Lump sum Payments of NEL Awards

I am often asked to comment on whether a worker should opt for a lump sum award of their NEL award. The answer is yes. While it is true that over time you will receive more by accepting a monthly payment, this is dependent on the WSIB being a viable entity, the rules remaining the same and your being alive.

As of the end of the first quarter of 2009, the Board’s unfunded liability was $12.38 billion. Due to substantial job losses, in the Province the Board lost $105 million in premiums. While they insist that the system is financially viable money to pay for claims must come from somewhere. I’m a firm believer that money in my pocket today is better than possibly nothing in the future. In addition, if you die, the NEL benefit is not transferable. Your spouse and children are not entitled to these monthly NEL payments. If you accept the lump sum you can do what you want with the money today or in the future.