How are cost of living adjustments calculated for WorkSafeBC periodic payments of compensation?
WorkSafeBC calculates Cost of Living Adjustments using the formula provided by Section 25 of the Act. This formula is CPI minus 1% (to a maximum of 4%). If the formula results in a percentage of less than 0%, no adjustment is made to the periodic payments. If the formula results in a percentage greater than 4%, it is reduced to 4%. To determine the CPI percentage to be applied in January of a given year, WorkSafeBC compares the national CPI for October of the previous year with that for October of the year prior to the previous year. For example: WorkSafeBCs cost of living adjustment in January 2004 was 0.58%. This was determined by taking the CPI change from Oct 2002 to Oct 2003 and subtracting 1%: The CPI at Oct 2003 = 122.4 The CPI at Oct 2002 = 120.5 The CPI increase based on WorkSafeBCs method is (122.4 – 120.5)/120.5 = 1.58% Therefore, the increase at Jan 1, 2004 was 1.58% minus 1% = 0.58% The October CPI figures are published under Regulation & Policy in the Board Minutes. On th
