Thank you, Mr. Chairman. I am pleased to present Bill 15, An Act to Amend the Workers' Compensation Act. The bill proposes to increase the years maximum insurable remuneration known as the YMIR from $49,000 to $52,000 effective January 1, 1998. This amount would apply for both benefit and assumed purposes. This year's maximum insurable remuneration is a fundamental element of workers' compensation. It is used to determine benefits payable to an injured worker, as well as amount of payroll for which an employer will be assessed in a year. The YMIR is currently set at $49,000.
When a worker becomes entitled to workers' compensation in the Northwest Territories, he or she is paid 90 percent of net earnings for as long as the disability continues. If a worker's net earnings exceed the YMIR, this calculation is based on the $49,000. Employers, meanwhile, are assessed according to their payroll. When a worker receives a salary greater than YMIR, the employer is only assessed on the payroll up to $49,000.
The YMIR was last amended by this House in 1996. With the proposed change, the Northwest Territories will have the fourth highest YMIR in Canada. Although Mr. Todd is proposing an increase to the YMIR, many employers will still pay less for compensation coverage in 1998. Effective January 1, 1998, the average assessment rate will drop by 12 percent from $2.12 to $1.87 per $100 of assessable payroll. As a result of this decrease, the Northwest Territories' rate is projected to be the fourth lowest in Canada.