleuses et travailleurs accidentés dans deux domaines clés : le retour au travail effectué en toute sécurité et au bonmoment,ainsiquelagestionefficacedesdemandespourlesblessures aux tissus mous.

Un retour au travail réussi n’est pas seulement avantageux sur le plan affectif et financier. En effet, rester actif et demeurer lié au milieu de travail peut favoriser le rétablissement d’un travailleur. En 2010, la Commission a mis sur pied la campagne d’affichage «BridgetoRecovery»(Unpontverslaguérison),quiciblaitleslieux de travail et les bureaux des fournisseurs de soins de santé

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onouractivitiesof2010,wearepleasedtohighlighthowtheWorkers Compensation Board has continued to uphold and promoteMeredith’sprinciplestoprotectIslandworkersandemployers.

Meredith’s first principle of no-fault compensation refers to the exchangeoftherightofaworkeroremployertosue,sothatworkplaceinjuriesandillnessescanbecompensatedregardlessoffault.In2010,theWCB’seffortstosupportasystemofno-fault compensation system focused successful outcomes forinjuredworkersintwokeyareas–timelyandsafereturntoworkandtheeffectivemanagementofsofttissueinjuryclaims.

Asuccessfulreturntoworknotonlyhasemotionalandfinancialbenefits,butremainingactiveandconnectedtotheworkplacecanpromoteaworker’srecovery.In2010,theWCBdevelopedthe Bridge to Recoverypostercampaign,targetingworkplacesand health care providers’ offices in an effort to increase understandingandpromotethebenefitsofworkintherecoveryprocess.ThispastyearalsosawtheredevelopmentofourReturntoWorkWorkplaceGuidetoassistworkersandemployersthroughtheprocessofareturntoworkinatimelyand safe manner.

As in previous years, soft tissue injuries accounted for the majorityofPEI’sworkplaceinjuriesin2010.Buildinguponthesuccess of our Critical Path initiative for back injuries, in 2010 wecontinuedourcriticalpathworkintheareaofsofttissueinjuries to the shoulder. Our critical paths map out the roles, responsibilities and critical points in a claim, to help employers, workers,healthcareprovidersandtheWCBworktogethertoensure the effective management of these types of claims. This pastyearalsosawthecontinuedworkofourclaimsprocessingimprovements, particularly in the area of extended benefits, to ensurethatwemeetandexceedstakeholderexpectations.

The extension of Meredith’s no-fault principle in our compensationsystemisthatworkplacesafetybecomeseveryone’s responsibility. At the Workers Compensation Board our occupational health and safety efforts are underpinned by the belief that injuries are not inevitable, and in 2010, weincreasedoureffortstopreventinjuriesbeforetheyhappen.Weexpandedourworkplaceoutreachwithover200occupationalhealthandsafetyworkshopsandpresentations.WewerepleasedtohavetheopportunitytopartnerwithIslandfarmers and the Nova Scotia Agricultural College to develop the safety curriculum for the first Farm Technician Apprenticeship program.In2010,wedevelopedthe Work Out Loud campaign foryoungworkers,toleveragetheenthusiasmofyouth,andchannelthatenergyintoassertiveness,knowledgeandactionaboutworkplacesafety.Theinitiativealsoprovidespracticaltoolsforemployersofyoungworkerstohelpthemidentifyandaddresspotentialknowledgegapsaboutworkplacesafety.Our prevention efforts throughout 2010 benefited from the guidanceoftheOHSAdvisoryCouncil,whoseroleistoprovideadviceonworkplacesafetymattersandonproposedrevisionsto our health and safety legislation.

pour essayer d’accroître la compréhension et de promouvoir les avantages du travail dans le processus de rétablissement. Au cours deladernièreannée,laCommissionaaussipréparélamiseàjourdudocumentReturntoWork–WorkplaceGuide(Leretourautravail:un guide pour le milieu de travail) afin d’aider les travailleurs et les travailleuses,ainsiquelesemployeursdansleprocessusderetourautravail,desortequ’ilsoitfaitaubonmomentetentoutesécurité.

Comme par les années passées, les blessures aux tissus mous ont représenté la majorité des blessures au travail à l’Î.-P.-É. en 2010. En nousappuyantsurlesuccèsdel’initiativeChemincritiquepourlesblessures au dos, nous avons poursuivi, en 2010, notre travail en matièredecheminscritiquespourlesblessuresauxtissusmousdel’épaule.Lescheminscritiquesétablissentlesgrandeslignesdes rôles, des responsabilités et des points cruciaux liés à une demande pour aider les employeurs, les travailleurs, les travailleuses, les fournisseurs de soins de santé et la Commission à travailler conjointement afin d’assurer la gestion efficace de ce type de demande. L’an dernier, la Commission s’est également employée activement à améliorer le processus de traitement des demandes, en particulier dans le secteur des prestations prolongées, pour veiller àcequelesattentesdespartiesprenantessoientsatisfaites,voiredépassées.

LeprincipedeMeredithenmatièred’indemnisationsanségardàlafauteestélargidansnotresystèmepourengloberlanotionvoulantquelasécuritéenmilieudetravailsoitlaresponsabilitédetous.ÀlaCommissiondesaccidentsdutravail,noseffortsenmatièredesantéetsécuritéautravailsontsoutenusparlacroyancequelesblessuressont évitables. D’ailleurs, en 2010, nous avons déployé plus d’efforts pourquelesblessuressoientévitéesavantqu’ellesnesurviennent.Nous avons augmenté nos interventions directes en milieu de travail grâce à plus de 200 ateliers et présentations sur la santé et la sécurité autravail.Nousavonsététrèsheureuxd’avoirlapossibilitédenousassocieraveclesagriculteursdel’ÎleetleCollèged’agriculturedelaNouvelle-Écosse pour élaborer le contenu sur la sécurité du premier programmed’apprentissagedetechniquesagricoles.En2010,nousavons mis sur pied la campagne « Work Out Loud » (La sécurité au travail, parlons-en!) pour les jeunes travailleurs et travailleuses afin de tirer parti de l’enthousiasme de la jeunesse et de canaliser cette énergieversl’assurance,laconnaissanceetl’actionencequiatraità la sécurité en milieu de travail. Cette initiative offre également aux employeurs de ces jeunes travailleurs et travailleuses des outils pratiquespourlesaideràcerneretàcomblerdepossibleslacunesenmatièredeconnaissancessurlasécuritéenmilieudetravail.Aucoursdel’année2010,noseffortsenmatièredepréventiononttiré avantage de l’orientation offerte par le Conseil consultatif sur la santé et la sécurité au travail, dont le rôle est de donner des conseils surlesquestionsrelativesàlasécuritéenmilieudetravailetsurlespropositionsderévisionsdesloisenmatièredesantéetdesécurité.

Le principe de Meredith de la responsabilité collective consiste en lepartageducoûttotaldusystèmed’indemnisation.Àcetégard,tous les employeurs de l’Île cotisent à la caisse des accidents. Pour quelesystèmesoitvéritablementjuste,laresponsabilitédoitcorrespondreauxcoûtsetauxrisquesdeblessureetdemaladie.LesystèmedeclassificationdesemployeursdelaCommissiongroupelesemployeursselonlescatégoriesetlestauxderisqueappropriéspourveilleràcequ’ilyaitsuffisammentdefondsafindecouvrirles coûts liés aux blessures. En 2010, la Commission a effectué un examenapprofondidusystèmedeclassification.Lebutdecet

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Meredith’s principle of collective liability means that the total costofthecompensationsystemisshared,withallIslandemployers contributing to the accident fund. To be a truly fair system, liability must reflect costs and risks of injuries and illness. The WCB’s employer classification system groups employers into appropriate risk classes and rates to ensure there aresufficientfundstocoverthecostsofinjuries.In2010,theWorkers Compensation Board conducted a comprehensive reviewoftheclassificationsystem.Thepurposeofthereviewwastoensurethatassessmentratesarealignedwithinjurycostsandtheriskofworkplaceinjuryandillness,andthesystemasawholeprovidesenhancedincentivesforinjurypreventionandeffectivereturntoworkprograms. Asaresultofthisreview,andinconsultationwithIslandemployers and employer groups, improvements to the system wereimplemented,effectiveJanuary2011,tomakeitfairerforallIslandemployers.AlthoughmanyIslandemployersexperienced a rate reduction as a result of the classification changes,thereweresomewhoseratesincreasedsignificantlytobemorealignedwiththecostsandrisksofworkplaceinjuryand illness in their industries. For those employers, a transition plan has been put in place to provide time to absorb the costs andtoimproveinjuryexperiencemovingforward.Throughout2010,theWCBmetwithemployersandindustrygroupsto provide greater clarification about the impact of injury experienceonassessmentratesandhowinjurypreventioncanhelplowertheoverallcostsofclaimsandsubsequentlytheirrates.In2010,wealsocommittedtomonitoringtheclassificationsystemonanannualbasis,sothatitwillcontinueto reflect the realities of the costs of injuries and the risks of workplaceinjuries.

The principle of security of payment is closely connected to the collection of employer assessments and the management of investments. Security of payment means that a fund is established to guarantee compensation is available for injured workerswhentheyneedit.In2010,theWorkersCompensationBoard continued to secure our financial sustainability, thereby securingpaymentforinjuredworkers.Inadditiontothedemonstrated effectiveness of our funding strategy in the maintenance of our funding status, in 2010 our long term investments remained stable to buttress our financial security. Wearepleasedtoannouncethatweremainedafullyfundedorganization in 2010, and continued to be able to issue prompt compensationforthosewhoneeditnowandinthefuture.

The Workers Compensation Board has the sole authority to administercompensationclaimsonbehalfofIslandworkersandemployers.ThisiswhatwasmeantbyMeredith’sprincipleofexclusivejurisdiction,inwhichtheWCBmakesclaimdecisions through the application of the Workers Compensation Act,witheveryclaimforcompensationconsideredonitsownmerits. WCB decisions are subject to the scrutiny of an internal reconsideration process and the appeal process at the Workers CompensationAppealTribunal.In2010,therewasasignificant

examenétaitdes’assurerquelestauxd’évaluationcorrespondentbienauxcoûtsliésauxblessuresetauxrisquesdeblessuresetdemaladiesassociéesautravail,etquelesystème,danssonensemble,fournit des mesures incitatives améliorées pour la prévention des blessures et les programmes de retour au travail efficaces.

Grâce à la collaboration des employeurs et des groupes patronaux de l’Île, cet examen a eu comme résultat la mise en œuvre d’améliorationsdanslesystème,dontl’entréeenvigueuraeulieu en janvier 2011. Ces améliorations ont comme but de rendre lesystèmepluséquitablepourtouslesemployeursdel’Île.Bienquebeaucoupd’employeursaientvuleurtauxdiminuerenraisondes changements apportés à la classification, certains ont observé unehausseconsidérabledeleurtaux,quiaétéajustépourmieuxcorrespondreauxcoûtsetauxrisquesdeblessuresetdemaladiesliées au travail de leur secteur d’activité. Pour ces derniers, un plan de transition a été mis en place pour leur donner le temps de prendreenchargelescoûtsetd’améliorerleursrésultatsenmatièred’accidents de travail. Au cours de 2010, la Commission a rencontré les employeurs et les groupes industriels pour clarifier davantage leseffetsdesrésultatsenmatièred’accidentsdetravailsurlestauxd’évaluationetlamanièredontlapréventiondesblessurespeutaider à baisser les coûts globaux des demandes et, par la suite, les taux. En 2010, nous nous sommes aussi engagés à soumettre le systèmedeclassificationàunexamenannuelsuivi,desortequ’ilcontinue de correspondre à la réalité relativement aux coûts et aux risquesassociésauxblessuresautravail.

Le principe de la garantie de paiement est étroitement lié à la collecte des cotisations patronales et à la gestion des placements. La garantie de paiement comporte la création d’un fonds afin de garantir la disponibilité des indemnisations pour les travailleuses ettravailleursaccidentésquandilsenontbesoin.En2010,laCommission des accidents du travail a continué d’assurer notre viabilitéfinancière,garantissantdecettefaçonlesindemnisationspour les travailleuses et travailleurs accidentés. En plus de la preuve montrant l’efficacité de notre stratégie pour le maintien de notre taux de financement, nos placements à long terme sont demeurés stablesen2010,cequiasoutenunotresécuritéfinancière.Noussommesheureuxd’annoncerqu’en2010,notreorganismeareposéentièrementsurlacapitalisationetqu’ilcontinuerad’êtreenmesuredeverserrapidementdesindemnisationsauxpersonnesquienontbesoinmaintenantetquiennécessiterontàl’avenir.

La Commission des accidents du travail détient l’autorité exclusive pour gérer les demandes d’indemnisation au nom des travailleurs, destravailleusesetdesemployeursdel’Île.C’estceenquoiconsistait le principe de Meredith relatif à la compétence exclusive. Ainsi, la Commission rend ses décisions au sujet des demandes en appliquantlaWorkers Compensation Act (loi sur les accidents du travail),etjugechaquedemanded’indemnisationcasparcas.Lesdécisions rendues par la Commission sont sujettes à faire l’objet d’uneétudedétaillée,danslecasoùilyauraitunnouvelexameninterne ou un appel fait au Tribunal d’appel des accidents du travail. En 2010, il y a eu une baisse considérable du nombre de décisions portéesenappel,cequipourraitêtreliéàl’améliorationdenotreprocessus décisionnel. Nous avons aussi organisé durant l’année une conférence sur les réexamens internes afin de promouvoir le partage desconnaissancesetlespratiquesexemplairesparmilesorganismesd’indemnisation du Canada.

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reductioninthenumberofappealssubmitted,whichmayberelatedtoimprovementsinourdecisionmaking.In2010,wealsoorganizedanInternalReconsiderationConferencetopromoteknowledgesharingandbestpracticesbetweencompensation organizations across Canada.

Meredith’s fifth principle, that of an independent Board autonomous from government or any special interest groups, enables the Workers Compensation Board the impartiality andaccountabilityrequiredtobalancetheinterestsofIslandemployersandworkers.TheWCBplacesahighpriorityonservice excellence. Every other year, on an alternating basis, wepollourstakeholderstofindouthowwecanimproveourservices. We are pleased to announce the results of our 2010 InjuredWorkersSurveyreflectahighlevelofoverallsatisfactionwiththeWCBexperienceat70.3%.In2010,wecontinuedto build the foundation for our E-business infrastructure, for increased convenience and accessibility for our employers, workersandhealthcareproviders.

TheWCB,whileanindependentorganization,isonlyaseffectiveasthepartnershipsweforgewithourstakeholdersandwiththecommunitiesweserve.In2010,ourBoardmemberscontinuedtoreflectadiversityofviewpointsfromacrosstheIsland,andrepresentedabalanceofworkerandemployer perspectives to guide the policy and direction of ourorganization.In2010westrengthenedourpartnershipswithourinternalstakeholdersthroughacomprehensivestaffinitiative to develop leadership at all levels of the organization. WecontinuedourpartnershipsathomewithIslandworkers,employers, health care providers and educators, and across theregionandthecountrywithourAtlanticSocialMarketingPartnershipandthroughourworkwiththeAssociationofWorkers Compensation Boards of Canada.

Asyoureadthebalanceofthisreport,youwillfindthat2010wasasuccessfulonefortheWorkersCompensationBoardofPrinceEdwardIsland,aswecontinuedtoachievethegoalsofour strategic plan. We thank all of our partners and stakeholders fortheirefforts,bothinIslandworkplacesandwithinourstaffteam,ourBoardandtheOHSAdvisoryCouncil.Welookforwardtocontinuingourworktogethertopromotesafeworkplacesandtoprotectemployersandinjuredworkers,justas Meredith envisioned so many years ago.

LecinquièmeprincipedeMeredith,soitlacréationd’unecommission indépendante agissant de façon autonome par rapport au gouvernement ou à tout autre groupe d’intérêt, permet à la Commission des accidents du travail d’avoir l’impartialité et la responsabilisationrequisespourtrouverunjusteéquilibreentreles employeurs et les travailleurs et les travailleuses de l’Île. La Commission accorde la plus haute importance à l’excellence du service. Tous les deux ans, nous interrogeons en alternance nos partiesprenantespoursavoirdequellemanièrenouspourrionsaméliorernosservices.Noussommesheureuxd’annoncerqueles résultats de notre sondage sur les travailleuses et travailleurs accidentéspour2010indiquentundegrédesatisfactionglobalélevéde70,3%relativementauxservicesdelaCommission.En2010,nous avons poursuivi la mise en place des fondements de notre infrastructured’affairesélectroniquesafind’augmenterleniveaudecommodité et d’accessibilité pour les employeurs, les travailleurs et les travailleuses et les fournisseurs de soins de santé.

Bienqu’ellesoituneorganisationindépendante,laCommissionn’estefficacequegrâceauxpartenariatsqu’elleétablitavecsespartiesprenantesetlescollectivitésqu’ellesert.En2010,lesmembresdela Commission ont continué d’exprimer différents points de vue venant de toutes les régions de l’Île, et ont présenté un ensemble équilibrédeperspectivesvenantdestravailleurs,destravailleusesetdesemployeurspourguiderlespolitiquesetl’orientationdenotreorganisme.Aucoursdel’annéedernière,nousavonsrenforcénos partenariats avec nos parties prenantes internes grâce à une initiative globale liée au personnel visant à améliorer le leadership à tous les niveaux de l’organisation. Dans la province, nous avons poursuivi notre collaboration avec les travailleurs, les travailleuses, les employeurs, les fournisseurs de soins de santé, les éducateurs et les éducatrices de l’Île, et à l’échelle régionale et nationale, avec l’Atlantic Social Marketing Partnership (Partenariat de marketing social de la régionatlantique)etl’Associationdescommissionsdesaccidentsdutravail du Canada.

Finalement,vousaurezconstatéparlalecturedecerapportque2010auraétéuneannéecouronnéedesuccèspourlaCommissiondesaccidentsdutravaildel’Île-du-Prince-Édouard,quiapoursuivitout au long de l’année l’atteinte des objectifs de son plan stratégique.Nousremercionspourleurseffortstousnospartenairesetnospartiesprenantes,cequiinclutlespersonnesœuvrantdanslesdifférentsmilieuxdetravaildel’Îleainsiqu’auseindenotrepersonnel, de la Commission et du Conseil consultatif sur la santé et la sécurité au travail. Nous espérons continuer de travailler ensemble à promouvoir des milieux de travail sécuritaires et à protéger les employeurs et les travailleuses et travailleurs accidentés, comme Meredith l’a imaginé il y a de cela de nombreuses années.

____________________________ Nancy GuptillChair, Workers Compensation Board Président, Commission des accidents du travail

____________________________Carol Anne DuffyChief Executive Officer, Workers Compensation BoardDirectrice générale, Commission des accidents du travail

The Strategic Plan (2007-2012) reflects the mission and values of the Workers Compensation Board (WCB) and focuses on five strategic themes.

Within each theme, key result areas guide specific goals, actions and measures of success. Our results are highlighted for stakeholders by key result area.

Strategic Plan Our Plan, Our Results

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strategic theme: Sharing Prevention Responsibilities

strategic theme: Improving Worker Outcomes

strategic theme: Meeting Service Expectations

strategic theme: Promoting Strength Within

strategic theme: Securing the Future

strategic theme: Sharing Prevention Responsibilities

Course of Action: Theplanthroughout2010fortheWorkersCompensationBoardwastoworkcollaborativelywithemployers,workersandsafetyprofessionalsinhighinjurysectorstorenewthefocusoninjurypreventionandtoenhanceunderstandingofworkplacesafety.

Our course of action in 2010 included: • Continuingtoassesseffortstoeducateworkersandemployersoninjurypreventionandtoimplementeffective education initiatives• ReinforcingtheidentityoftheWorkersCompensationBoardasanorganizationdedicatedtothepromotionof workplacesafety• Identifyingandworkingtowardtargetoutcomesinhighinjurysectors

Results Summary:Completed as of December 2010:√ Identifiededucationneeds,developedworkshopstocomplementexistingpreventionefforts,andpromotedthework shopsthroughtheOHSCalendarofEvents√ Created the Work Out Loudinitiativeforyoungworkers,theiremployersandeducatorstopromotesafeworkpracticesfor thoseenteringtheworkforce√ContinuedregionalsocialmarketingpartnershipwiththeWorkersCompensationBoardofNovaScotiaandtheWorkplace Health,Safety&CompensationCommissionofNewfoundlandandLabradortoproduceandbroadcasttwonewgeneral awarenesscommercials,Tape and Blade and Guard√ Producedaseriesofsafetyvideostoconnectdirectlywithworkplacestogeneratedialogueandinspireactiontoworksafely√ Raisedawarenessoffallprotectionintheconstructionsectorthroughtelevisionadvertising√ EducatedstakeholdersonthenewOccupationalHealthandSafetyRegulationsforaudiometrictesting√ Providedoccupationalhealthandsafetyinstructionandcurriculumdevelopmentforanewfarmtechnicianapprenticeshipprogram√ Evaluated the status and developed recommendations for the Safety Matters corporate identity

11

Measure of Success: • Workersandemployersperceivetheirinjuryprevention education needs are being met.• ThemandateoftheWorkersCompensationBoardfor injurypreventioneducationisendorsedbyworkers and employers.• Astrategyforreducingrecurringworkplaceinjurieshas been implemented.• Incidentsofrecurringworkplaceinjuriesarebeing monitored.• Workersandemployersinhighinjurysectorsrecognize the value of the internal responsibility model for improving outcomes.

Key Result Area: Injury PreventionThe Workers Compensation Board recognizes that preventionisthemosteffectivewaytominimizetheoverall emotional, physical, and financial burden of workplaceinjuries.Aneffectiveinjurypreventionprogramdependsonworkers,employersandtheWorkersCompensation Board each understanding their role in makingPrinceEdwardIslandasafeplacetowork.

12

Key Statistics: Injury Prevention

Number of Adjudicated Claims

Injury Frequency (per 100 FTE’s)

total adjudicated claims: Total number of claims adjudicated for entitlement to benefits. (Adjusted due to the restatement of fatalities.)temporary Wage loss: Claims received where, as a result of a workplace injury, compensation for wage loss is paid to a worker.medical aid only: Claims received where, as a result of a workplace injury, a worker does not lose wages but does receive medical aid which is paid on behalf of the worker by the Workers Compensation Board.fatalities: Claims received as a result of a workplace fatality. (Reporting method changed for consistency with national standards)denied: Claims received and determined not eligible for workers compensation system benefits under the Workers Compensation Act.

2006 2007 2008 2009 2010total adjudicated claims 1994 1903 1971 1778 1751temporary Wage loss 809 862 866 830 810medical aid only 1043 904 955 790 859fatalities 1 3 2 2 0denied 141 134 148 156 82

2000

1500

100

500

0

1994 1903 19711778

injury frequency: The injury frequency rate is calculated by dividing the number of claims by the number of full-time employees in a given year. A full-time employee or full-time equivalent (FTE) is defined as an employee who works the equivalent of 35 hours per week.

1751

2005 2006 2007 2008 2009

1.421.35 1.37 1.35

2.0

1.5

1.0

0.5

0

1.33

Workplace Health and Safety Inspections

2006 2007 2008 2009 2010

2500

2000

1500

1000

500

0

17461970

1871

2488

2259

13

Workplace Health and Safety Workshops and Presentations

Top Five Anatomical Areas of Injury

in jur y prevent ion .. .

depends on workers, employers and the Workers Compensation Board

each understanding their role in making Prince Edward Island a safe place to work.

400

300

200

100

0 2006 2007 2008 2009 2010

317

238

165152

208

0% 10% 20% 30%

Back 28%

Multiple Body Parts 11%

Shoulders 10%

Legs 8%

Fingers 8%

Top Five Industries having Workplace Injuries

Health and Social Service Industries 24%

Manufacturing Industries 20%

Construction Industries 12%

Retail Trade Industries 8%

Hospitality Industries 4%

0% 5% 10% 15% 20% 25%

strategic theme: Improving Worker Outcomes

Course of Action: Buildingonthedefinedcriteriaforidentifyingworkerswithsofttissueinjuriesandtheprocessformanagingclaims,theplansfor 2010 focused on:

• Educationabouttheprocess• Rolesandresponsibilitiesinsofttissueinjurymanagementtoachievesuccessfuloutcomes• EvaluationoftheusefulnessofinjuryspecificinformationdevelopedbytheWorkersCompensationBoard

Results Summary:Completed as of December 2010:√AmendedtheWCBreturntoworkprocedurestoincluderesponsibilitiesandactionareasforthemanagementofsoft tissue shoulder injuries√ EngagedaReturntoWorkServicesCoordinatortoworkincollaborationwithemployersandinjuredworkerstopromote timelyandsafereturntowork√ Producedcommunicationmaterialstosupporteffectivereturntoworkprograms,includingarevisedReturntoWork Workplace Guide and the Bridge to Recovery poster√ Provided training and education for WCB staff on soft tissue injury management√Developedandimplementedacommunicationplanforthedisseminationofsofttissueinjurymanagementtoworkers, employers, and health care providers√ Developed a critical path for shoulder soft tissue injury management to identify critical points, success factors, and treatment standards for health care providers, for the management of soft tissue injury claims√ Developed and distributed fact sheets for a variety of soft tissue injuries to the shoulder

14

Measure of Success: • Aprocessformanagingsofttissueinjuryclaimshas been developed.• Staff,employers,andhealthcareprovidersunderstand the process and respective roles and responsibilities for managing soft tissue injury claims.• Softtissueinjuryclaimsarebeingidentifiedanda process for managing soft tissue injury claims is being used.• Workerswithsofttissueinjurieshavemoresuccessful outcomes.

Key Result Area: Improving Outcomes for Workers with Soft Tissue InjuriesOverfiftypercentofallclaimsfiledwiththeWorkersCompensation Board are the result of soft tissue injuries. The Workers Compensation Board is committed to effectivecasemanagementforallinjurytypes;however,afocusedapproachwhichwillenhancethesafeandtimelyreturntoworkforworkerswithsofttissueinjuries is essential.

o v e r 5 0 %

of all claims filed with the Workers Compensation Board are the result of soft tissue injuries ... a focused approach

which will enhance the safe and timely return to work for workers with soft tissue injuries is essential.

15

Average Claim Duration (days)

Nature of Injury

Key Statistics: Improving Worker Outcomes

$ Benefit Payments (in thousands)

Number of Workers Receiving Extended Benefits

Benefit payments: Benefit payments in any given year are associated with either injuries which occur in that year or injuries that have occurred in previous years.

20000

16000

12000

8000

4000

0 2006 2007 2008 2009 2010

TOTAL 11,760Extended Wage Loss 4,403

Rehabilitation 570

Health Care 3,518

Temporary Wage Loss 3,269

TOTAL 12,808

Extended Wage Loss 4,905

Rehabilitation 485

Health Care 3,712


TOTAL 14,022


Rehabilitation 451

Health Care 4,341


TOTAL 14,565


Rehabilitation 548

Health Care 4,546


TOTAL 16,050


Rehabilitation 637

Health Care 4,690


Burns 2%Sprains, strains 64%

Fractures 9%Bruises, contusions 8%

Cuts, lacerations 8%

Other 6%

Repetitive Motion 3%

Multiple 2%

40

30

20

10

0

29.42 28.1130.73 30.83 30.83

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

1200

1175

1150

1125

1100

1169

1137

11201127

1110


Course of Action: Building upon the efforts to establish standards for claim processing effectiveness for Workers Compensation Board staff, employersandworkers,theplansfor2010weretocontinueworkonclaimprocessingimprovementsthroughaniterativemethod of identification, implementation and evaluation.

Results Summary:Completed as of December 2010:√ Identifiedclaimprocessingstandards√ Developed and implemented intervention strategies aimed at meeting or exceeding claims processing standards√ Documented the priority business processes for extended benefits claims processing√ Developed recommendations for improvements to processing of extended benefits claims√ Collected preliminary baseline data to enable claim processing performance management

16

Measure of Success: • WorkersCompensationBoardstaff,employers, workersandserviceprovidershaveparticipatedin the identification of standards for claim processing effectiveness.• Priorityclaimprocessingstandardshavebeenidentified and communicated.• Claimprocessingeffectivenesshasimproved.

Key Result Area: Service DeliveryMeetingservicedeliveryexpectationswillalwaysbecritical to the success of the Workers Compensation Board. Past stakeholder survey results indicate that improvingclaimprocessingeffectivenesswillhavethegreatestimpactintermsofstakeholdersatisfactionwithservicesdelivered by the Workers Compensation Board.

Key Statistics: Service Delivery

Customer Liaison Complaint CallsAverage Calendar Days from Report of Accident to First Payment

30

25

20

15

10

5

0

20.43 21.02

23.67 23.69

18.39

10

7.5

5

2.5

0

10

6

9

2

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

3

improving claim processing .. .

will have the greatest impact in terms of stakeholder satisfaction with services delivered by the Workers Compensation Board.

17

Employer SurveyService Satisfaction Index

Injured Workers SurveyWCB Performance Index

75

70

65

73.4

75.774.9

77.2

2003 2005 2007 2009 2002 2004 2006 2008 2010

68.5

72.5

69.7 70.3

75

70

65

70.2

Internal Reconsideration

Appeals Received

Appeals Denied

Appeals Withdrawn

Appeals Accepted

Appeals Dismissed

Appeals Decision Pending

140120100

80604020

0

68

95108

132

74

120100

80604020

0

48 52 54

108

46

3025201510

50

11

21 2219

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

23

5

4

3

2

1

0

3 3

1

3 3

40

30

20

10

010

17

37

25

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

12

15

12

9

6

3

0

7

1211

14

2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

9


Course of Action: ContinuingwithservicedeliveryimprovementsforworkersandemployersthroughtheincorporationofE-businessintoWorkersCompensationBoardworkflowandcomputersystems,effortsin2010werefocusedonestablishingastrongfoundation for E-business services.

Results Summary:Completed as of December 2010:√ ImplementedanE-businessinfrastructure√DesignedandimplementedaservicedeliveryframeworkforE-business√ IdentifiedE-servicepriorities√ InitiatedthedevelopmentofanE-businessstrategytoguidethedevelopmentandimplementationofE-business√ Developed 3 -5 year strategy for the phased implementation approach of online services, representative of WCB interactionswithclientsandexternalstakeholders

Measure of Success: • AsecureE-businessinfrastructureisinplace.• E-businessserviceshavebeenintroduced.• AnInformationTechnologyBusinessPlanhasprioritized E-businessrequirements.• E-businessisavailabletostakeholdersinasecure,well supported environment.• E-businessservicesarebeingusedbystakeholders.

Key Result Area: Information Technology (IT)Technology continues to evolve at a rapid pace. The Workers Compensation Board recognizes the potential of theInternetfordeliveringcoreservicestoclients.Overthenextfiveyears,theWorkersCompensationBoardwillrollout an E-business strategy providing secure and easy to use web-basedservicesforclientswhoprefertheconvenienceof online access.

18

... will roll out an E- business strategy providing secure and easy to use

web-basedservices.

strategic theme: Promoting Strength Within

Course of Action: In2010,wecontinuedoureffortstoensurethatallWCBteammembershaveasenseofaccomplishmentandfeelvalued,supportedandrecognizedfortheworktheydothrougharenewedfocusonleadershipandapositiveworkplaceculture.

Our course of action in 2010 included: • Providingsupportforstaffprofessionalgrowth• Implementingandmonitoringtheuseofperformancedevelopmentandevaluationstandardsbysupervisors• Fosteringacultureofcorporatewellness

Results Summary:Completed as of December 2010:√Coordinatedaninitiativetobuildworkplacecultureatalllevelsoftheorganization√ Coordinated an initiative to support leadership development √ Coordinated an initiative to support management/supervisory development √ Initiatedidentificationofnextstepsintheassessmentanddevelopmentofessentialcorecompetenciesfortheleadership team, managers and supervisors√ Engagedinresearchanddevelopmentforaprocesstoevaluatetheeffectivenessofthenewperformancedevelopmentapproach√Identifiedandimplementedcorporatewellnessstrategyinitiatives√Providedandappliedrecommendationstosupportacorporatewellnessculture

Measure of Success: • Employeeshaveparticipatedinareviewof performance development and evaluation methods.• Performancedevelopmentandevaluationprocedures have been documented.• Supervisorshavebeentrainedonperformance development,evaluationprocedures,andtechniques for giving and receiving feedback.• Employeesatisfactioninareasspecifictoreceiving support and recognition has improved.

Key Result Area: Human ResourcesAqualified,committed,andmotivatedstaffisclearlythemostvaluableresourcewithinanyorganization.TheWorkers Compensation Board must create an environment wherestaffbelieveintheworktheydo,havethetools,knowledgeandsupporttheyneed,andarechallengedtocontribute to ongoing improvement and positive change withintheorganization.

Key Statistics: Human Resources

19

Investment in Employee Development$70,000$65,000$60,000$55,000$50,000$45,000$40,000

2006 2007 2008 2009 2010

$46,281

$69,305

$62,744

$50,255

$60,719


Course of Action: Inadditiontoourongoingeffortstoenhanceunderstandingofthefundingstrategyandfundingpolicy,andtomaintainfunding targets, our course of action in 2010 focused on monitoring the impact of changing accounting standards on the WCB’s financial position.

Results Summary:Completed as of December 2010:√ContinuedparticipationintheAssociationofWorkersCompensationBoardsofCanadaworkinggrouponthe implementationofInternationalFinancialReportingStandards√ IdentifiedtheimpactsofInternationalFinancialReportingStandardsforfinancialreportingforyearend2009and2010

20

Measure of Success: • Thefundingstrategyhasbeenamended.• Afundingpolicyhasbeendeveloped.• Fundingtargetsarebeingmaintained.• Changingaccountingstandardsarebeingmonitored and potential impacts identified.

Key Result Area: FinancialLongtermsustainabilityoftheworkerscompensationsystemonPrinceEdwardIslanddependsonsoundfiscalmanagement, stringent audit standards, full funding policies, and transparent financial reporting. The Workers Compensation Board is committed to protecting the futureoftheworkerscompensationsystemonbehalfofIslandworkersandemployers.

Key Statistics: Financial

Average Assessment Rate

$2.40

$2.30

$2.20

$2.10

$2.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

$2.24

$2.29

$2.39 $2.39

$2.33

$2.23 $2.22

$2.15 $2.15$2.16

21

Long term sustainability of the workers compensation system on Prince Edward Island depends on sound

fiscal management,stringent audit standards, full funding policies, and transparent financial reporting.

Investment Return (Percentage)*

Funded Position (Percentage)

Investment returns - Smoothed:Recognizing gains and losses of investments over five years rather than recording them entirely in the year they occur.

Investment returns - Fair Market Value:Recognizing gains and losses of investments in the year they occur.

Smoothed

Fair Market Value

Smoothed Fair Market Value

20%15%10%

5%0%

-5%-10%-15%-20%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-0.28%

4.51%

-5.60%

2.26%

12.38%

4.04%

8.92%

3.89%

9.47%

4.44%

13.32%

7.24%

-0.44%

6.24%

-17.98%

0.57%

18.08%

2.50%

10.68%

3.12%

120%

110%

100%

90%

80%

70%

60% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

69% 70%74%

70%

78% 80%83%

88%91%

100%96%

110%

103%

110%

102%

89%

104% 104%108%

114%

Target Asset Mix

Fixed Income ,Universe Bonds 17%

Fixed Income, Long Bonds 8%

Equities, Canadian 20%

Equities, US 18%

Equities, International 18% Equities, Emerging Markets 4%

Liability-Hedged Investments, Real Estate 10%

Liability-Hedged Investments, Real Return Bonds 5%

22


Course of Action: Theongoingfocusfor2010wasonlegislationandregulationswhichfairlyreflecttheinterestsandneedsofallstakeholders,whilerecognizingtheneedforprogramsustainability.

Our course of action in 2010 included: • RecommendingamendmentstotheOccupational Health and Safety Act Regulations • SupportingWorkers Compensation Act legislative and regulatory change processes• Establishingpoliciesandproceduresinsupportoflegislationandregulationswhichfairlyreflecttheneedsofstakeholders

Results Summary:Completed as of December 2010:√ ParticipatedontheOccupationalHeathandSafetyAdvisoryCouncil,whichreviewedandrecommendedamendmentsto the Occupational Health and Safety Act Regulations for first aid√ Conductedacomprehensivereviewandevaluationoftheexistingemployerclassification,rategroupstructure,andmethodology√ConsultedwithIslandemployersandemployergroupsonproposedenhancementstotheemployerclassificationsystem√ PreparedforimplementationofimprovementstotheemployerclassificationsystemtomakeitfairerforallIsland employerseffectiveJanuary1,2011

Measure of Success: • LegislativeAdvisoryCommitteerecommendations on proposed Workers Compensation Act amendments have been documented and presented to the Board of Directors.• Occupational Health and Safety Act regulatory priorities have been identified.• Workers Compensation Act amendments have been presented to Government.• PriorityOccupational Health and Safety Act regulations have been presented to Government.• Legislativeandregulatorychangeshavebeen implemented.

Key Result Area: LegislationThe Workers Compensation Board is responsible for administration of the Workers Compensation Act and the OccupationalHealthandSafetyAct.

Provisions in the Workers Compensation Act mandate acomprehensiverevieweveryfiveyears.TheWorkersCompensation Board must facilitate a fair and consultative processresultinginrecommendationsforchangewhichbalancetheneedsofworkers,theneedsofemployers,andthe fiscal responsibilities of the Workers Compensation Board.

Meetingdemandsforregulatoryamendmentswithintheoccupationalhealthandsafetylegislationwillremainapriority for the Workers Compensation Board over the nextnumber of years.

Legislative and regulatory review ... a

fair and consultativeprocess resulting in balance.

23


Course of Action: In2010,effortscontinuedtoensurethattheorganizationispreparedtoprovideessentialservicesintheeventofanymajorbusiness disruption.

Results Summary:Completed as of December 2010:√ Developed a recovery plan for each essential service√ Compiled the Business Continuity Planning Document√ Executed a business continuity table top exercise√ Examined the business continuity process, enterprise assessment phase recommendations and suggestions, and document status

The Workers Compensation Board believes that

mission critical servicesmust be available to clients should an unforeseen event cause a disruption in normal business operations.

Measure of Success: • Abusinesscontinuityriskworkinggroupisinplace.• Missioncriticalserviceshavebeendocumented.• ABusinessContinuityPlanhasbeenformalizedand communicatedtostaffwithintheWorkers Compensation Board.• ProceduresforBusinessContinuityPlanmaintenance are in place.

Key Result Area: Business Continuity PlanningBusiness continuity planning is a proactive planning approachwhichensuresthatessentialservicesareprovided during a disruption of business. The Workers Compensation Board believes that mission critical services must be available to clients should an unforeseen event cause a disruption in normal business operations.

24

At a GlanceKey Statistical Measures

KEy STATISTICAL MEASuRE 2009 2010

Workers Claims adjudicated

Claims accepted

Claims denied

Temporarywagelossclaims

Medical aid only claims

Fatalities

Maximum annual earnings level

Average calendar days from report of accident to first payment

Average claim duration (days)

Employers Assessable payroll (in millions)

Assessment revenue (in millions)

Average assessment rate (per $100 assessed payroll)

Maximum assessable earnings

Number of assessed employers

Prevention Workplace health and safety inspections

Complaint investigations

OccupationalHealthandSafetyviolationorders

Serious accident investigations

Workplacehealthandsafetyworkshopsandpresentations

Prosecutions

Finance Benefits liability (in millions)

Fund balance (in millions)

Administration costs (in millions)

Market rate of return on portfolio

Workers Compensation Appeal Tribunal (WCAT) Appeals Appealsinitiatedbyworkers

Appeals initiated by employers

Appeals resolved

1,778 1,751

1,622 1,669

156 82

830 810

790 859

2 0

47,500 47,500

23.69 18.39

30.83 30.83

$1,342.92 $1,599.41

$29.44 $32.05

$2.16 $2.15

$47,500 $47,500

4963 4991

2488 2259

92 62

1489 1783

75 102

152 208

1 0

$127.14 $143.56

$4.86 $20.18

$6.61 $6.84

18.08% 10.68%

44 18

4 5

21 28

25

Financial Statements

preface to the audited financial statements2010 Financial Reporting

Duringthe2004year,allWorkersCompensationBoardsinCanadawererequiredtochangetheirinvestmentaccountingpolicyintheirfinancialstatementsasaresultofnewstandardsintroducedbytheCanadianInstituteofCharteredAccountants.Investmentsmustnowberecordedattheirfairvaluewhichisessentiallytheirmarketvalue.

Under the old policy, Workers Compensation Boards in Canada had smoothed gains and losses on the sales of investments overfiveyearsratherthanrecordingthementirelyintheyeartheyweresold.TheresultofdoingthiswastoreducethevolatilityexperiencedintheBoard’sfinancialresultsastheannualinvestmentincomewasmorecomparabletothelongtermrate of return than rates experienced over the short term. This gave stability to assessment rates and ensured that annual assessmentrateswerenotsetbasedonvolatileannualinvestmentreturns.

Underthenewpolicy,gainsandlossesarerecognizedintheyeartheyoccur.Thisintroducesasignificantamountofvolatilityto the Board’s financial results. As is outlined in the 2010 financial statements, the Board’s financial results for the 2010 year were$9.2millionbetterthantheywouldhavebeenundertheoldinvestmentpolicy.

TheBoard’sfundedpercentage,asdeterminedonitstraditionalmethodofrecordinginvestmentswas107.6%attheendof2010comparedwith103.9%attheendof2009.Theadoptionofthenewaccountingstandardsforinvestmentsresultsinafundingratioattheendof2010of113.8%.

The Board cannot use an accounting policy alone to drive its key business decisions. Assessment rates for employers and benefitlevelsforinjuredworkerscannotbebasedonshort-term,annualinvestmentgainsorlosses,whichbytheirnature,areunpredictableandnotguaranteedtobesustainedoverthelongterm.TheBoard’sfinancialcapacitytolowerratesorincreasebenefits has to continue to be based on the long-term expectation for investment returns. As a result, the Board intends to continue setting assessment rates based on the long-term expected rate of return rather than short-term results.

In2002,theBoardimplementedafundingstrategytoaddressretirementoftheunfundedliabilityasatDecember31,2001.In2007,theBoardreplacedthisfundingstrategywithafundingpolicywhichrecognizescurrentfundinglevelsandisaimedatmaintaining a financial position of fully funded.

The primary goals of the funding policy are to minimize the risk of becoming unfunded, thereby ensuring there is sufficient moneyavailableforpaymentofcurrentandfutureworkerbenefits;minimizecostvolatilityforemployerssothattheoverallaverageassessmentrateforthecurrentyearwillnotvarysignificantlyoverthepreviousyear’soverallaverageassessmentrate; minimize the total cost charged to employers by ensuring the funded status is appropriate in relation to financial needs; ensure today’s employers pay for the current and future cost of today’s accidents.

Thefundingpolicywilltargetafundingstatusintherangeof100%-110%andincludesspecificadjustmentstobeappliedtothe assessment rate setting process should the funding status fall outside this range.

We expect the Board to maintain strong financial results despite fluctuations and erratic movements of the investment market. Wewillalsocontinuetobeprudentwhenrecognizinginvestmentgainsandlossesoverareasonabletimeperiodwhensetting rates and evaluating the funding strategy.

26

35

ACTUARIAL CERTIFICATE

We have completed an actuarial valuation of the benefits liabilities for insured employers under the Workers Compensation Act of Prince Edward Island as at December 31, 2010. The purpose of the valuation is to provide adequate and appropriate estimates of the present value of future benefit obligations for inclusion in the Board’s 2010 financial statements. Our estimate of the benefits liabilities of $143,561,000 represents the actuarial present value, at December 31, 2010, of expected benefit payments and their associated administrative costs, which will be made in future years, and which relate to claims arising from events that occurred on or before December 31, 2010. The liability includes obligations assumed from the Province of Prince Edward Island, as a result of the Province changing from a self-insured to an insured employer. As in previous valuations, the benefits liabilities do not include any provision for future claims related to occupational disease. No allowance has been made for any possible future deviations from the present policies and practices of the Board or for the extension of new coverage types. All liabilities have been calculated using an underlying assumption of a 3.5% real rate of return on invested assets. The Consumer Price Index is estimated to increase at a rate of 3.5% per annum. The liabilities in respect of temporary wage loss, lump-sum payments, hospital, medical aid, and rehabilitation benefits have been determined from projections of future claim payments. These projections have been based on factors developed from the Board's claims experience and average benefit payments in recent years. Additional information regarding our actuarial valuation is provided in our more detailed valuation report to the Board. We have reviewed the data which were used for the valuation to test for reasonableness and consistency with the data available from other sources. In our opinion, the data are sufficient and reliable for the purpose of this valuation.

In our opinion, the actuarial assumptions are appropriate for the purpose of the valuation and the methods employed are consistent with sound actuarial principles. Our valuation report has been prepared and our opinions have been given in accordance with accepted actuarial principles.

Paul G. Conrad FCIA, FSA, MAAA Eckler Ltd. February, 2010 2011

27

28

Audit • Tax • Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

Independent auditors’ report

To the members of the Board of the Workers Compensation Board of Prince Edward Island We have audited the accompanying financial statements of the Workers Compensation Board of Prince Edward Island, which comprise the balance sheet as at December 31, 2010, the statement of operations, fund balance and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Board’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting

Audit • Tax • Advisory Grant Thornton LLP. A Canadian Member of Grant Thornton International Ltd

estimates made by management, as well as evaluating the overall presentation of the financial statements.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of the Workers Compensation Board of Prince Edward Island as at December 31, 2010, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Charlottetown, Prince Edward Island

March 24, 2011 Chartered Accountants

3

Workers Compensation Board of Prince Edward Island Statements of operations and fund balance Year ended December 31 2010 2009

Revenues Current assessments $ 32,053,442 $ 29,443,082 Self-insured employers (Note 12) 783,276 2,147,976 Investments (Note 4) 13,231,909 18,057,098 Recoverable administration fees and interest charges to self-insured employers (Note 12) 253,981 791,643

46,322,608 50,439,799Expenditures Expected increase (Note 11) 9,674,000 8,460,000 Changes in actuarial assumptions and methodology (Note 11) 936,000 (1,564,000) Experience (gains) losses (Note 11) (3,804,000) 593,000 Claims and administrative costs incurred (Note 11) 17,093,000 15,512,000 Other experience gains (Note 15) (957,342) - Claims costs incurred for self-insured employers (Note 12) 783,276 2,147,976

23,724,934 25,148,976

22,597,674 25,290,823

Administration (Page 20) 6,835,883 6,607,181 Workers’ Advisor Program (Note 9) 141,083 148,349 Employers’ Advisor Program (Note 9) 133,862 130,690 Appeals Tribunal (Note 9) 171,726 151,033

7,282,554 7,037,253

Excess of revenues over expenditures $ 15,315,120 $ 18,253,570

Fund balance (unfunded liability), beginning of year $ 4,862,828 $ (13,390,742)

Excess of revenues over expenditures 15,315,120 18,253,570

Fund balance, end of year $ 20,177,948 $ 4,862,828

See accompanying notes to the financial statements

.

29

(Page 46)

4

Workers Compensation Board of Prince Edward Island Balance sheet December 31 2010 2009

AssetsCash and cash equivalents $ 9,002,574 $ 6,052,597 Receivables (Note 3) 1,034,017 1,478,892 Investments (Notes 2, 4 and 5) 152,393,484 122,059,282 Capital assets (Note 6) 2,185,244 2,287,285 Intangible assets (Note 7) 1,915,960 1,984,089

$ 166,531,279 $ 133,862,145

Liabilities and fund balance

Payables and accruals $ 1,890,731 $ 1,058,517 Employee future benefits (Note 10) 901,600 802,800 Benefits liabilities (Note 11) 143,561,000 127,138,000

146,353,331 128,999,317

Fund balance (Note 14) 20,177,948 4,862,828

$ 166,531,279 $ 133,862,145

Contingent liabilities (Note 13)

On behalf of the Board

Chair

Chief Executive Officer

See accompanying notes to the financial statements.

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Workers Compensation Board of Prince Edward Island Statement of cash flows Year ended December 31 2010 2009

Cash flow from operating activities

Cash received from: Assessed employers $ 32,746,697 $ 28,574,579 Deposit from Province of Prince Edward Island from assumption of benefit liabilities (Note 15) 14,064,000 - Self insured employers for assessments 922,626 2,207,220 Investments and other 3,185,040 2,927,663

50,918,363 33,709,462 Cash paid: To claimants or third parties on their behalf (19,516,985) (19,003,976) For administration requirements and other goods (2,513,099) (1,580,133) For salaries to employees (5,224,950) (5,069,083)

(27,255,034) (25,653,192)

Net cash provided by operating activities 23,663,329 8,056,270

Cash flow from investing activities

Cash received from: Sale of investments 86,222,478 40,110,352

Cash paid for: Purchase of investments (106,525,268) (44,253,570) Purchase of capital assets (410,562) (631,382)

(106,935,830) (44,884,952)

Net cash used in investing activities (20,713,352) (4,774,600)

Net decrease in cash and short term investments 2,949,977 3,281,670

Cash and cash equivalents

Beginning of year 6,052,597 2,770,927

End of year $ 9,002,574 $ 6,052,597

See accompanying notes to the financial statements.

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Workers Compensation Board of Prince Edward Island Notes to the financial statements December 31, 2010

1. Nature of operations

The Workers Compensation Board of Prince Edward Island (“the Board”) was established by the Prince Edward Island Legislature in 1949 under the Workers Compensation Act. The Board has a mandate for the administration of a workers’ compensation system as defined by the Workers Compensation Act and for the administration of health and safety programs as defined by the Occupational Health and Safety Act.

The nature of operations includes administering payments of benefits to or on behalf of workers, levying and collecting assessment revenues from employers, investing Board funds, inspecting Prince Edward Island workplaces, enforcing health and safety standards defined by legislation and delivering health and safety education and prevention programs. The current Workers Compensation Act became effective on January 1, 1995. The current Occupational Health & Safety Act became effective on May 20, 2006.

The Board does not receive government funding.

2. Summary of significant accounting policies

Basis of presentation The financial statements of the Board have been prepared in accordance with Canadian Generally Accepted Accounting Principles (GAAP).

Cash and cash equivalents Cash and cash equivalents include cash on hand and balances with banks. Cash and short term investments held by custodians for investment purposes are not available for general use, and accordingly are included in investments.

Assessment revenues Assessments are billed when employers file their insurable payroll for the current assessment year. Assessment revenues for the year are recognized on an estimated basis as insurable payroll is incurred. For employers who have not filed, assessments are estimated.

Self-insured employers are subject to individual responsibility for costs attributable to claims arising from their employees, as well as administration expenses incurred on behalf of the self-insured employers. As such, assessment revenues from self-insured employers are recognized as these costs are incurred.

Accrued assessments receivable At the beginning of each year, an assessment is levied on non-monthly employers by applying industry assessment rates to their estimated payrolls. During the year, employers’ actual payrolls may vary from their estimate; therefore, at year end, accrued assessments receivable are adjusted based on payroll adjustments from the prior year. The accrued assessments are determined excluding those employers whose assessments are levied on a monthly basis.

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2. Summary of significant accounting policies (cont’d)

InvestmentsThe Board has classified its investments as held for trading. As such, investments are recorded at their fair value. The Board recognizes interest revenue as earned, dividends when declared and investment gains and losses when realized. Realized gains and losses represent the difference between the amounts received through the sale of the investments and their respective cost base. Unrealized gains and losses on held for trading investments are recognized at year end based on the fair value of the investments. Transaction costs are recognized as an expense in the statement of operations. Direct investment expenses such as external custodial and management fees are netted against investment income.

Fair values of investments are determined as follows:

• Equities are valued at their year end quoted market prices as reported on recognized public securities exchange.

• Fixed-term investments are valued at their year end closing or bid price based on available public quotations from recognized dealers in such securities.

• Commercial paper, short term notes and treasury bills and term deposits maturing within a year are valued at either their year end closing or bid price based on available quotations from recognized dealers in such securities, or cost plus accrued interest, which approximates fair value.

• Pooled fund units are valued at their year end net asset value, as determined by the fund manager or administrator. These values represent the Board’s proportionate share of underlying net assets at fair values determined using either quoted market prices or year end closing market prices or the average of the latest bid/ask prices based on available public quotations from recognized dealers in such securities.

• Forward foreign exchange contracts are valued at their net unrealized gain or loss, based on quoted market exchange rates at the balance sheet date.

• Real estate is originally recorded at cost from the date of acquisition until receipt of the first appraisal. After receipt of the first appraisal, they are recorded at their most recent external appraisal value. Real estate investments are appraised annually by qualified external real estate appraisers.

Foreign currenciesAssets denominated in foreign currencies are translated into Canadian dollars at exchange rates prevailing at the balance sheet date. Income from these assets is translated at the rate in effect at the time the income is received.

Realized exchange gains or losses are included in investment income and recognized in the period earned. Unrealized exchange gains or losses resulting from the translation of foreign currency denominated asset balances are recorded in investment income in the period in which they arise.

Capital assetsProperty and equipment are reported at cost and are depreciated over their estimated lives on the straight line basis for building and on the declining balance basis for furniture and fixtures and computer equipment. Assets are depreciated at 50% of the applicable rate in the year of acquisition. The rates used are as follows:

Building 40 years, straight line Furniture and fixtures 10%, declining balance Computer equipment 20%, declining balance

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IntangiblesIntangible assets of internally developed software are recognized based on the criteria in CICA Handbook Section 3064, “Goodwill and Intangible Assets”. Research and development costs incurred prior to the establishment of the technological and financial feasibility of particular software project are expensed as incurred. Software development costs are capitalized and recognized at cost when the Board can demonstrate the technical and financial feasibility of completing the asset will result in a useable intangible asset with future economic benefits for the Board. Internally developed intangibles include the cost of software tools and licences used in the development of the Board’s software programs, as well as all directly attributable payroll and consulting costs.

Internally developed software is amortized 20% per year on the declining balance basis.

Employee future benefits Permanent employees of the Board participate in a defined benefit pension plan sponsored by the Province of Prince Edward Island. As these multi-employer plans meet the accounting requirements for treatment as defined contribution plans, the current year employer contributions are accounted for as current pension expense.

The cost of retirement pay benefits earned by employees is actuarially determined using the projected unit credit method pro rated on service. Benefits are projected with management’s best estimate of salary escalations to retirement and then pro-rated based on service.

Benefits liabilitiesAn independent consulting actuary completes a valuation of the components of the benefits liabilities of the Board on an annual basis.

The benefits liabilities represent the actuarial present value of all future benefit payments expected to be made for claims which occurred in the current fiscal year or in any prior year. The benefits liabilities include provision for all benefits provided by current legislation policies and administrative practices in respect of existing claims.

The Board believes that the amount provided for benefit liabilities as at December 31, 2010 is adequate, recognizing that actuarial assumptions as disclosed in Note 11 may change over time to reflect underlying economic trends. When they do, it is possible to cause a material change in the actuarial present value of the future payments.

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Accounting estimates and measurement uncertainty The preparation of financial statements in conformity with GAAP requires the use of estimates as at the date of the financial statements that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities and the reported amounts of revenues and expenses during the reporting periods presented.

Measurement uncertainty exists when there is a variance between the recognized amount and another reasonable amount. Some accounting measurements require management’s best estimate, based on assumptions as at the financial statement date that reflect the most probable set of economic conditions and planned courses of action.

Benefit liabilities, employee future benefits, accrued assessments, allowance for doubtful accounts and depreciation are the most significant items that are based on accounting estimates. Actual results could differ from the estimates made by management in these financial statements, and these differences, which may be material, could require adjustment in subsequent reporting periods.

Changes in accounting policies

Recent accounting pronouncements In January 2010, CICA Handbook Section 1582, “Business Combinations”, was issued replacing the former CICA Handbook Section 1581, “Business Combinations”. This section establishes standards for the accounting for a business combination under the acquisition method. This new section applies prospectively to business combinations for which the acquisition date is on or after the first annual reporting period beginning after January 1, 2011. Management does not anticipate that this section will have a material impact on its financial statements.

The Accounting Standards Board announced on February 13, 2008 that International Financial Reporting Standards (IFRS) will be required in 2011 for publicly accountable enterprises. The changeover date is for annual financial statements relating to fiscal years beginning on or after January 1, 2011. IFRS uses a conceptual framework similar to Canadian GAAP, but there are significant differences in recognition, measurement and disclosure requirements. As a result, the Board has established a changeover plan to convert to these new standards within the time frame indicated above. An implementation team has been created and third party advisors have been engaged to provide support to the Board’s staff. The Board has completed its analysis of IFRS and has concluded that the initial impact to the financial position and results of operations are not significant. However, there will be extensive enhancement to the note disclosures as required under IFRS.

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3. Receivables 2010 2009

Assessments $ 1,383,152 $ 1,186,993 Accrued assessments (435,250) 81,891 Other 86,698 71,241 Self-insured employers (583) 138,767

$ 1,034,017 $ 1,478,892

4. Investments 2010 2009

Cash and short term investments $ 2,171,516 $ 2,282,082 Forward foreign exchange contracts 754,635 437,382 Real estate 9,700,811 - Fixed term investments 44,055,326 40,390,929 Equities 95,711,196 78,948,889

$ 152,393,484 $ 122,059,282

Investment income (loss)Earned during the year, net of portfolio management expenses $ 3,200,497 $ 2,925,529 Realized investment gains (losses) 1,029,290 (2,550,644) Unrealized investment gains 9,002,122 17,682,213

$ 13,231,909 $ 18,057,098

Investment agreement The Board has entered into an Investment Agreement (January 1995) for the management of its investment assets with those of Worksafe NB. These financial statements report the Board’s proportionate share of the investment assets held in the pooled fund which was 13.1% at December 31, 2010 (2009 – 12.3%). The Board pays a fee to Worksafe NB for the administration of the combined investments.

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5. Financial risk management

The Board has established policies for management of its investments. All of the Board’s pooled investments are managed by independent, external investment managers. The compliance of these managers with the established policies is monitored on a regular basis. The pooled investments are managed to reduce investment risk by diversifying its portfolio among asset classes, industry sectors, geographic locations and individual securities. Further diversification is achieved by selecting investment managers with varying investment philosophies and styles. From time to time, in conjunction with WorkSafe NB, independent consultants are retained to advise on the appropriateness and effectiveness of its investment policies and practices.

The following sections describe the Board’s financial risk exposure and related mitigation strategies.

Market risk The Board invests in publicly traded equities listed on domestic and foreign exchanges, and bonds traded over the counter through broker dealers and Canadian commercial real estate held via pooled funds. These securities are affected by fluctuations in market prices. Such market changes are subject to economic factors and other fluctuations in domestic and global capital markets, as well as risks to issuers, which may affect the market value of individual securities. Policy guidelines have been established to ensure that the Board’s investments are diversified by issuer, industry and geographic location.

The table below indicates the total exposure in each of the equity and real estate mandates within the Board’s portfolio:

2010 2009

Canada equities $ 31,732,122 $ 26,017,415 Unites States equities 30,940,267 25,037,298 International equities 26,258,465 21,753,957 Canadian commercial real estate 9,700,811 - Emerging markets equities 6,780,342 6,140,219

$105,412,007 $ 78,948,889

The table below presents the effect of a change in value of equities and real estate held based on management estimates for each of the equity mandates in the Boards’ portfolio: 2010

Change in market value 15% 5% -5% -15% Impact on fund balance Canadian equities $ 4,760,000 $ 1,587,000 $ (1,511,000) $ (4,139,000) United States equities 4,641,000 1,547,000 (1,473,000) (4,036,000) International equities 3,939,000 1,313,000 (1,250,000) (3,425,000) Canadian commercial real estate 1,455,000 485,000 (462,000) (1,265,000) Emerging markets equities 1,017,000 339,000 (323,000) (884,000)

2009

Change in market value 15% 5% -5% -15% Impact on fund balance Canadian equities $ 3,903,000 $ 1,301,000 $ (1,239,000) $ (3,394,000) United States equities 3,756,000 1,252,000 (1,192,000) (3,266,000) International equities 3,263,000 1,088,000 (1,036,000) (2,837,000) Emerging markets equities 921,000 307,000 (292,000) (801,000)

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5. Financial risk management (cont’d)

Foreign currency risk The Board has certain investments denominated in foreign currencies. Currency risk is the risk that the value of these investments will fluctuate due to changes in foreign exchange rates. For its U.S. and non North American equities, the Board has adopted a policy to hedge 50% of its developed market foreign currency exposure using forward exchange contracts. Forward foreign exchange contracts are agreements to exchange an amount of one currency for another at a future date and at a set price, agreed upon at the contract’s inception. The fair value of these financial instruments would change in response to changes in the foreign exchange rates of the currencies involved in the contracts. The notional amounts in forward foreign exchange contracts are the contractual amounts on which payments are made. These notional amounts have been converted into Canadian dollars at the contractual exchange rates in effect at the inception of the contracts. Outstanding contracts from 2010 mature in the first three months of 2011.

The Board has significant current exposure in the US dollar, the Euro, the Japanese Yen and the British Pound. Exposure to changes in these four currencies represents 90% of the Board’s total exposure to developed market foreign currencies and 80% of the total foreign currency exposure including emerging markets. The Board has holdings of $30,103,000 (2009 - $33,142,000) in US dollar or 25.6% of the portfolio, $7,492,000 (2009 - $6,530,000) or 5% in the Euro, $5,332,000 (2009 - $4,610,000) or 3.5% in the Japanese Yen, and $6,035,000 (2009 - $4,534,000) or 4% in the British Pound.

The table below presents the effects of a 15% appreciation in the Canadian dollar as compared to the US dollar, Euro, Japanese Yen and British Pound on the fund balance:

2010 2009

CAD/USD $ (3,926,000) $ (4,323,000) CAD/EURO $ (977,000) $ (852,000) CAD/YEN $ (695,000) $ (601,000) CAD/POUND $ (787,000) $ (591,000)

At December 31, 2010, the notional value of outstanding forward foreign exchange contracts was $26,425,509 (2009 - $22,543,800). The fair value of these contracts was $754,635 (2009 - $437,382). Unrealized gains on forward foreign exchange contracts of $297,253 (2009 - $437,382) were included in investment income.

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Interest risk management Interest rate risk is the risk that the value of a financial security will fluctuate due to changes in market interest rates. The Board’s investment portfolio is exposed to interest rate risk from its holdings of fixed income securities. Fluctuations in interest rates are managed by varying the duration of the fixed income portfolio.

The table below presents the remaining term to maturity of the Board’s outstanding fixed term investments.

Remaining term to maturity

From 1 year Total Total Within 1 year to 5 years Over 5 years 2010 2009 Fixed term investments (market value) $ - $ 12,476,228 $ 31,579,098 $ 44,055,326 $ 40,390,929

The average effective yield of these fixed term investments is 3.0% (2009 – 3.4%) per annum based on market value.

As of December 31, 2010, had the prevailing interest rate changed by 1%, assuming a parallel shift in the yield curve, with all other variables held constant, the value of the fixed term investments would have increased or decreased by $3,150,000 (2009 - $3,424,000) or approximately 9.4% (2009 – 9.1%) of their value.

Credit risk management Credit risk on fixed term or money market investments or forward foreign exchange contracts arises from the possibility that the counterparty to an instrument fails to meet its obligation to the Board. Policy guidelines have been established to ensure the Board holds corporate fixed term investments with a credit rating of A or higher, and Canadian federal or provincial government fixed term investments with a credit rating of BBB or higher. The Board may only invest in money market instruments that are provincially or federally guaranteed by one of the five largest Canadian chartered banks. Counterparties to forward foreign exchange contracts must have a credit rating of at least AA-. As at December 31, 2010, the aggregate amount of fixed income securities with counterparty ratings of BBB was $44,919 (2009 - $140,652).

The Board is also exposed to credit risk through its trade receivables. The Board mitigates this risk through a regular monitoring process. Credit risk is mitigated due to the large number of customers and their dispersion across geographic areas and various industries. Allowance for doubtful accounts is reviewed at each balance sheet date. The Board updates its estimates of allowances for doubtful accounts based on customer history.

Fair value hierarchy In compliance with CICA Handbook Section 3862, Financial Instruments – Disclosures, the Board has categorized its assets and liabilities that are carried at fair value on a recurring basis, based on the priority of the inputs to the valuation techniques used to measure fair value, into a three level fair value hierarchy. Financial assets and liabilities measured at fair value are categorized as follows:

Level 1: Fair value is based on unadjusted quoted prices for identical assets or liabilities in an active market.

Level 2: Fair value is based on quoted prices for similar assets or liabilities in active markets, valuation that is based on significant observable inputs or inputs that are derived principally for or corroborated with observable market data through correlation or other means.

Level 3: Fair value is based on valuation techniques that require one or more significant unobservable inputs or the use of broker quotes. These unobservable inputs reflect the Board’s assumptions about the assumptions market participants would use in pricing the assets or liabilities.

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Level 1 Level 2 Level 3 Total

Cash and cash equivalents $ 2,171,516 - - $ 2,171,516 Investments Forward foreign exchange contracts - $ 754,635 - 754,635 Real estate 2,938,848 - $ 6,761,963 9,700,811 Fixed term 44,055,326 - - 44,055,326 Equities 95,711,196 - - 95,711,196

$ 144,876,886 $ 754,635 $ 6,761,963 $ 152,393,484

The following table presents additional information about assets measured at fair value for which the Board utilized level 3 inputs to determine fair value. 2010 2009Balance beginning of year $ - $ -

Purchase of level 3 investments 6,609,077 - Sale of level 3 investments (18,825) - Realized gain recognized in investment income 223 - Unrealized gain recognized in investment income 171,488 -

Balance end of year $ 6,761,963 $ -

6. Capital assets 2010 2009

Accumulated Net Net Cost depreciation book value book value

Land $ 368,460 $ - $ 368,460 $ 368,460 Building 1,678,791 472,979 1,205,812 1,240,302 Furniture and fixtures 1,836,765 1,537,709 299,056 335,775 Computer programs and equipment 773,417 461,501 311,916 342,748 $ 4,657,433 $ 2,472,189 $ 2,185,244 $ 2,287,285

7. Intangible assets 2010 2009

Accumulated Net Net Cost depreciation book value book value

Computer software $ 6,088,334 $ 4,172,374 $ 1,915,960 $ 1,984,089

8. Bank indebtedness

The Board has a $500,000 unsecured operating line of credit of which nil was used at December 31, 2010.

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9. Legislative obligations and other related party transactions

Included in these financial statements are transactions with various Prince Edward Island crown corporations, departments, agencies, and boards related to the Board by virtue of common influence by the Government of Prince Edward Island. Routine operating transactions in the ordinary course of business with related parties are settled at prevailing market prices under normal trade terms.

The Board is required by the Workers Compensation Act (the Act) to provide an annual grant to the Workers’ Advisor Program. The Workers’ Advisor Program operates autonomously from the Board and assists workers or dependants of workers in respect of claims for compensation. During the year, the Board paid $141,083 (2009 - $148,349) of the Program’s expenses.

The Board is required by the Act to provide an annual grant to the Employers’ Advisor Program. The Employers’ Advisor Program operates autonomously from the Board and assists employers in respect of classifications, assessments and claims for compensation. During the year, the Board paid $133,862 (2009 -$130,690) of the Program’s expenses.

The Board is required by the Act to pay the operating costs of the Appeals Tribunal. During the year, the Board paid $171,726 (2009 - $151,033) to cover the operating costs of the Tribunal.

10. Employee future benefits

Pension plan The Board and its employees participate in a multi-employer contributory defined benefit pension plan, administered by the Province of Prince Edward Island under the Civil Service Superannuation Act. The Civil Service Superannuation Fund provides pensions to employees of the Provincial Government and certain Crown Corporation and agencies based on the length of service and average of best three year’s salary. Since sufficient information is not readily available to account for the Board’s participation in the plan using defined benefit pension plan accounting, these financial statements have been prepared using accounting rules for defined contribution pension plans. The current year expense for this pension plan is $290,614 (2009 - $282,605).

Retirement pay benefits The Board provides a retirement pay benefit equal to one weeks pay for each year of service, subject to a maximum benefit equal to 26 weeks pay. The retirement pay benefit is payable upon retirement. Unionized employees qualify at retirement if they have accrued 10 years of service and attained age 55. Non-unionized employees qualify at retirement if they have accrued 5 years of service and attained age 55, accrued 30 years of service, or accrued 5 years of service and die or become disabled.

The significant actuarial assumptions adopted in measuring the Board’s accrued retirement pay benefits obligations are a discount rate of 4.5% (2009 – 5.75%) and a rate of compensation increase of 3% (2009 – 3%). The retirement pay benefits liability has been estimated to equal $901,600 (2009 - $802,800) based on the last actuarial estimate update as of December 31, 2010.

Other information about the Board’s retirement pay benefits is as follows: 2010 2009

Opening retirement pay benefits $ 802,800 $ 696,700 Changes during the year 98,800 106,100

Ending retirement pay benefits $ 901,600 $ 802,800

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11. Benefits liabilities

Benefits liabilities as at December 31, 2010 have been independently valued by the Board’s external actuary. Benefits liabilities include a provision for all benefits provided by current legislation, Board policies, and administrative practices. These liabilities also include a provision for future expenses of administering those benefits. Benefits liabilities do not include a provision for benefits costs of self-insured employers.

Since the benefits liabilities of the Board are of a long term nature, the actuarial assumptions and methods used to calculate the reported benefits liabilities are based on considerations of future expenditures over the long term. As the determination of these liabilities requires assumptions about economic and other events that may occur many years in the future, but which are based on best information as at the valuation date, a significant degree of professional judgement must be exercised in developing these assumptions. Accordingly, changes in future conditions within one year of the financial statement date could require a material change in the recognized amounts.

An analysis of the components of and changes in benefits liabilities is as follows: 2010 2009 Temporary Pension wage and extended Health loss wage loss care Rehabilitation Administration Total Total Balance, beginning of year $6,578,000 $ 83,449,000 $ 26,710,000 $ 2,641,000 $ 7,760,000 $ 127,138,000 $ 122,089,000

Assumed from Province (Note 15) 592,000 8,850,000 2,246,000 26,000 761,000 12,475,000 - 7,170,000 92,299,000 28,956,000 2,667,000 8,521,000 139,613,000 122,089,000

Expected increase 490,000 6,403,000 2,009,000 181,000 591,000 9,674,000 8,460,000

Changes in actuarial assumptions and methodology - 507,000 372,000 - 57,000 936,000 (1,564,000)

Experience (gains) losses (512,000) (3,546,000) (81,000) 567,000 (232,000) (3,804,000) 593,000

7,148,000 95,663,000 31,256,000 3,415,000 8,937,000 146,419,000 129,578,000

Costs incurred 4,476,000 6,247,000 4,690,000 637,000 1,043,000 17,093,000 15,512,000

11,624,000 101,910,000 35,946,000 4,052,000 9,980,000 163,512,000 145,090,000 Less:Payments made (4,810,000) (7,912,000) (5,199,000) (812,000) (1,218,000) (19,951,000) (17,952,000)

Balance, end of year $ 6,814,000 $ 93,998,000 $ 30,747,000 $ 3,240,000 $ 8,762,000 $ 143,561,000 $ 127,138,000

Key actuarial assumptions

The table below presents key assumptions used to determine the benefits liabilities. 2010 2009

Gross rate of return 7.0% 7.0% Real rate of return 3.5% 3.5% Increase in inflation 3.5% 3.5%

For the valuation as at December 31, 2010, the mortality table used was changed from the 1983 Group Annuitant’s Mortality table to the UP 1994 Annuitant Mortality table. All other assumptions are the same as those used in the December 31, 2009 valuation.

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11. Benefits liabilities (cont’d)

The two most significant assumptions used in calculating the benefits liabilities are the real rate of return and the increase in inflation. The liability estimates are highly sensitive to small changes in these assumptions. The following table presents the sensitivity of the liabilities to an immediate 0.50% increase and decrease in the assumed rates:

2010 2009

%age change in assumed rates +0.50% -0.50% +0.50% -0.50%

Real rate of return $(4,914,000) $ 5,254,000 $(4,379,000) $ 4,681,000

Increase in inflation $ 740,000 $ (720,000) $ 665,000 $ (646,000)

Benefits liabilities of self-insured employers are not included in the benefits liability. These liabilities will be borne by those employers when paid in future years. They do not add to the Board’s liabilities or its net fund balance.

12. Self-insured employers

These financial statements include the effects of significant transactions carried out for self-insured employers, principally the Government of Canada who directly bear the costs of their own incurred claims and an appropriate share of administration expenditures. Administrative fees and interest charges are included within the schedule of administrative expenses (Page 20). The 2009 numbers include transactions associated with the Province of Prince Edward Island (the Province). During 2010, the Board signed an agreement with the Province in which the Board assumed the Province’s self-insured liability and the Province became an assessed employer (see Note 15). Total assessment revenues and offsetting expenses included in the statements of operations and operating surplus for self-insured employers are as follows:

2010 2009

Current assessment revenue $ 783,276 $ 2,147,976 Administration fees and interest charges recoverable 253,981 791,643

$ 1,037,257 $ 2,939,619 Claims costs incurred Short term disability $ 128,136 $ 416,869 Long term disability 499,034 1,267,604 Health care 156,106 460,388 Rehabilitation - 3,115

783,276 2,147,976 Administration fees and interest charges 253,981 791,643

$ 1,037,257 $ 2,939,619

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13. Contingent liabilities

Latent occupational diseasesThe Board is liable for the future costs of claims relating to certain latent occupational diseases which may have occurred in the current year or previously, but which may not be recognized and reported for a number of years due to the extended latency period of such diseases. Because of the absence of reliable evidence and data pertaining to these matters, the liabilities cannot be reasonably estimated and have not been recorded in the financial statements.

14. Funding strategy and capital management

In 2002, the Board implemented a funding strategy to address retirement of the unfunded liability as at December 31, 2001. In recognition of the significant improvement in the Board’s financial position under this strategy (2002 – 2006), the Board replaced this funding strategy with a funding policy (POL01-13) which recognizes current funding levels and is aimed at maintaining a financial position of fully funded.

Fully funded means the total assets of the Board are equal to or greater than the total liabilities.

The funding policy will target a funding status in the range of 100% - 110% and includes specific adjustments to be applied to the assessment rate setting process should the funding status fall outside this range.

Although, per CICA accounting changes, investments have been recorded in the financial statements using the fair value method, investment revenue for funding policy purposes continues to be recorded using the smoothing method. Under the smoothing method, gains or losses realized on disposal of fixed term investments are deferred and amortized on a straight line basis over a nine year period. Realized and unrealized gains and losses on equity investments are deferred and amortized on a straight line basis over a four year period. The use of the smoothing method for funding policy purposes continues to be in effect to reduce the volatility of investment returns on assessment rates as per the goals of the funding policy.

Investment reconciliation to the smoothing method January 1, 2010 balance $ (165,522) 2010 adjustment to record revenue using the smoothing method 9,153,846

$ 8,988,324

Fund balance based on investment smoothing Fund balance as currently reported $ 20,177,948 Adjustment to record revenue using the smoothing method (8,988,324)

Fund balance based on investment smoothing $ 11,189,624

Asset total based on investment smoothing Total assets as currently reported $ 166,531,279 Adjustment to record revenue using the smoothing method (8,988,324)

Asset total based on investment smoothing $ 157,542,955

Total liabilities as currently reported $ 146,353,331

Funding status as per funding policy (percentage based on investment smoothing): 107.6%

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15. Agreement with the Province of Prince Edward Island

On August 26th, 2010, the Board signed an agreement with the Province of Prince Edward Island in which the Province ceased operating as a self-insured employer. Under the terms of the agreement, the Board assumed the Province’s self-insured liabilities as of January 1, 2009. The Province will now be considered an assessed employer pursuant to the Workers Compensation Act. The Board and Province have estimated that the Province’s self-insured liability as of January 1, 2009 was $14,064,000. During the year, the Province made a deposit to the Board of $14,064,000 which will be used by the Board to administer the Province’s claims until the final valuation of the assumed liabilities. The Board and the Province have agreed to value the assumed liabilities as of December 31, 2013. Any excess or deficiency in the deposit made by the Province will be settled subsequent to that valuation date.

16. Comparative figures

The 2009 comparative figures have been reclassified to conform to the 2010 financial statement presentation.

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Workers Compensation Board of Prince Edward Island Schedule of administration expendituresYear ended December 31 2010 2009

Building operating costs $ 169,522 $ 201,167 Communications, printing and office supplies 212,922 224,902 Computer maintenance 250,224 265,163 Depreciation 580,732 578,797 Dues and fees 53,845 63,268 Miscellaneous 38,688 40,290 Postage 93,219 74,386 Professional development 60,719 50,255 Professional fees 992,335 751,240 Salaries Board members 108,495 105,800 Staff members 4,279,043 4,254,255 Benefits 731,435 678,813 Retirement benefits (Note 10) 204,777 136,315 Telephone 81,125 86,009 Travel 196,802 192,521 8,053,883 7,703,181 Less allocation to benefits liabilities (Note 11) (1,218,000) (1,096,000)

$6,835,883 $ 6,607,181

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External Reports

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Workers compensation appeal tribunal 2010 Report from the Chair

Onbehalfofthemembersandstaff,IampleasedtoprovidetheannualreportontheactivitiesoftheWorkersCompensationAppeal Tribunal (WCAT) for the year ending December 31, 2010.

In2009-2010,WCATconductedaninternalreviewofitscurrentproceduresandpracticesinanefforttoenhanceservicestoIslanderswhousetheappealprocess.ThisresultedinarevisedAppealProcessbrochurebeingprintedandtheimplementationofseveralforms:NoticeofAppeal;AuthorizedRepresentativeConsentForm;andNoticeofIntenttoParticipate.The materials wereprintedinbothEnglishandFrenchandarenowavailableattheWCAToffice,onourwebsite(www.gov.pe.ca/go/wcat),andatallAccessPEIofficesthroughouttheProvince.

About the TribunalTheWorkersCompensationAppealTribunalconsidersappealsfromdecisionsoftheInternalReconsiderationOfficer(IRO)under the Workers Compensation Act andisthefinallevelofdecision-makingintheworkerscompensationappealstructureinPrinceEdwardIsland.ItsroleistoreviewWorkersCompensationBoard(WCB)decisionstoensuretheyareincompliancewiththeAct, regulations and policy. Although WCAT is separate and independent from WCB, ensuring that issues from workersandemployersareheardbyanimpartialpanel,itisboundbytheAct, regulations and policy.

Afullyaccessibleoffice,staffedbyafull-timecoordinator,islocatedintheSherwoodBusinessCentreat161St.PetersRoad,Charlottetown.

MembershipMembers of the Appeal Tribunal are appointed by, and at the pleasure of, the Lieutenant Governor in Council pursuant to Section 56(7) of the Act. The Act states membership is to consist of a chairperson, one or more vice-chairpersons, and as manymembers,equalinnumber,representativeofemployersandworkersrespectively.

During2010theLieutenantGovernorinCouncilrescindedtheappointmentoftwoinactivemembers.Sincetherehadbeenanimbalanceinnumbers,inthattherewasoneworkerrepresentativemorethanemployerrepresentative,onlyonereplacementwasnamed,ensuringcompliancewiththeActonceagain.However,inlatefallanotherresignationwasreceivedleaving an employer representative vacancy. Sitting members include: Chairperson Vice-Chairperson Vice-Chairperson WendyE.Reid,Q.C. JordanK.M.Brown JohnL.Ramsay,Q.C.

Employer Representatives Worker RepresentativesDonCudmore HarveyMacKinnon LeoCheverie NeilMacFadyenScottDawson JeanTingley NancyFitzGerald Elizabeth(Libba)MobbsRayHann DonaldTurner BruceGallant GaryPaynterStuLavers (Vacancy) GordonHuestis

Appealsareheardbyapanelofthreeconsistingofachairandamemberrepresentingworkerandemployerinterests.Thehearingsareconductedinaccordancewiththerulesofnaturaljusticeandproceduralfairnessandallpartieswithadirectinterest(theworker,theemployeratthedateoftheaccident,WCB,andanydesignatedrepresentative)aregivenanequalopportunity to present their case.

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Appeals FiledTostartanappealandmeetthetimelimitsinthelegislation,anappellantmustfileaNoticeofAppealwithin30daysoftheIROdecision.Thenoticeissharedwitheveryonewithadirectinterestandeachpartyisinvitedtoparticipateintheproceedings.Itisonlywhensubmissionsfromallpartieshavebeenreceivedthatahearingcanbescheduled.

ThenumberofappealsfiledwithWCATdecreasedsignificantly(52%)withonly23appealsfiledin2010comparedto48filedthepreviousyear.Asinthepast,themajorityofappealswerefiledbyinjuredworkers(78%).Chart1depictsthefilingtrendfor the past five years.

Chart 1: Appeals Filed

Active InventoryCaseloadinventoryisaffectedbynumerousfactorsincludingthenumberofcasescarriedoverfromthepreviousyear;newappealsfiled;appealswithdrawn;anddecisionreleased.Acaseremainsactiveuntilthefinaldecisionisreleased.Theyearendcaseloadinventorystandsat33:3readyforhearing;6pendingdecisions;12returnedtoWCBforpossiblenewevidence;and,12onholdattherequestoftheappellant.Chart2showsthenumberofappealswithdrawnoverthepastnumberofyears. Chart 2: Appeals Withdrawn

Hearings and RepresentationAhearingisscheduledafterwrittenargumentsandsubmissionshavebeenmadeanddistributedtotheotherparticipatingparties.OralpresentationremainsthestandardmodeforappealhearingsbeforeWCAT,althoughin2010thereweretwoinstanceswheretheout-of-provinceappellantrequestedparticipationbyteleconference.Allhearingsthisyeardealtwithcompensation issues. Chart 3 depicts a yearly comparison of hearings heard.

Chart 3: Hearings Held

Employer Initiated

Worker Initiated

Employer Initiated

Worker Initiated

2010 2009 2008 2007 2006

50

40

30

20

10

0

5

18

4

44 3

19

1

21

3

20

2010 2009 2008 2007 2006

16141210

86420

14

79

16

4

2010 2009 2008 2007 2006

35

30

25

20

15

10

5

0

2

24

5

25 2

14

4

291

11

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All participants appearing before WCAT may choose to be represented by another person (Worker Advisor, Employer Advisor, lawyer,friend,unionrep,orotherindividual).TherecontinuestobeadeclineinappearancesbeforetheTribunalbyself-representedappellantsandamovetowardauthorizedrepresentatives.StatisticsshowforinjuredworkerstheirrepresentativeofchoiceistheWorkerAdvisorwhoappearedat73%ofworkerinitiatedhearingsthisyear.TheEmployerAdvisor represented employer clients in both the employer initiated appeals this year.

Hearing Representation

Note: Inmostworkerappeals,theemployerisseldompresent,despitebeinginvitedtodoso.Similarly,inemployer initiatedappealspertainingtocompensationtheworkergenerallychoosesnottoparticipate.Workersarenot invited to participate in assessment appeals.

Decisions Numerousfactorsmustbeconsideredwhenlookingatthenumberofdecisionsrenderedversusthenumberofhearingsheld.Forexample,thereareinstanceswhereanappellantwilltablenewevidenceatahearingandthematterisreferredbacktoWCBwithoutawrittendecisionbeingrendered.Anotherexampleisthoseinstancesofmultipleappealsbeingheardatonce, but only one decision rendered. A third could simply be timing in that an appeal is heard one year but the decision not rendereduntilthefollowingyear.

Onhearinganappeal,WCATmayconfirm(dismissedordenied),vary,orreverse(allowed)thedecisionappealedfrom.Chart4showsthebreakdownofallowedanddismissedappeals.Alldecisionsarepostedonourwebsiteatwww.gov.pe.ca/go/wcat.

Chart 4: Decisions Rendered

Year Worker Initiated Appeals Employer Initiated Appeals

Self Worker Advisor

Personal Rep

Legal Counsel

Did not Appear

Self Employer Advisor

Personal Rep

Legal Counsel

Did not Appear

2010 6 17 0 1 0 0 2 0 0 0

2009 7 13 4 0 1 0 3 2 0 0

2008 5 7 1 1 0 1 1 0 0 0

2007 14 3 8 3 1 1 3 0 0 0

2006 4 3 3 1 0 0 1 0 0 0

Appeal Dismissed

Appeal Allowed2010 2009 2008 2007 2006

40

30

20

10

0

12

1614

79

4

17

19 8

5

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Timeliness of Rendering DecisionsFor the past number of years, the Tribunal has been monitoring the length of time it takes to release final decisions. The instances inwhichdecisionswerereleasedin90daysorlesscontinuestoimproveandthisyearwereachedahighof64%.Chart5illustrateswhatpercentageoftotaldecisionswererenderedwithinthelegislated90daysversusthosegreaterthanthattime.

Chart 5: Decision Time Percentages

Leave to AppealA WCAT decision is binding and the only recourse is for a party directly affected by a final decision of the Appeal Tribunal to makeapplicationforLeavetoAppealthedecisiontotheCourtofAppealonaquestionoflaworjurisdiction.

FollowingthereleaseofWCATDecision#121inMarch2010,WCBsoughtleavetoappealcitingnumerousgrounds.AnapplicationhearingwasheldinJunefollowingwhichtheCourtgrantedleaveonlyonspecificgrounds.Anappealhearingisscheduledforthenewyear.

ACourthearingoftheWCB’s2009leaveapplicationfromWCATDecision#70tookplaceinJune.Asinthepreviouscase,leavewasgrantedonlyonspecificgrounds.Anappealhearingwasheldandadecisionisnowpending.

InDecember2010,WCATwasadvisedWCBhadfiledaNoticeofAbandonmentwiththeCourtinrelationtotheirleaveapplicationfromWCATDecision#102.

Therehasbeennofurtheractiononthe2009leaveapplicationfiledbytheworkerinrelationtoWCATDecision#115.

Training and DevelopmentThe chair, vice chairs and coordinator continue membership in the Canadian Council of Administrative Tribunals (CCAT), a national,non-profitorganizationconsistingofmembers,lawyersandstaffoffederal,provincialandterritorialtribunals.CCATactsasanationalforumwhichaddressesissuesofimportancetotheadministrativejusticecommunityandprovidesitsmemberswithavenuetoworkinpartnershipwithothertribunals.

Onceagain,theChairattendedCCAT’sAnnualConferenceheldinJuneinMontreal,Quebec.

Moving ForwardAswemoveforwardwewillcontinuetostrivetoprovidetimely,fairandjustdecisionsaswetrytodoourbesttoservethepeopleofPrinceEdwardIsland.

Respectfully submitted,

Wendy E. Reid, Q.C. WCAT Chair

90 days or less

Greater than 90 days2010 2009 2008 2007 2006

100

80

60

40

20

0

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office of the employer advisor 2010 Report

Early in 2010, the Office of the Employer Advisor completed its sixth year of operations. This Annual Report highlights the accomplishments fortheyearendingDecember31,2010,andispresentedinaccordancewithitslegislatedmandate.

About the Office of the Employer AdvisorThe legislative authority for the Office of the Employer Advisor is contained in Section 85.(1)(b) of the Workers Compensation Act and itbecameoperationalonFebruary16,2004.ThemandateistoassistPEIemployersandemployerassociationswiththestatutoryinterpretation, application and administration of both the Workers Compensation Act and the Occupational Health and Safety Act,aswellaspolicies,proceduresandpracticesoftheWorkersCompensationBoardofPEI.TheEmployerAdvisorprovidesindependentadviceandassistanceintheareasofclaimsmanagement,classificationsandassessments,workplacehealthandsafetyandappeals.Servicesavailablefrom the Office of the Employer Advisor include education and training, assistance and representation during the appeal process, research andanalysisalongwithinformationsharing.OperationalfundingisprovidedtotheDepartmentofCommunityServices,SeniorsandLabourbytheWorkersCompensationBoardofPEIthroughemployerassessmentsleviedbytheboard.Therearenofeeschargedforourservicesandweoperateindependentlyofboththeprovincialgovernmentandtheboard.

New Employer Classification SystemTheWorkersCompensationBoardofPEIconductedaverycomprehensivereviewoftheEmployerClassificationSystemduringtheyearwithaviewtoassigningemployerstoappropriateriskclasseswhichwouldleadtoafairratefortheinjuryrisksinvolved.Thisreviewwasundertakenbyconsultantswhorequestedemployersandstakeholdergroupsprovidefeedbackonchangingthecurrentsystem.TheOfficeoftheEmployerAdvisorresearchedthisimportantaspectoftheworkerscompensationsystemandprovidedadetailedwrittenresponsetotheinitialreportoftheconsultants.Wealsoparticipatedinthefourpresentationsofthefinalreportwhichwereheldatdifferentlocationsacrosstheprovince.Whilenotallofourorotherstakeholderrecommendationswereacceptedforthefinalreport,anewemployerclassificationsystemwasadoptedbytheboardandwasscheduledtocomeintoeffectonJanuary1,2011.

WCB Related ActivityInadditiontoprovidinginputonthenewEmployerClassificationSystem,therewerenumerousotheropportunitiesforinteractionwiththeWorkersCompensationBoardofPEI,includingparticipationintheireleventhannualOccupationalHealthandsafetyConferenceandfeedbackonproposedchangestotheFirstAidregulations.Feedbackwasprovidedonproposedchangestoanumberofboardpolicies,inparticularthoseonhomemodificationsandspecialequipment,return-to-work,InternalReconsiderationandWorkersCompensationAppeal Tribunal.

TheOfficeoftheEmployerAdvisorrepresentedanumberofIslandemployersinthepreparationandpresentationoftheirappealstoboththeInternalReconsiderationOfficer(IRO)andtheWorkersCompensationAppealTribunal(WCAT).TheOfficeoftheEmployerAdvisorwasinvolvedwiththreeIROfilereviewsandthreeWCAToralhearings.WCATrenderedtwodecisionswhichwerependingfrom2009.

Duringtheyeartwenty-threenewfileswereopenedanddealtwithclaimsacceptanceandcosts,return-to-workissues,appealprocedures,apportionment,permanentimpairmentawards,thirdpartyclaims,calculationoftemporaryandextendedearningslossbenefits,latefilingcharges,registrationofbusinessesandthenewemployerclassificationsystem.Inadditionnumerousinquirieswerehandledfromindividual employers and employer associations on various aspects of both the Workers Compensation Act and the Occupational Health and Safety Actaswellasboardpolicies,proceduresandpractices.

InquiriesonavarietyofsubjectsfromWorkersCompensationBoardsinotherjurisdictionswererespondedtoandourAssociateMemberstatusintheAssociationofWorkersCompensationBoardsofCanada(AWCBC)providedaccesstoresearchandstatisticsonworkerscompensationlegislationacrossthecountry.WeparticipatedinteleconferencecallswiththeotherfivemembersoftheCanadianAssociationofEmployerAdvisors/Advocatesalongwithaface-to-facemeetingduringtheAWCBCCongressinHalifax.Wewererepresented at a number of WCB-related public events including the 2009 WCB Annual Report presentation, the National Day of Mourning CeremonyandtheNorthAmericanOccupationalSafetyandHealthflagraising.

CommunicationsDuringtheyeartwelvemonthlyandonespecialissueofThe Employer Advisorelectronicnewsletterwereproducedandcirculatedviathe internet to employers and their management staff, employer associations and to public sector managers. The Office of the Employer Advisorwebsiteatwww.gov.pe.ca/go/oeacontinuestoofferarchivedcopiesofournewsletteraswellascurrentinformationandup-to-dateformsonWCBandOH&Smattersandlinkstorelevantsitesofinterest.

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ContinuingthegoalofbuildingawarenessofourservicestoIslandemployersandemployerassociationswasamajorfocusagainthisyear.WeattendedmeetingsandspecialeventssponsoredbytheEmployersCouncilInc.;theChambersofCommerceinCharlottetown,Crapaud,Kensington,MontagueandSummerside;theTourismIndustryAssociationofPEI;theConstructionAssociationofPEI;thePEIRoadbuildersandHeavyConstructionAssociation,theAtlanticProvincesEconomicCouncil;thePEIChapteroftheHumanResourcesAssociation;theInnovationandTechnologyAssociationofPEI;thePEIChapteroftheFinancialManagementInstitute;thePEIChapteroftheInstituteofPublicAdministratorsofCanada;theAtlanticSocietyoftheVocationalRehabilitationAssociationofCanadaandtheHollandCollege Small Business Manager Program.

AsTreasurerandamemberoftheExecutiveCommitteeofthePEIChapteroftheCanadianSocietyofSafetyEngineering,theEmployerAdvisorservedontheirMembershipandNorthAmericanOccupationalSafetyandHealth(NAOSH)WeekCommittees.ThePEIChapterhostedtheCanadianLaunchofNAOSHWeekinCharlottetownwheretheMinsterofLabourCanada,theMinisterofCommunityServices,SeniorsandLabour,theChairoftheWorkersCompensationBoardofPEIandtheDeputymayorofCharlottetowngaveremarksfollowedbypresentationsonworkplacesafety.Asco-sponsorofthePEISafetyChampionoftheYearAward,theOfficeoftheEmployerAdvisorpresentedtheawardattheconclusionofthisprestigiousevent.

StatisticsThefollowingtablescapturetheotherrelevantactivitiesduringtheyear:

A. New Files Opened

Claims Related Assessment Related Appeals Related Other9 7 5 2

B. Appeals to the Internal Reconsideration Officer

AppealsHeard AppealsUpheld AppealsDenied 2009AppealDenied3 2 1 1

C. Appeals to the Workers Compensation Appeal Tribunal

AppealsHeard AppealUpheld AppealDenied DecisionPending 2009AppealsDenied3 1 1 1 2

In ClosingThepastyearofoperationsawsomesignificantchangesoccurwiththefirstbeingthecreationofthenewDepartmentofCommunityServices,SeniorsandLabourwhichonApril1,2010becamethedepartmenttowhichtheOfficeoftheEmployerAdvisorwillreport.ThesecondwastheannouncementofmyretirementasEmployerAdvisoreffectiveDecember31,2010.AsuccessfulsearchforareplacementwasconductedandthenewincumbentisscheduledtoassumeherdutiesinJanuary2011.

AtthistimeIwouldliketothanktheBoardofDirectorsandStaffattheWorkersCompensationBoardfortheirassistanceandcooperationduringmyterminoffice.IwouldalsoliketothankmypreviousandcurrentdepartmentalDirectorsandtheirstafffortheguidancetheyhaveprovidedoverthepastsevenyears.IwouldalsoliketothankourProgramAssistantforherassistanceandsupportoverthepasttwoyearsandtrustthenewEmployerAdvisorwillbenefitfromthesolidfoundationwhichhasbeenestablishedbythesepeople,aswellasthemanyemployersandemployerassociationswithwhomIhadtheprivilegetowork.

Respectfully submitted,

Keith D. Mullins, B.Comm., CVP, RRPEmployer Advisor

TAKE cARE OF IT BEFORE IT’S AN INJURY

www.wcb.pe.ca

14 Weymouth Street, P.O. Box 757

Charlottetown,PrinceEdwardIsland,C1A7L7

Telephone: 902-368-5680

Toll-Free in Atlantic Canada: 1-800-237-5049

Fax:902-368-5696•Web:www.wcb.pe.ca

2010 Annual Report Workers Compensation Board of Prince Edward Island

fix it before it’s an injury - wcb.pe.ca€¦ · before it’s an injury 14 weymouth street, p.o....

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