2015 Alberta WCB Rate Calculator

russ.vasseur@matrixconsulting.ca
www.matrixconsulting.ca
If you have any questions, or would like us to prepare the spreadsheet for you, please contact us.
the foremost experts in the field of Alberta Workers' Compensation.
Welcome to the Alberta WCB Rate & Premium Calculator!
premiums are calculated for Alberta's large employers.
A powerful yet intuitive resource in understanding how Workers' Compensation
Simply enter your WCB data in the blue cells of the "Instructions and Data Entry" worksheet
Updated with all pricing calculations required through the 2015 Rate Year
Also at no charge, Matrix can complete the spreadsheet for you!
The 2015 Standard Edition
All you need for accurate results:
Your WCB Employer Premium Rate Statement, and your annual payroll.
See how changes in claim costs impact your WCB rates & premiums.
This free spreadsheet is provided to you by Matrix Consulting Group:
Russell Vasseur - Director, Analytics - at 780-465-1444, Ext 222.
You can also email Russ at:
Visit our website at:
We hope you enjoy using this powerful, free calculator.
Please reach out to us at any time if you have questions - we are here to help!

Employer Name: These two cells are OPTIONAL (information
and is not needed to perform calculations).
Enter your 4 or 5 digit Industry Code, and the Rate Year you would
and like to calculate (make sure your Rate Statement is the same year).
Enter your " employer claim costs" from your Rate Statement
and Enter your " industry average claim costs" from your Statememt
Enter your " Participation Factor" and " Eligibility Factor" here.
and
Your Rate Statement may include a written section on the " Poor Performance Surcharge."
If so, enter a number (1-5) matching the number of consecutive years that " you have received
a maximum surcharge in the Experience Rating plan." If not, leave the default as zero.
Enter your " Industry Rate" here.
Enter your total gross payroll that you reported on your WCB Annual Return.
Note: this is called your Insurable Earnings (the portion of your payroll that is insurable).
Rate Year:
2015
$10,000,000
1
PPS Year
0
Alberta WCB Rate & Premium Calculator Instructions
Enter your WCB Data in the blue boxes below
Employer Costs Industry Avg.
If you prefer, Matrix can enter your specific WCB data for you, at no charge!
WCB Account:
#Your Company Name Here
There are default amounts already entered in the blue boxes - replace these with your own data.
Enter your Insurable Earnings from your Annual Return in the "Payroll" box at the bottom.
All other boxes below use information found on your WCB Employer Premium Rate Statement.
All other areas of the spreadsheet are locked to prevent accidental damage to the calculator.
Industry Code:
1100
$120,000.00
Participation F.
50.00%
Eligibility Factor
$100,000.00
If you have any questions, or want us to prepare the spreadsheet for you, please contact us:
If you would like to see the signicant premium reductions that only Matrix can deliver, see the Savings By Matrix tab.
Industry Rate
$1.00
Payroll
You are now ready to view the results! Click on the Calculator tab below.
See the Interpreting Results tab to understand and apply the calculated results.

WCB Rate & Premium Calculator Experience Rating: STANDARD
Employer Name: WCB Account: Industry Code: Rate Year:
# 1100 2015
Employer Costs Industry Avg. Disc. / Surcharge
100,000.00 120,000.00 8.34% Discount
PPS If you have high surcharges for 2 or more years in a row, you may be eligible
0.00% for an extra surcharge: the Poor Performance Surcharge
Industry Rate Employer Rate Payroll
$1.00 $0.92 10,000,000
ER Premium
$92,000.00 This is what you actually pay, based on your discounts/surcharges, & payroll
Premium Change Change in premiums between your Industry Rate and Employer Rate
$8,000.00
Decrease A "Decrease" results from discounts, and an "Increase" from surcharges
$0.92 Average premiums per $1.00 in costs ($1 in costs = $x.xx in premiums)
The blue cells below incorporate the info you entered in the Instructions and Data Entry tab.
Your Company Name Here
Can more be done to reduce your premiums? Absolutely! See the Savings By Matrix tab for more info.

You've read the instructions, entered data on the shaded blue cells, and the results are in. If you are wondering
what to make of them, read on!
First, after inputing all data in the blue cells, confirm that your Employer Rate in the calculator matches up with
the Employer Premium Rate on your WCB Rate Statement. If not, check all numbers entered in the blue cells again.
Indicates either STANDARD or ICP (Industry Custom Pricing) calculation rules apply.
See the NOTES tab for more information on how these rules are determined.
Change this amount, then see the impact on your Employer Rate and ER Premium.
Have a PPS surcharge? Find out what costs need to be removed to eliminate it.
For Poor Performance Surcharges, see what happens if you change your PPS Year.
Different maximum surcharges apply for PPS Years between 0 and 5.
Change your Industry Rate to forecast potential costs in future years.
A 5 to 10 percent change (up or down) per year is not unusual.
Observe changes to your Employer Rate when you change one or more variables.
See the NOTES tab for more information on how claims impact your premiums.
See what the above changes mean in premium dollars. Also see the premium
savings when Matrix reduces your costs by 10-40%, in the Savings By Matrix tab.
Marginal Premium: the average premiums required per $1.00 in claims costs.
Remember that each claim impacts your premiums for up to 3 Rate Years.
Employer Costs
100,000
PPS Year
0
Industry Rate
$1.00
$0.92
ER Premium
$92,000.00
Marginal Prem…
$0.92
Interpreting the Alberta WCB Rate & Premium Calculator
Now that you have calculated your results, what do they mean?
Contact Matrix for a free consultation - it only takes a few minutes and we are happy to help!
Employer Rate
STANDARD
Once you've confirmed the calculator is giving accurate results, it's time to leverage it's power!

This spreadsheet shows the potential premium savings that can be achieved through Matrix
Consulting's comprehensivce claim reviews. Results include claim cost reductions of 10 to 40%.
Potential Savings By Matrix Experience Rating: STANDARD
Your Company Name Here # 1100 2015
Existing Costs 10% cost redux 20% cost redux 30% cost redux 40% cost redux
Employer Costs Matrix Costs Matrix Costs Matrix Costs Matrix Costs
100,000.00 90,000.00 80,000.00 70,000.00 60,000.00
Disc. / Surcharge Disc. / Surcharge Disc. / Surcharge Disc. / Surcharge Disc. / Surcharge
8.34% Discount 12.5% Discount 16.67% Discount 20.84% Discount 25% Discount
PPS Surcharge PPS Surcharge PPS Surcharge PPS Surcharge PPS Surcharge
0.00% 0.00% 0.00% 0.00% 0.00%
Employer Rate Matrix Rate Matrix Rate Matrix Rate Matrix Rate
$0.92 $0.87 $0.83 $0.79 $0.75
Your Premiums Matrix Savings Matrix Savings Matrix Savings Matrix Savings
$92,000.00 $5,000.00 $9,000.00 $13,000.00 $17,000.00
SAVINGS BY MATRIX
Please contact us for more information, or to request this review!

1 Make sure the Rate Year in the calculator matches the Rate Year on the WCB Premium Rate Statement used.
2 NOTE A: Calculations depend on the Industry Code and Rate Year you entered. These two variables will determine
the type of Experience Rating calculation used (STANDARD or Industry Custom Pricing), which will be indicated in
the green cell "J1" at the top right edge of the calculator. See the NOTES tab for more information on this.
3 At PPS Year, enter "0" unless information on a "Poor Performance Surcharge" is included on your WCB Premium
Rate Statement. For example, enter "2" when you read "You have received a maximum surcharge in the
Experience Rating Plan for two consecutive years." Enter "5" when you read "...five or more consecutive years."
4 Save a version of the calculator for each Rate Year you would like to work with (remember, claims impact 3 years!).
If more than one Industry Code is assigned by the WCB, save a different version of this spreadsheet for each Industry
Code as well. Do the same with multiple WCB accounts - save separate files for each industry on each account.
5 Once calculator results are confirmed and files saved, go ahead and change different variables (claim costs, payroll,
industry rates, etc.), and see how these changes impact your WCB rates and premiums.
6 NOTE B: Want to have a better understanding of the relationship between WCB Claims and Premiums?
See the NOTES Tab for a description of how claims experience is used in setting your rates, and for how long.
7 You have implemented best practices, and committed substantial resources to prevention & disability management.
Can more be done to reduce your WCB premiums? Absolutely! See the Savings By Matrix tab for more info.
www.matrixconsulting.ca
Or visit our website at:
We hope you enjoy using this powerful, free calculator.
Please reach out to us at any time if you have questions - we are here to help!
Use data found on your WCB Rate Statements, plus your annual payroll
At no charge, Matrix can enter your specific WCB data for you!
Alberta WCB Rate & Premium Calculator - TIPS
Seven great tips to help you use and understand this powerful disability management tool

Supporting Information for the Alberta WCB Rate & Premiuim Calculator
Note A: The calculation formula depends on the Industry Code and Rate Year entered
The calculator uses your Industry Code and Rate Year to choose the correct Experience Rating calculations, using
"STANDARD" or "ICP" (Industry Custom Pricing) formulas. As of 2015, 23 Industries use the ICP version, but as
they all began ICP in different years, the worksheet also needs to know the Rate Year to determine correct pricing.
For more details on ICP, please see the ICP page of the WCB website: http://www.wcb.ab.ca/employers/ICP.asp
For example, under the WCB's Industry Custom Pricing program, there are changes in 2015 to the way rates are
calculated for Industry 9902 (Cleaning Services - Mobile Pressure). That industry began participating in ICP in 2013
with the use of the Cost Relief feature, and then added the Experience Rating feature in 2015.
While the Cost Relief feature impacts what claim costs are included in Experience Rating calculations, it is the
Experience Rating feature of ICP that changes the calculations themselves, and so 2015 is of importance here.
Using the above example with Industry 9902, if you were to enter this Industry Code, and a Rate Year of 2014 or
earlier, you would see "STANDARD" displayed at the top right of the calculator.
This means the spreadsheet will apply calculations based on "standard" Experience Rating. Alternatively, entering a
Rate Year of 2015 or later will cause "ICP Type 1" to appear in the calculator, indicating a different calculation rules.
For each industry, "ICP Type 1" or "ICP Type 2" will only appear for those specific years where that industry is
participating in ICP's Experience Rating feature. For all other years (and Industries), "STANDARD" will appear.
Note B: Do all claims impact my rates, and how?
It is useful to understand which claims impact a specific rate year, as well as how many rate years each claim will
impact. The WCB provides an excellent explanation of this within the Pricing Programs section of their annual
Premium Rates Guide . See page 23 of the 2015 version - "Experience Rating Plan (for Large Employers)"
Here is a link to this document: http://www.wcb.ab.ca/pdfs/employers/2015_premium_rates_guide.pdf
We can also summarize as follows: For Large Employers, only lost time claims and claims with costs over $1,000
are used in determining discounts and surcharges. These are "Experience Rated" claims. Any rate year will include
certain claims costs from these claims, that occured in three prior years. Also, Experience Rated claims will impact
rates in three future years. In both cases, there is a "lag year " in between prior and future years.
Example: The 2015 rate year includes costs from Experience Rated claims that occurred in 3 prior years: 2011,
2012, and 2013. Claims from 2014 are not included (as 2014 is the lag year for 2015 Experience Rating calculations).
Also, an Experience Rated claim that occurred in 2015 impacts three future years: 2017, 2018, and 2019.
Note that the 2015 claim has no impact on 2016 rates (as 2016 is the lag year for claims occuring in 2015).
Using the above information, you can save different worksheets for all three years, and add up the impact.
For example, you could model the impact of costs from a 2010 claim on 2012, 2013, and 2014, then add up the
impact from those three spreadsheets to see your total impact from the 2010 claim.
For better modelling, one needs to understand other factors, such as the Maximum Per Claim Cost, Cost
Development, and other features of Alberta WCB pricing. Matrix can instruct you on these topics, at no charge.
However, even with the few principals discussed above, one can create reasonable estimates with this calculator.

WCB Rate & Premium Calculator: All Details Experience Rating: STANDARD
# 1100 2015
Company name, WCB #, Industry Code & Rate Year entered in Instructions & Data Entry tab
Employer Costs "employer claim costs" - 3 years of costs used to calculate your Employer Rate
$100,000.00 <---- your employer claim costs from your Rate Statement
Industry Avg. "industry average claim costs" from the same 3 years
$120,000.00 <---- your industry average claim costs from your Rate Statement
Experience Ratio The Experience Ratio compares your own 3 year costs (employer claim costs)
16.67% lower to your expected costs (industry average claim costs) for those same 3 years.
Participation F. This factor limits discounts and surcharges by payroll size and industry rate.
50.00% <---- your Participation Factor from your Rate Statement
Eligibility Factor This factor limits discounts and surcharges for a new business.
1 <---- your Eligibility Factor from your Rate Statement
Disc. / Surcharge Your resulting discount or surcharge after Participation and Eligibility Factors.
8.34% Discount This does not include extra "PPS" Surcharges you may be eligible for (below).
PPS Year Poor Performance Surcharge: for repeat years with maximum surcharges above.
0 <---- # of consecutive years "you have received a maximum surcharge"
Potential PSS Your PPS surcharge earned due to very high claim costs in consecutive years.
0.00% Your potential is always zero when you have a discount, or small surcharges.
Capped PPS This is your actual PPS, capped based on the "PPS Year" you entered above.
0.00% PPS Year of 0 or 1 = 0% cap, Year 2 = 25% cap, 3 = 50%, 4 = 100%, 5+ = 200%
Industry Rate Also known as the "Base Rate", before your discounts/surcharges are applied.
$1.00 <---- your Industry Rate from your Rate Statement
Rate Adjustment Your "Industry Rate" is impacted by this amount due to discounts or surcharges.
$0.08 Decrease A "Decrease" results from discounts, and an "Increase" from surcharges.
Employer Rate Your rate after all discounts/surcharges (including any PPS) above are applied.
$0.92 This is called your Employer Premium Rate on your WCB Rate Statement.
Payroll Your "Insurable Earnings" figure (your payroll portion that is "WCB insurable").
10,000,000 <---- your Insurable Earnings you reported on your Annual Return
ER Premium Your "Experience Rated" Premiums are based on your Employer Rate & Payroll.
$92,000.00 This is what you actually pay, based on your discounts/surcharges & payroll.
Premium Change The difference between your ER Premiums (with discounts/surcharges) vs.
$8,000.00 the premiums you would have paid based on the Industry Rate.
Decrease A "Decrease" results from discounts, and an "Increase" from surcharges.
$0.92 Average premiums per $1.00 in costs ($1 in costs = $x.xx in premiums)
Your Company Name Here

2015 Alberta WCB Rate Calculator

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