Annual Report 2006 - wsib

There really are no accidents.
4. Loss of Retirement
Income Fund
For injuries and illnesses that occurred prior to January 1, 1998, the WSIB sets aside funds
equal to 10 per cent of every payment made to injured workers.
Effective January 1, 1998, for claims incurred after December 31, 1997, for workers who
have received loss of earnings benefits for 12 continuous months, the WSIB sets aside
five per cent of their loss of earnings benefits for their retirement fund. Injured workers may
choose to contribute a further five per cent from their loss of earnings benefits. These funds
are segregated from the WSIB’s investment portfolio and are invested to provide retirement
income benefits for injured workers.
The carrying value of the Fund as of December 31 is as follows:
($ millions) 2006 2005
Cash and cash equivalents $31 $47
Bonds 170 141
Equities 261 207
Investment in pooled fund 410 340
$872 $735
The underlying securities in the pooled fund include fixed-income securities valued at $109
million (2005: $89 million), equities valued at $292 million (2005: $236 million), and money
market instruments valued at $9 million (2005: $15 million).
The change in net assets is as follows:
($ millions) 2006 2005
Funds set aside under the Act $69 $66
Investment income 96 76
Benefit costs paid (28) (27)
Increase in net assets 137 115
Net assets, beginning of year 735 620
Net assets, end of year $872 $735
5. Property, equipment,
and other assets
($ millions) 2006 2005
Cost
Net carrying
value
Land $29 $29
Net carrying
value
Buildings and leasehold improvements 196 101 $108
Office equipment 111 1 2
Computer equipment 140 23 14
476 154 124
Other assets 52 52 44
$528 $206 $168
Amortization expense in 2006 was $13 million (2005: $18 million).
WORKPLACE SAFETY AND INSURANCE BOARD Annual Report 2006 45