896
NEW ZEALAND GAZETTE
No. 41

These difficulties will mean that some of those costs will be borne by the Manager. “PHC” in the formula in paragraph 6.2 is intended to recover those costs across all Accredited Employers as well as the cost of administering the collection of primary health costs from Accredited Employers generally. “PHC” is to be fixed by the Manager from year to year based on actual experience with the proposed cost being the subject of paragraph 21.

6.5 The Manager is to be entitled to recover the likely administration costs during the Cover Period and Claim Management Period arising in respect of the Accredited Employers Programme as it affects the particular Accredited Employer. “A_AEP” is intended to reflect that cost. This amount is to be fixed from year to year by the Manager so as to provide full cost recovery but is not to exceed 3% of the premium that would otherwise be payable by the Accredited Employer if it was not a member of the Partnership Discount Plan (or the Full Self Cover Plan).

6.6 An Accredited Employer under the Partnership Discount Plan has the option of being protected by the employers liability cap (as set out in paragraph 16):
(a) If the Accredited Employer takes that option, “F_ELC” is to be a charge fixed by the Manager in relation to that particular Accredited Employer having regard to the general risks associated with the employer, its size and the industry in which it operates.
(b) If the Accredited Employer does not take that option, “F_ELC” is to be zero.

6.7 The discount for the Partnership Discount Plan is to be fixed annually by the Manager for each industry class used in fixing employer premiums in regulations made under the Act subdivided (for each such class) into the standard durations of Claim Management Periods to be offered under the Partnership Discount Plan. That discount is intended to be an actuarial calculation of the liability that would be undertaken by the employer within each such industry class had that employer been an Accredited Employer in the Partnership Discount Plan. “D_PDP” is intended to be that discount. For the purpose of calculating such discount the following steps are to be taken:
Step 1: The starting point is SPR (as defined in paragraph 6.2);
Step 2: From that is to be deducted:

• Bulk health costs as referred to in paragraph 6.3; and
• Administrative costs as referred to in paragraph 6.4; and
• Primary health costs.
  Step 3: The balance, after step 2, is to be treated as being for:
• prudential reserves; and
• claims benefit and case management expenses.
  Step 4: The balance, in step 3, is then to be allocated as between:
  (i) the standard Claim Management Periods in the Partnership Discount Plan;
  (ii) any subsequent period of likely claim management.
  For the purpose of this calculation:
  (iii) The calculation is to be based on the average employer in that industry class; and
  (iv) The calculation is to use the same actuarial calculations as are used by the Manager in preparing recommendations under section 409 of the Act for the year to which the premium relates.
  Step 5: D_PDP is the outcome of Step 4(i).

6.8 An Accredited Employer may seek to have the premium payable under the Accredited Employers Programme reviewed under section 310 of the Act (as though that section also applied to Part 10A of the Act) but an Accredited Employer must agree that a certificate from the auditors of the Manager as to the matters referred to in paragraphs 6.3, 6.4, 6.5, 6.6(a), 6.7 is to be conclusive of those matters in the absence of manifest error.

6.9 The premium to be paid by the Accredited Employer under the Partnership Discount Plan for the period up to 31 March 2001 is to be calculated in a similar manner to that set out in this paragraph 6 except that:
(a) D_PDP may include the factors included in “BHC”, “PHC and “A_AEP”; and
(b) Paragraph 21 does not apply to such premium setting.

PART 2
Full Self Cover Plan

7. Outline of the Full Self Cover Plan
   7.1 The Full Self Cover Plan is open to employers who satisfy the criteria set out in section 326E of the Act (and more particularly contained in paragraph 11) and who enter into a Contract for Full Self Cover with the Manager which provides for full self management by the Accredited Employer of all work-related personal injuries to their employees.

7.2 The Contract for Full Self Cover must specify a Claim Management Period which runs for the remainder of the relevant Cover Period in which the injury was suffered together with a further period which must be a minimum period of 24 months and a maximum period of 48 months from the expiry of that Cover Period.