2015-2016 Evaluation of the Workers Compensation Program

2015-2016 Evaluation of the Workers Compensation Program PDF Version (186 KB)

Table of contents

• Executive Summary
• 1. Introduction
• 2. Profile
  • 2.1 Background
  • 2.2 The Workers Compensation Program
• 3. About the Evaluation
  • 3.1 Objective and scope
  • 3.2 Methodology
  • 3.3 Limitations
  • 3.4 Protocols
• 4. Findings
  • 4.1 Relevance
  • 4.2 Performance - Effectiveness
  • 4.3 Performance - Efficiency and Economy
• 5. Conclusions
• 6. Recommendation
• 7. Management Response and Action Plan
• Annex A: Documents Reviewed
• Annex B: Financial Information

Final Report

2016-03-17

Executive Summary

Evaluation supports accountability to Parliament and Canadians by helping the Government of Canada to credibly report on the results achieved with resources invested in programs. Evaluation supports deputy heads in managing for results by informing them about whether their programs are producing the outcomes that they were designed to achieve, at an affordable cost, and supports policy and program improvements by helping to identify lessons learned and best practices.

What we examined

The evaluation assessed the relevance and performance of the Workers Compensation Program (WCP), a contribution program between Public Safety Canada (PS) and the provinces/territories. In order to facilitate the use of volunteers in emergency management, PS shares 75% of the cost of claims of volunteers who have been injured or killed and who are not already covered by provincial Worker’s Compensation Acts or similar legislation.

Why it is important

The Emergency Management Framework for Canada states that all Canadians, individual citizens, communities, all level of governments, First Nations, first responders, the private sector, volunteer and non-government organizations, academia and international allies are involved in emergency management.

There are approximately 18,000 search and rescue volunteers across Canada. Volunteers are at the heart of emergency response providing all levels of government with critical resources. They represent the community’s link to municipal, provincial/territorial and federal organizations in the delivery of search and rescue services. The objective of the WCP is to encourage the use of volunteers in emergency response work by sharing in the cost of providing compensation to those injured or killed in the course of their volunteer work.

What we found

Relevance

The evaluation found that there is an ongoing need to provide compensation for injured or killed volunteers to facilitate their continued participation. Volunteers are crucial in responding to emergencies and search and rescue (SAR) events. Volunteers perform a wide variety of duties from leading air, marine and ground searches to setting up networks of volunteer teams to coordinating services for victims of natural disasters. Volunteer organizations have, at times, lost members due to the lack of insurance for volunteers. Failure to support volunteers may limit Canada’s ability to respond to emergencies and SAR events. 

In Canada, gaps in insurance coverage for volunteers continue to be an issue. Volunteers who are injured or killed while helping with SAR or emergency management are not consistently covered by provincial/territorial worker’s compensation programs. A review of private insurance policies for three volunteer SAR organizations revealed a number of gaps resulting in inadequate injury coverage of volunteers. Program data on the number of claims received and number of provinces and territories using the WCP demonstrate that the number of accidents involving volunteers increased over this evaluation period, compared to the previous one.  

Emergency management in Canada is a shared responsibility which relies on ongoing cooperation and communication between all levels of government and the participation of volunteers. The WCP’s long-term outcome of enhancing the national emergency response capability through facilitating the use of volunteers aligns closely with PS’s strategic outcome of building a safe and resilient Canada. In light of these factors, it is appropriate for the federal government to share the cost of compensation with the provinces.

Performance – Effectiveness

The WCP is meeting its immediate objective of compensating volunteer emergency service workers when they are injured or killed in the course of emergency service training or work. Since 2010 the program provided close to $1.2 million for more than 40 claims in the provinces of British Columbia, Alberta, Quebec, Nova Scotia and Prince Edward Island.

Progress towards the WCP’s intermediate outcome of facilitating volunteers’ willingness and ability to contribute to emergency response is less clear. While interviewees indicated that the availability of insurance coverage does not necessarily attract volunteers, the lack of insurance coverage can deter volunteers.

Progress towards the program’s long-term goal of increasing the number of volunteers cannot be verified as the program is not collecting data on the use of volunteers. It is possible that that this outcome is overstated in light of the small contribution that the WCP, as a single program, could make in this regard.   

Performance – Efficiency and Economy

Reductions in program costs may be possible. Savings might be achieved if there were synergies between the WCP and other SAR and emergency management initiatives. For example, there are third-party insurance policies, funded by other federal departments that cover volunteer emergency and SAR workers. In addition, the recent transfer of the National Search and Rescue Secretariat to PS presents a clear opportunity for integration.

Recommendation

The evaluation recommends that the Assistant Deputy Minister, Emergency Management and Programs Branch:

1. Consider alignment opportunities between the compensation program and existing programs and priorities (e.g. volunteers, search and rescue).  

Management Response and Action Plan

Management accepts the recommendation and will implement an action plan.

1. Introduction

In the Government of Canada, evaluation is the systematic collection and analysis of evidence on the outcomes of programs to make judgments about their relevance and performance and to examine alternative ways to achieve the same results. To that end, the Treasury Board Policy on Evaluation requires that all ongoing programs of grants and contributions be evaluated every five years to support policy and program improvement, expenditure management, Cabinet decision making, and public reporting. Section 42.1 of the Financial Administration Act alsorequires contribution programs to be evaluated every five years.

This report presents the results of a Public Safety Canada (PS) 2015-2016 evaluation of the WCP. The evaluation is intended to provide PS’s senior management with an evidence-based, neutral assessment of the relevance and performance of the WCP. The last evaluation of the Workers Compensation Program (WCP) was completed in 2010.

2. Profile

2.1 Background

A public safety emergency is an abnormal situation that, in the opinion of both Canada and the province or territory that is concerned, requires prompt action beyond normal procedures to prevent or limit injury or death to persons or damage to property, public services, and/or the environment. Federal ministerial responsibilities relating to emergency management activities are generally set out in the Department of Public Safety and Emergency Preparedness Act , the Emergency Management Act, (and other statutes) and the Emergency Management Framework for Canada The Emergency Management Framework for Canada states that all Canadians - individual citizens, communities, all level of governments, First Nations, first responders, the private sector, volunteer and non-government organizations, academia and international allies - are involved in emergency management. Volunteers are at the heart of emergency response, providing all levels of government with critical resources.

In addition to responsibilities for emergency management, the federal government coordinates the National Search and Rescue (SAR) program through the National Search and Rescue Secretariat (NSRS). In July 2015, to enhance Canada’s SAR capacity, the NSRS was transferred from the Department of National Defence to PS. Together SAR and emergency management provide a holistic approach to saving lives and keeping Canadians safe and secure. The fundamental difference between a SAR event and a public safety emergency is the intensity, magnitude and duration of the event. Like emergency management, SAR also relies heavily on volunteers.

Volunteers who are injured or killed while helping with SAR or emergency management are not consistently covered by provincial/territorial Workmen’s Compensation programs. In 1986^Footnote1, the federal government recognized this barrier to the participation of volunteer emergency service workers^Footnote2 and entered into agreements with the provinces to share the costs of compensation.

2.2 The Workers Compensation Program

The WCP is a contribution program between PS and the provinces/territories. The objective of the WCP is to facilitate the use of volunteer emergency service workers by ensuring compensation for injury or death while on emergency service training or work.^Footnote3 PS, the program administrator, cost-shares 75% of the cost of claims for those who have been injured or killed, and who are not covered by provincial/territorial Workers Compensation Acts or similar legislation. The other 25% is covered by the provinces/territories.

Funding is provided under federal-provincial/territorial contribution agreements. The WCP does not have a fixed annual budget. Rather, funding is provided by other emergency management contribution programs. Since its inception in 1959-1960 to the end of 2015, the WCP has paid out $5,137,640 to the provinces and territories. As shown in Table 1 over the five-year period 2010-2011 to 2014-2015, $1,174,298 was disbursed in WCP contributions.

3. About The Evaluation

3.1 Objective and Scope

The objective of the evaluation was to assess the relevance and performance of the WCP. The level of effort and number of lines of evidence was calibrated to a minimum based on the following factors:

1. the risk associated with the WCP is considered to be low;
2. the Program has been in existence since 1959-1960 with little or no change in program theory, design, or implementation;
3. materiality is low;
4. the federal government shares the cost with provinces and territories. Costs are not advanced but rather reimbursed based on claims that are thoroughly reviewed by both the provincial/territorial Workers’ Compensation Board (WCB) as well as PS.; and
5. the two previous evaluations (2004 and 2011) found the WCP to be well-managed.

3.2 Methodology

This evaluation was conducted in accordance with the Treasury Board of Canada Policy on Evaluation, the Standard on Evaluation for the Government of Canada, the PS Evaluation Policy, the Policy on Transfer Payments, and the Financial Administration Act.   

The evaluation addressed the following questions:

Relevance

1. Is there an ongoing need for the WCP?
2. Is the WCP aligned with the government priorities and the federal role?

Performance – Effectiveness

1. To what extent has the WCP achieved its expected outcomes?

 Performance – Efficiency and Economy

1. Is the WCP being delivered efficiently and economically?
2. Are there alternative approaches to more efficiently achieve the intended outcomes?

Given the low program risk and materiality the evaluation used the following three lines of evidence to assess the evaluation questions:

Document Review

The evaluation team conducted a review of claim files, program administrative files from 2010-2011 to 2015-2016, previous reports, the Speech from the Throne, and the Minister’s mandate letter.

Interviews

A total of six interviews were conducted with key program representatives: PS policy and program staff at headquarters; the Quebec and Alberta regions; the National Search and Rescue Secretariat; and the province of Alberta. A representative of the province of Quebec was not available. Quebec and Alberta were selected based on the number of claims in their respective jurisdictions so as to allow for a comparison between provinces with low and high claims volumes.

Analysis of Performance and Financial Information

The evaluation analyzed performance data that has been collected by WCP staff. Financial information was also analyzed. In order to calculate the program administration ratio, WCP staff estimated the time involved in processing claims up to the Director General level.

3.3 Limitations

A limitation of the evaluation was the lack of performance data around the WCP’s intermediate outcome of ensuring that volunteers are willing and able to contribute to emergency response. The evaluation team mitigated this limitation through interviews and document review. 

3.4 Protocols

During the data collection phase of the evaluation, PS program and policy representatives assisted in the identification of key stakeholders and provided documents and performance data. During the reporting phase, the evaluation team met with policy and program management to review the findings and conclusions.

This report was submitted to managers and the responsible Assistant Deputy Minister for review and acceptance. PS program and policy representatives prepared a Management Response and Action Plan in response to the evaluation recommendations. These documents were presented to the PS Departmental Evaluation Committee for consideration and for final approval by the Deputy Minister.

4. Findings

4.1 Relevance

4.1.1 Continued Need

The WCP was originally established to provide compensation to volunteer emergency workers who were injured or killed in the line of duty. The establishment of the compensation program was intended to facilitate volunteer participation in emergency response events. According to interviewees, insurance coverage for ground SAR volunteers has been a concern for many years and remains an issue. Interviews conducted in 2015 found that in some provinces and territories, volunteers are still not covered for SAR events under provincial workers compensation programs as legislation has not been updated. Some provinces tend to cover volunteers involved in prevention work but not those involved in rescues where the majority of injuries and deaths occur.  

Volunteers perform a wide variety of duties from leading air, marine and ground searches to setting up networks of volunteer teams to coordinating services for victims of natural disasters. The level of volunteer effort is significant. There are 15,000 SAR incidents in Canada a year, of which, approximately 10,000 are federal aeronautical and maritime incidents, and 5,000 are ground SAR. The Canadian Aviation Search and Rescue Association (CASARA) responds to approximately 110-120 incidents per year, the Canadian Coast Guard Auxiliary (CCGA) to about 4,500 and the Search and Rescue Volunteer Association of Canada (SARVAC) to about 1,500. These three volunteer SAR organizations collectively put in about 400,000 hours of operational and training time, and about 250,000 hours on administration and prevention.^Footnote4 Inadequate insurance coverage puts volunteer involvement in SAR and emergency management at risk.

Participating in SAR work is risky and the need for adequate injury insurance is great. A 2010 review of SAR volunteer injuries in British Columbia found that over time the rate of injury is increasing. Corresponding data for SAR and Provincial Emergency Program’s aerial volunteers showed that almost 95% of volunteer injuries have occurred since 1995, with only about 5% occurring prior to 1995. Program performance data also shows an increase in injuries. The number of claims has increased from approximately 11^Footnote5 in 2005-2010 to roughly 40 in 2010-2015. The file review conducted for this evaluation indicated that most of the WCP claims are related to ground SAR events.

Not only has the number of claims increased, but since 2010, there has also been an increase in the number of provinces using the WCP. Between 1995 and 2010 only British Columbia, Alberta and Nova Scotia accessed the WCP. In 2010, Prince Edward Island submitted a one-time claim. Quebec began using the WCP in 2011.  

The WCP is not the only approach to providing injury insurance coverage for emergency management and SAR volunteers. In 2004, representatives from the CCGA and the CASARA noted that provincial workers’ compensation programs do not provide adequate coverage and protection for their volunteers. These organizations consequently each negotiated an insurance policy with a third party private provider and receive federal funds to cover these private insurance policies. The CCGA volunteers receive funding from the Canadian Coast Guards, CASARA volunteers receive funding from the Canadian Armed Forces and SARVAC receives funding from the National Search and Rescue Secretariat to purchase these individual insurance policies.

A review of these policies revealed some gaps in coverage for volunteers such as limiting coverage to administrative or prevention activities. SARVAC’s insurance policy limits coverage to “personal accident, injury and death of members while engaged on administrative coordination or prevention activities in support of the national approaches authorized under this program,”^Footnote6 excluding participation in SAR incidents. National representatives from the Red Cross, Salvation Army and St. John's Ambulance reported that their volunteers were also not adequately covered by their insurance arrangement and that they would like to see volunteers receive the same benefits as the government employees working by their sides in emergencies.

There is a continued need to provide injury insurance coverage to volunteers involved in emergency management and SAR. Failure to do so may put the participation of volunteers in these activities at risk. Since volunteers provide critical resources, the loss of volunteers could put the safety and security of Canadians at risk.

4.1.2 Alignment with Federal Roles and Responsibilities

Emergency management in Canada is a shared responsibility which relies on ongoing cooperation and communication between all levels of government and the participation of volunteers. Within Canada's constitutional framework, provincial and territorial governments and local authorities provide the first response to the vast majority of emergencies.

The general roles and responsibilities of the Minister of Public Safety and Emergency Preparedness are outlined in the Department of Public Safety and Emergency Preparedness Act and the Emergency Management Act. The Minister is to coordinate emergency management activities among federal government institutions and in cooperation with provinces, territories and other entities. The responsibility for the National SAR Program, a Canada-wide horizontal program that integrates organizations and resources involved in the provision of SAR services to Canadians resides within PS, through the NSRS. The Secretariat’s role is to serve as a central policy coordinator for the National SAR Program, working directly with federal, provincial/territorial as well as air, ground and marine volunteer SAR organizations involved in search and rescue activities.

The objective of the WCP is to facilitate the use of volunteers in emergencies and SAR by sharing in the cost of providing compensation to volunteers who have been killed or injured. In light of the importance of volunteers in fulfilling its emergency management and SAR roles and to the safety and security of Canadians, it is appropriate for the federal government, as a policy decision to share this cost with the provinces and territories.

4.1.3 Alignment with Strategic Outcomes and Government Priorities

The WCP’s long term outcome of enhancing the national emergency response capability to meet emergencies of all types by facilitating the use of volunteers aligns closely with PS’s strategic outcome of building a safe and resilient Canada. By increasing the likelihood that volunteers will participate in emergency management and SAR, the WCP also supports the goal of PS’s emergency management program to save lives, preserve the environment and protect property and the economy by reducing the risk and the impact of disasters.

The Government of Canada has repeatedly committed to promoting the safety and security of Canada as a priority. The 2015 Speech from the Throne reinforced the Government of Canada’s priority to provide greater security and opportunity for Canadians. In particular, the Government of Canada is committed to bringing all the SAR stakeholders, all levels of government, the private/commercial sector and thousands of dedicated volunteers together to work proactively in improving our SAR system for Canadians.The WCP’s objective of facilitating the use volunteers in emergency response and SAR aligns well with the priority of keeping Canadians safe and secure and improving Canada’s SAR system.

4.2 Performance - Effectiveness

The program is meeting its immediate objective of providing compensation to volunteer emergency service workers when they are injured or killed in the course of emergency service training or work. Since 2010 the program has provided $1,174,298 for more than 40 claims in the provinces of British Columbia, Alberta, Quebec, Nova Scotia and Prince Edward Island.

The program’s intermediate outcome is to facilitate volunteers willingness and ability to contribute to emergency management. Interviewees commented that the availability of insurance coverage is not attracting volunteers to emergency response work. They commented that people volunteer more so for moral reasons. Nevertheless, lack of adequate insurance coverage is a concern of the large SAR volunteer organizations and has, at times, resulted in the loss of members.

Progress towards the program’s long-term outcome of increasing the number of volunteers cannot be verified as the program is not collecting data on the use of volunteer emergency service workers. A 2013 federal government report and SARVAC’s website identify the number of search and rescue volunteers across Canada at approximately 18,000.^Footnote7 In the absence of regular collection of this information, progress towards this outcome cannot be measured. The evaluation found that the long-term outcome of the WCP is overstated in light of the small contribution that the WCP, as a single program, could make in this regard.

4.3 Performance - Efficiency and Economy

PS program managers who were interviewed estimated that administering the program requires a maximum of 5% of their time. They also commented that the claim process is streamlined. When an accident occurs, the volunteer or his/her representative submits a claim for compensation to the provincial/territorial emergency services office that then sends the claim to the provincial/territorial WCB for review. Once reviewed the provincial/territorial emergency measures organization submits it to the regional representative of PS at least annually. A formal review of each claim is conducted by PS’s regional office. Once recommended by the PS regional office, claims are forwarded to the Senior Director of Emergency Management Programs at headquarters who authorizes the claim and forwards it to Finance for processing. Claims are reviewed and processed according to the program’s Terms and Conditions and the Financial Administration Act. The program administration ratio was 13% on average over the five year period as shown in ANNEX B.

The evaluation found that there appears to be opportunities for improving efficiency within PS and with other federal departments. The recent transfer of the NSRS to PS presents a clear opportunity for synergies within PS. The 2010 evaluation noted that there are third-party insurance policies funded through federal contributions that cover volunteer emergency workers. For instance, SARVAC has negotiated an insurance program with a private provider to cover injuries, and death. British Columbia, Alberta, and Nova Scotia have provided coverage for ground search and rescue volunteers within their provinces. In addition, the CCGA and CASARA have private policies and receive contributions from the Canadian Coast Guard and the Canadian Armed Forces to support the costs. ^Footnote8 Other volunteer teams across Canada that have the financial capacity have also purchased comprehensive insurance policies.^Footnote9 Evaluators were informed that savings might be achieved if there were synergies between these policies funded by other federal departments and the WCP.

The 2010 evaluation recommended that the Government of Canada addresses issues surrounding support for volunteer ground SAR organizations

5. Conclusions

Relevance

From a policy perspective there is a continued need to provide injury insurance coverage to volunteers involved in emergency management and SAR in order to facilitate their participation.  

Volunteers are at the heart of emergency response, providing all levels of government with critical resources. However, they are not consistently covered by provincial/territorial workmen’s compensation programs which put volunteer participation in emergency management and SAR at risk. Injury data as well as data on WCP claims shows that SAR work is risky and the need for adequate coverage is great.

As a result of the lack of adequate insurance coverage, several volunteer SAR organizations have negotiated insurance programs with private providers funded through federal organizations such as the Canadian Coast Guard and the Canadian Armed Forces. However, a review of these policies revealed a number of gaps and exceptions resulting in inadequate insurance coverage for volunteers.

Emergency management and SAR in Canada is a shared responsibility which relies on ongoing cooperation and communication between all levels of government and the participation of volunteers. In light of the importance of volunteers in fulfilling emergency management and SAR roles and to the safety and security of Canadians, it is appropriate for the federal government as a policy decision to share the cost of accident and injury compensation with the provinces and territories.

WCP’s long-term outcome of enhancing the national emergency response capability through facilitating the use of volunteers aligns closely with PS’s strategic outcome of building a safe and resilient Canada. In addition, the WCP aligns with Government of Canada’s priority of keeping Canadians safe and secure.

Performance – Effectiveness

The program is meeting its immediate objective of compensating volunteer emergency service workers when they are injured or killed in the course of emergency service training or work. Progress towards the WCP’s intermediate outcome of facilitating volunteers willingness and ability to contribute to emergency response is less clear. While interviewees indicated that the availability of insurance coverage does not necessarily attract volunteers, the lack of insurance coverage can deter volunteers. Progress towards the program’s long-term goal of increasing the number of volunteers cannot be verified as the program is not collecting data on the use of volunteers. 

Performance – Efficiency and Economy

The WCP’s administration ratio is on average 13% over the past five years. This ratio is high for a program that has approximately 40 claims and dispenses $1,174,298 in funding over a five year period. The evaluation found that savings might be achieved if there were synergies between the WCP and other SAR and emergency management initiatives. For example, the recent transfer of the NSRS to PS presents a clear opportunity for integration. Moreover, there are third-party insurance policies, funded by other federal departments that cover volunteer emergency and SAR workers. The 2010 evaluation noted that savings might be achieved if there were synergies in these policies and the WCP.

6. Recomendation

The evaluation recommends that the Assistant Deputy Minister, Emergency Management and Programs Branch:

1. Consider alignment opportunities between the compensation program and existing programs and priorities (e.g. volunteers, search and rescue).  

7. Management Response and Action Plan

Annex A: Documents Reviewed

Department of National Defense. 2015 Evaluation of the DND/CAF Contribution to the National Search and Rescue Program.

Public Safety Canada 2011. Results-Based Management and Accountability Framework (RMAF)/Risk Based Audit Framework (RBAF) for the Workers’ Compensation Program.

Public Safety Canada 2011. Terms and Conditions for the Payment of Contribution Under the Workers’ Compensation Program.

Public Safety Canada 2010-2011 Evaluation of the Workers Compensation Program.

Public Safety Canada 2004-2005 Evaluation of the Workers Compensation Program.

The Government of Canada’s Quadrennial Search and Rescue Review – Report. December 2013.

Speech from the Throne. December 4, 2015.

Stenton, Kathie (2010). A Review of Search and Rescue Volunteer Injuries in British Columbia.

Annex B: Financial Information

The amounts below represent the total estimated cost to the federal government.^Footnote10 The values are in dollars and have been rounded to the nearest hundred.

Notes:

• Salaries for PS program staff up to the Director General level were estimated based on the percentage of time spent by each resource per year. In this case, the time spent at the Director and Director General level was considered negligible for the calculation.
• Salaries for internal services were estimated to be 40% of the total estimated salaries.

Date modified:

2022-08-16