On July 16, 2026, the WSIB published revisions to its OPM Document No. 14-05-03, “Second Injury and Enhancement Fund”, eliminating the SIEF as a form of accident cost adjustment available to employers.

Whereas the WSIB’s SIEF policy has long provided employers with cost relief in claims where a worker’s prior disability caused or contributed to the compensable accident, or if the period resulting from an accident becomes prolonged or enhanced due to a worker’s pre-existing condition, the revisions establish an effective closure date of June 16, 2026:

Effective June 16, 2026, the SIEF is closing. As a result, cost relief under SIEF will not be provided in claims where it has not already been provided, nor will the amount of cost relief already provided under SIEF be adjusted, except as outlined in the “SIEF wind-down” section of this policy or as a result of an appeal.

The revisions appear to be of immediate effect and of broad application, stating that the policy applies to all decisions made on or after June 16, 2026, for all accidents. The policy also applies to cost relief provided under SIEF prior to June 16, 2026, subject to the provisions outlined in the new “SIEF wind-down” section of the policy.

Critical points to note under the “wind-down” provisions of the new policy include:

• Cost relief under SIEF will not be provided in claims where it has not already been provided, except as outlined in [the wind-down] section or as a result of an appeal.
• The amount of cost relief already provided to claims under SIEF as of June 16, 2026 will not be adjusted, except as outlined in this section or as a result of an appeal.
• The WSIB will determine entitlement to cost relief under SIEF, and adjustments to the amount of cost relief provided, for all requests received prior to June 16, 2026.
• Cost relief provided under SIEF as of June 16, 2026 will continue to be applied and taken into consideration when determining employers’ risk-adjusted premium rates.
• Cost relief provided under SIEF or adjustments to the amount of cost relief provided on or after June 16, 2026, as a result of a request received before June 16, 2026, will be applied and taken into consideration when determining employers’ risk-adjusted premium rates.

Notwithstanding the wording of the policy, a subsequent communication issued by the WSIB on July 20, 2026 provides for the continued consideration of requests submitted before July 16, 2026.

The implications of the SIEF’s elimination on employers are significant, as the removal of the SIEF brings with it concerns about an increase in volume of appeals brought by employers seeking to challenge claim costs they consider disproportionate to a worker’s accident history. This, in turn, risks a glut of issues in dispute and greater administrative burden on decision-makers.

Update (July 20, 2026):
On July 20, 2026, the WSIB published the results of the Value-for-Money audit conducted in respect of the SIEF. The WSIB cites misalignment with its intended purpose of removing employment barriers with pre-existing disabilities, as well as a failure to “keep pace with changes to how claims and premiums are managed” as reasons for its elimination. A full copy of the Value-for-Money audit report can be accessed here.

At the time of writing, the WSIB does not appear to have published specific details regarding any new initiatives intended to replace the SIEF. Rather, resources are to be reallocated to activities “that deliver the best return-to-work and recovery outcomes”, as well as the promotion of its various health and safety improvement initiatives to employers.