Ontario workers are staying in the workforce longer than ever, yet the Workplace Safety and Insurance Board (WSIB) continues to cut off Loss of Earnings (LOE) benefits at age 65.
According to a report by the Ontario Network of Injured Workers’ Groups and Injured Workers Community Legal Clinic, workers injured at 63 or older receive LOE beneifts for only two years, and recurrences of prior injuries after 63 may result in no support at all. For workers who continue to work past 65, this age-based cap creates a significant coverage gap, the workers' groups warned.
From an insurance perspective, the age cut-off shifts financial risk onto older workers and the private market. Many older workers in physically demanding or precarious jobs may not have sufficient private disability coverage, leaving them vulnerable to income loss.
Insurers offering private disability or wage-replacement policies may face growing demand from this demographic, potentially increasing premiums for older workers.
At the same time, WSIB’s actuarial models and claims forecasts no longer align with the realities of extended workforce participation, creating uncertainty in projections of claim costs and liabilities.
The law was originally introduced in 1990 when most workers retired at 65 and lifetime pensions were replaced with LOE benefits. Mandatory retirement has since been abolished, but WSIB’s limits remain.
While courts have upheld the age cut-off, other provinces have adopted more flexible approaches, allowing injured workers to demonstrate their intention to continue working and continue receiving benefits beyond traditional retirement.
Quantifying the potential impact, if the number of Ontario workers injured after age 63 grows in line with workforce aging trends, insurers and the WSIB could see a measurable rise in claims complexity and supplemental private coverage claims. Older workers may require extended benefit periods or partial wage-replacement coverage to bridge gaps, while private insurers may need to adjust underwriting standards, pricing, and reserves for this demographic.
The report said the WSIB age limit also affects business continuity and employer risk. Employers may face higher insurance and workers’ compensation costs indirectly, as older workers with inadequate coverage may rely on employer-provided benefits, creating potential workplace liability issues.
Bringing Ontario's workers' compensation system in line with modern workforce realities would reduce coverage gaps, improve predictability for insurers, and ensure workplace injury compensation meets the needs of all workers, the report said.
Updating the system would also mitigate pressure on private disability markets, align actuarial models with actual workforce trends, and strengthen the overall resilience of Ontario’s workplace insurance framework.
