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The Nova ScotiaWorkers’ CompensationProgramA Focused ReviewMarch 2002The Nova ScotiaWorkers’ CompensationProgramA Focused ReviewMarch 2002© Crown copyright, Province of Nova Scotia, 2002This document is available on the Internet at <www.gov.ns.ca/enla/wcrc>For further information about this text, please contact the Department ofEnvironment and Labourlibrary.Author: James E. Dorsey, Q.C., Chair; Michael Power, Vice Chair; Bob Cook, JanetHazelton, CarolMacCulloch, Gary Penny, Steve Rankin, and Betty Jean Sutherland.Editor: Steve E. SmithGraphic design: Communications Nova Scotia, Creative ServicesLayout: Margaret Issenman Graphic DesignerPublished in conventional and electronic form by Communications Nova Scotia.ISBN: 0-88871-728-8Contents1. Introduction ______________________________________________ 12. Mandate and Review Process ________________________________ 52.01 Review Scheduled by Statute 52.02 Focused, Not Comprehensive, Stakeholder Review 62.03 Review Method – Five-Step Approach 73. Crisis and Change in 1990s _________________________________ 113.01 Workers’ Compensation Program Characteristics 113.02 Evolution of the Nova Scotia Workers’Compensation Program 143.03 Court Interpretation Directs Major Change –March 23, 1990 173.04 Structural Change Was The First LegislatedResponse – 1992 203.05 Six-year Transition Period – March 23, 1990to February 1, 1996 203.06 Judicial and Legislative Review –Substituted and Supplementary Benefits 223.07 Funding Crisis Disclosed in Early 1990s 253.08 New Statute, Appeals Tribunal and AppealBacklog in 1995-96 313.09 New Earnings Loss Replacement –TERB, PIB, PMI and EERB 363.10 Chronic Pain – Action, Reaction and Ongoing Confusion 373.11 Workers Advisers Program Underwent Major Changes 443.12 Remarried Dependent Spouses 453.13 Compensation Costs Decrease – Other Costs Increase in 1990s 463.14 Persons Responsible for Workers’ Compensation in the 1990s 534. Coverage – Scope and Nature ______________________________ 574.01 The Goal – Universal, Compulsory Coverage 574.02 Population, Employment and Job Trends 604.03 Importance of Jobs and Changing Work Relationships 634.04 Excluded Unless Expressly Included Exceptif Expressly Excluded 644.05 Three-Worker Rule 66

4.06 Family Members at Home Should Not Be Treated Differently 684.07 Organizational Structure Should Not Be a Factor 694.08 Casual Employees and Working Owners 704.09 Optional Coverage – Self-employed and Others 714.10 Waiting Period 734.11 Chronic Pain 785. Revenue _________________________________________________ 875.01 Sources of Income 875.02 Assessment Income 885.03 Self-Insured Employer Claims Costs and Administration Fees 995.04 Investment Income – A Success Story 1005.05 Bad Debts, Reporting Penalties and Other Charges 1045.06 Third Party Recoveries 1065.07 Overpayment Recovery 1075.08 Government Contributions and Guarantees 1086. Prevention and Rehabilitation _____________________________ 1096.01 Prevention and Rehabilitation –Goals of Avoiding and Correcting 1096.02 Prevention of Workplace Death, Injury and Illness 1106.03 Role of Workers’ Compensation Board 1136.04 Experience Rated Assessments 1196.04 Vocational Rehabilitation 1267. Benefits ________________________________________________ 1297.01 Health Care and Special Allowances 1307.02 Fatalities and Survivor Benefits 1327.03 Annuities 1327.04 Clinical Rating Schedule (CRS) Pensions 1347.05 Adjustment and Indexing of Benefits 1377.06 Amended Interim Earnings Loss (AIEL) 1397.07 Supplementary Benefit 1397.09 Payment and Commutation of Benefits 1447.10 Maximum Insurable/Assessable Earnings 1557.11 Calculating Earnings Replacement Benefits 1627.12 Permanent Impairment Benefit (PIB) 1687.13 Temporary Earnings Replacement Benefit (TERB) 1697.14 Extended Earnings Replacement Benefit (EERB) 1707.15 Maximum Compensation 173iv Workers’ Compensation Review Committee Final Report8. Adjudication, Medical Opinions and Appeals ________________ 1778.01 Primary Adjudication 1778.02 Board and External Medical Opinions 1858.03 Internal and External Levels of Appeal 1938.04 Employer Access to Documents and Records 2048.05 Time Limits for Submitting Evidence to WCAT 2078.06 WCAT Power to Remit Matters or Give Directions to WCB 2108.07 WCAT Power to Correct Errors and Reconsider Decisions 2118.08 Percentage of Board Awards Changed 2139. Accountability Frameworks _______________________________ 2179.01 Broader, Program Perspective is Imperative 2179.02 Three Distinct Accountability Frameworks 2189.03 Autonomous Agencies – Not Co-ordinated Partners 2229.04 Agency Roles, Relationships and Governance 2239.05 Legislative Assembly 2279.06 Executive Government 2289.07 Minister of Environment and Labour 2299.08 Workers Advisers Program (WAP) 2329.09 Funding Injured Worker Associations 2409.10 Workers Compensation Appeals Tribunal (WCAT) 242

9.11 Nova Scotia Court of Appeal 2449.12 Ombudsman 2449.13 Strategic Planning and Performance Measures 2459.14 Administrative Costs 2499.15 Regular, Scheduled, Comprehensive, Stakeholder Reviews 2569.16 A Need for an Integrated Approach 25610. Summary of Recommendations ___________________________ 261Appendices __________________________________________________ 271Appendix A – Terms of Reference 272Appendix B – Member Profiles 279Appendix C – Glossary of Terms 282Appendix D – Key Reports, Legislation and JudicialDecisions in The Evolution of TheWorkers’ Compensation Program 287Appendix E – Workers’ Compensation Review CommitteeTimeline and Public Meeting Schedule 289Workers’ Compensation Review Committee Final ReportvAppendix F – Focus Group Sessions 293Appendix G – Public Meeting Presenters and Written Submissions 295Appendix H – Self Insured Revenue 301Appendix I – Consolidated Master Data Table 302Appendix J – Internal and External Appeals 342Appendix K – WCB Summary of Major Benefit Changes Since 1917 358Endnotes ____________________________________________________ 365vi Workers’ Compensation Review Committee Final ReportLetter of Transmittal/Date of ReportMarch, 2002Honourable David MorseMinister of Environment and LabourP.O. Box 697Halifax, NS B3J 2T8Dear Minister:We have the honour to submit to you The Nova Scotia Workers’Compensation Program – A Focused Review.The review, pursuant to section 161 of the Workers’ CompensationAct, addresses the 28 review topics in the terms of reference, whichaccompany the Order in Council appointing the committee.The committee thanks you for your support and encouragementduring its work.Respectfully submitted,James E. Dorsey, Q.C., Chair Michael K. Power, Vice ChairRobert Cook Gary PennyNS Assn. of Health Organizations Cape Breton Injured Workers Assn.Janet Hazelton, Steve RankinNova Scotia Nurses Union Canadian Manufacturers & ExportersCarol MacCulloch, Betty Jean SutherlandConstruction Association of NS Nova Scotia Federation of LabourWorkers’ Compensation Review Committee Final ReportviiAcknowledgementsThe Workers’ Compensation Review Committee was appointed onMarch 29, 2001 under s. 161 of the Workers’ Compensation Act toconduct a focused review of the workers’ compensation program.The three agency components of the system – the Workers’Compensation Board, the Workers Advisers Program and theWorkers Compensation Appeals Tribunal – were most cooperativewith the committee. They willingly provided responses to our many

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The Dorsey Report

The Workers’ Compensation Review Committee was appointed on
March 29, 2001 under s. 161 of the Workers’ Compensation Act to
conduct a focused review of the workers’ compensati... (More)

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