N.L. government proposes changes to boost retirement benefits for injured workers

The Newfoundland and Labrador government has introduced legislation aimed at increasing retirement benefits for workers who have experienced a workplace injury or illness.

Bill 10, which proposes amendments to the Workplace Health, Safety and Compensation Act, 2022, would change how retirement benefits are calculated under the province’s workers’ compensation system.

Under the proposed changes, Temporary Earnings Loss benefits received beyond 24 months would be included in the calculation of a worker’s retirement benefit. Currently, only Extended Earnings Loss benefits are considered. The change would apply retroactively to Jan. 1, 2019, if passed by the House of Assembly.

Government estimates suggest approximately 3,100 current and former WorkplaceNL claimants would be eligible for a one-time increase to their retirement benefits, either immediately or upon turning 65. More than 700 of those workers would also receive retroactive lump-sum payments.

The average increase is expected to be about $5,800 per worker, although the exact amount would depend on the individual’s TEL benefits.

Officials say the proposed amendment would not affect eligibility for benefits, but only how retirement payments are calculated. The benefit would remain non-taxable and would be paid to a worker’s dependents if the worker dies before receiving it.

The government says the 2026 average employer assessment rate would not be impacted.