Safety Achievement Financial Incentive System (SAFIS) Policy 23-610 | Effective Date: May 26, 2026

Policy

WorkSafeNB is committed to developing programs that incentivise employers to practice prevention and post-injury management, such as the Safety Achievement Financial Incentive System (SAFIS).

SAFIS is a retrospective experience rating program which further increases financial accountability for claim costs beyond WorkSafeNB’s primary experience rating system. For more details on WorkSafeNB’s primary experience rating system see Policy 23-605 Experience Rating System.

Under SAFIS, if actual costs are higher than expected based on premiums paid, the participant will be subject to a surcharge. If actual costs are lower than expected based on premiums paid, the participant will receive a refund.

Participation in this program is voluntary for employers meeting the entry conditions set out in this policy and who are most likely to be in a position to shoulder the responsibilities and risks of such a system.

This program does not suspend any provision of the Workplace Health, Safety and Compensation Commission and Workers’ Compensation Appeals Tribunal (WCAT) Act, the Workers’ Compensation (WC) Act or the respecting those employers who elect to participate in SAFIS.

Interpretation

Entry conditions

1. To apply for participation in SAFIS, an employer first requests an information session from WorkSafeNB before July 31^st of the year preceding the first year of participation. After attending the information session, and no later than October 1^st, an authorized representative of the employer applies in writing confirming that the terms of this policy are acceptable.

2. Authorized representatives may include the president, chief executive officer, vice-president of finance or chief financial officer. Examples of other positions that may be considered on a case-by-case basis include a regional director for a large multi-national company, a city manager or chief administration officer for a municipality.

3. Applicants are required to meet all of the following conditions:

• Have average yearly assessment premiums, excluding funding level adjustments and experience rating rebates and surcharges, of $500,000 or more in the three calendar years prior to entry;
• For the workplaces selected, have a health and safety evaluation score of at least 80%. Health and safety evaluations are performed by WorkSafeNB and include but are not limited to;
  • A review of health and safety program elements and related documentation;
  • Observations of safety measures at a workplace; and
  • Interviews with workers to identify strengths, weaknesses, and areas for improvement.
• Have a disability management program which includes a return-to-work component;
• Have arranged to make assessment premium payments through WorkSafeNB’s Monthly Assessment on Actual Payroll (MAAP) system or, for an affiliated member of a large group with less than ten workers, have agreed to reporting actual payroll before January 31^st of the following year;
• Have reported payroll, paid  assessment premiums, and paid  administrative penalties, if any, on time over the last five years; and
• Have a stable operation with permanent facilities in New Brunswick for at least five years.

4. In cases where an applicant has more than one operation engaged in a similar business activity registered with WorkSafeNB, the experience of all operations will be combined, and the group will be treated as one participant under SAFIS.

5. WorkSafeNB will inform the applicant if their application meets the criteria prior to December 31^st of the application year. Approval will be conditional on payment of any entry deficit described in sections 6-8.

Program entry deficit

6. WorkSafeNB’s assessment system is based primarily on cost experience over five years. As a result, assessment rates respond gradually to changes in experience. If an employer joins SAFIS as cost experience begins to improve, the higher assessment rates reflecting prior experience may result in SAFIS refunds, instead of being used to recover any shortfall in their contribution to the accident fund. Therefore, participants entering SAFIS are required to cover any deficit arising from the previous five years upon entry into the system.

7. The deficit is calculated by comparing actual costs to expected costs under SAFIS for the five accident years prior to entry. If actual costs exceed expected costs, the difference is due prior to admission into SAFIS. 

8. When a deficit is owed, the five accident years on which any deficit is calculated upon are included in SAFIS.

Schedule of expected claim costs

9. The schedule of expected claim costs represents the expected claim costs corresponding to the assessment premiums paid by the participant. WorkSafeNB is solely responsible for determining expected claim costs.

10. The expected claim costs include an amount for the accident year, each of the seven following years, and a residual amount intended to cover the discounted value of all future claim costs beyond seven years.

11. The expected claim costs only include payments that are likely to be charged to the participant under the refund/surcharge process. They are derived from the assessment premiums paid by the participant, less the cost of administering the program, any charges for administration expenses, safety associations, and any other items normally shared by all assessed employers.

12. The pattern of expected costs is derived from the historical pattern observed for all assessed employers and assumes interest will be earned until expected disbursement using the valuation rate of interest.

13. The assessment premiums considered in developing the schedule of expected claim costs include the impact of experience rating in accordance with Policy 23-605 Experience Rating System, and any assessment premiums paid in respect of workers of sub-contractors considered to be workers of the principal under subsection 70(3) of the WC Act.

14. Any adjustments to prior year assessment premiums result in adjustments to expected costs for that accident year and may lead to adjustments to previous year’s SAFIS results.

15. Legislative or policy amendments that change the future benefits for past claims may have an impact on WorkSafeNB’s financial position. When this occurs, adjustments may be required to ensure that actual claim costs included in SAFIS are consistent with expected costs. 

Refund and surcharge process

16. Participants may be eligible for refunds or responsible for surcharges.

17. At the end of the year of accident and at the end of each of the following seven years, actual claim costs are compared to expected claim costs, and a refund or surcharge is calculated as follows:

• If actual claim costs are less than expected claim costs, the participant is eligible for a refund equal to 100% of the difference; or
• If actual claim costs are greater than expected claim costs, the participant is responsible for a surcharge equal to 100% of the difference.

18. The cumulative total amount of claim costs, including the provision for anticipated future costs, taken into account for a particular accident year, is limited to two times the cumulative total expected claims costs.

19. SAFIS participants maintain a certain level of protection against larger claim costs through the application of a claim cost maximum. The maximum is applied on a cumulative basis such that participants with similar claim cost totals feel a similar impact on long-term results no matter the relative severity of the individual claims or the timing of payments.

20. At the end of the seventh year following the year of accident, the accident year is closed, and a refund or surcharge is calculated as follows:

• A provision for anticipated future cost of claims is calculated using methodologies and assumptions consistent with those used for assessed employers in general. WorkSafeNB is solely responsible for determining the provision for anticipated future cost of claims.
• This provision is compared against the residual amount in the schedule of expected claims costs.
• If this provision is less than the expected residual amount, the participant is eligible for a refund equal to the difference; and
• If this provision is greater than the expected residual amount in the claim costs schedule, the participant is responsible for a surcharge equal to the difference, limited by the following:
  • The claim costs including the provision charged with respect to any particular accident year cannot exceed the maximum described in sections 18-19.

21. In the event of a retroactive adjustment, such as a cost relief decision or a WCAT decision, the claim cost adjustment will be reflected in the year the decision was processed. 

22. Beyond the end of the seventh year following the year of accident, additional claim costs and retroactive claim decisions have no impact on refunds or surcharges calculated under SAFIS. At the end of each calendar year, refunds and surcharges for all accident years are combined in order to determine the overall refund or overall surcharge for a participant.

23. Overall refunds are paid to the participant subject to additional security outlined in sections 26-30. The participant may request all or part of this amount be applied against future assessment premiums.

24. Overall surcharges, less funds made available under additional security sections 26-30, are to be paid by the participant within 30 days after the annual statement is issued. After 30 days, overdue interest will be charged as per Policy 21-040 Interest on Claim-related Benefits and Employer Accounts.

25. When a participant includes more than one employer, the participant chooses how to allocate overall refunds and surcharges among those employers.

Additional security

26. WorkSafeNB may set aside any portion of an overall refund into a SAFIS account for the participant for any reason, including but not limited to when the participant:

• Has not reported payroll, not paid assessment premiums, or not paid administrative penalties, if any, in a timely manner;
• Has had an increase or decrease in payroll in any single year in the previous five years of more than 25%, which may significantly impact the adequacy of the assessment rate charged;
• May not be in a position to pay future surcharges, as determined by WorkSafeNB; or
• Does not address health and safety gaps in a timely manner or to the satisfaction of WorkSafeNB (e.g., orders or recommendations).

27. Upon the effective date of release 9, any amount accrued in the former rate stabilization account prior to processing the 2025 overall refunds and surcharges will be transferred to the SAFIS account and will become available under the conditions in this section.

28. When concerns have been addressed to WorkSafeNB`s satisfaction, a portion of the funds in the participant`s SAFIS account may be made available to cover an overall surcharge or be distributed to the participant. Funds may also be applied towards future assessment premiums.

29. WorkSafeNB applies simple interest at the quarterly rate of return on funds held in the participant`s SAFIS account. Any portion of an overall refund is considered deposited on the day the annual statement is issued. This rate of return is the quarterly rate of return on WorkSafeNB’s investment portfolio and may be positive or negative.

30. The SAFIS account is held in the company’s name and is considered a company asset. When a participant’s company is sold, the SAFIS account remains with the company and not former owners. Prior accident years continue to be covered under SAFIS. The new owner may terminate their ongoing participation as outlined in sections 31-34.

Program termination

31. If an employer is unwilling or unable to continue to participate in SAFIS for any reason, notice must be given in writing to WorkSafeNB by November 1^st.  Effective January 1^st of the following year, no new accident years will be included.

32. WorkSafeNB may end an employer’s participation in SAFIS for any reason, including but not limited to:

• The employer has arranged its affairs to artificially reduce claim costs taken into account under this policy;
• The employer applies undue pressure on workers to return to work before they are able;
• The employer’s average premiums over three years falls below the participation threshold by more than 25%; or
• The employer’s accounts become overdue by more than 90 days.

33. If WorkSafeNB decides to terminate the SAFIS program, or to no longer allow a particular employer to participate in SAFIS, notice is given in writing by WorkSafeNB before November 1^st. Effective January 1^st of the following year, no new accident years will be included.

34. Upon termination by either party, program provisions continue to apply to all accident years already covered under SAFIS until the end of the seventh year following the year of accident.

Previous versions

• Policy 23-610 Safety Achievement Financial Incentive System (SAFIS) release 8, effective October 23, 2019
• Policy 23-610 Safety Achievement Financial Incentive System (SAFIS) release 7, effective January 25, 2018
• Policy 23-610 Safety Achievement Financial Incentive System (SAFIS) release 6, effective February 25, 2014