Mr. Chairman, I am pleased to present Bill 24, An Act to Amend the Workers' Compensation Act. The bill proposes to increase that year's maximum insurable remuneration, known as YMIR, from $63,350 to $64,500 effective January 1, 2003. This amount would apply for both benefit and assessment purposes.
The 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 the amount of payroll for which an employer will be assessed in the year. The YMIR is currently set at $63,350.
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 earnings exceed the YMIR, this calculation is based on the maximum YMIR of $63,350.
Employers, meanwhile, are assessed according to their payroll. When a worker receives a salary greater than YMIR, the employer is only assessed on payroll up to the maximum YMIR of $63,350.
Section 52 of the Workers' Compensation Act states that the Workers' Compensation Board must review the YMIR every year. This review is completed according to board policy and a recommendation is forward to my office.
Bill 24 will allow the WCB to provide full replacement compensation to 70 percent to 80 percent of the Northwest Territories workforce. This means that 70 to 80 percent of full-time workers will be fully compensated in the event of injury under the new YMIR.
The YMIR was last amended by this House in the year 2000. With the proposed change the Northwest Territories will have the third highest YMIR in Canada. In closing, I look forward to hearing any comments on Bill 24 and I am happy to answer any questions from the committee. Thank you.