If workers think they have it bad know, wait until you reach 65 and you will see how bad things can be. I say this to warn workers that at age 65, if you were paid an ELS or ELP that I would suggest that you get your financial affairs in order and not make any purchases on credit.
At age 65, if a worker is being paid an ELP or an ELS which is extremely rare as with deeming, there is very little likelihood of receiving an ELS or an ELP. While I have not come across any information as to how a pension at age 65 for an ELS is calculated,I assume it would be calculated the same as for an ELP. The formula that WCB uses is based on the monthly payment of an ELP or ELS multiplied by 12 and by the length of time a worker has received the ELP or ELS to a maximum of 35 years multiplied by 2%. This then results in an annual pension and can be divided by 12 to derive at the monthly pension.
Using imaginary figures to derive at imaginary numbers much like the imaginary work and imaginary earnings WCB uses when deeming workers I shall show workers just how much a reduction in pension benefits a worker will receive after the age of 65.
For example. WCB calculates 90% of net earnings derived from gross earnings. If a workers 90% 0f net earnings after deductions for income tax, CPP and EI payments are paid and if a workers net earnings then are $100,000.00. By deeming, this $100,00.00 may be totally eliminated or reduced to for example say $30,000 which would be the ELP or the ELS. The ELP or the ELS is subject to ad hock reviews and if WCB decides that they can reduce a workers ELP or ELS, they by policy can do this and even go so far as as to increase the earnings from the imaginary work and imaginary earnings to account for expected wage increases to reduce the ELP or ELS even further.
Going on if for example, the $30,000 annually ($2500.00 monthly) is paid as an ELP or ELS for 20 years, at age 65, WCB would calculate the pension by multiplying $2500.00 times 12 times 20 years times 2% which equals $12000.00 a year or $1000.00 a month. This is a reduction of $1500.00 a month from a workers previous payment of an ELP or ELS of $2500.00 a month or a loss of 40% of a workers prior ELP or ELS. At age 65, with probably no CPP pension or if a worker receives a CPP pension, it would be very small and would reduce the guaranteed supplement significantly due to off setting, a senior receives old age security, guaranteed income supplement and a very small social assistance payment from the province.
There are also numerous workers who apply for AISH for work related injuries when their claims and benefits are denied based o false and misleading opinions of WCB Medical Advisors and although they lived in poverty when receiving AISH, at age 65, workers are cut off and left with nothing but OAS, guaranteed Income supplement and the very small social assistance monthly payment which would gross around $1200.00 to $1300.00 a month. Unless a senior can obtain subsidized housing, they will be put out onto the street.
Obviously, the system is such that productive workers making very good earnings when injured or disabled becomes a charge on family, friends and society which according to the Meredith Principles, the establishment of workers compensation was to prevent workers becoming a charge on family, friends and society. This being the case, it is about time that Governments simply abolish this sick system and increase AISH for all disabled individuals, abolish all premiums for employers who are supposed to fund the system but in reality do not as studies have shown that workers and their families pay over 80% of the subsidized cost through taxation for social assistance, medical care etc.