New Zealand Gazette – 2016 – No. 22

Page 6

✨ ACC Levy Rates Report



NEW ZEALAND GAZETTE, No. 22 — 11 MARCH 2016

Graph

The graph above displays:

  • Historical levy rates
  • Indicative put year levies
  • Funding ratio (Earners Account)
  • Levy to fund the cost of new year claims for Earners’ Account and earners’ portion of Treatment Injury Account (including administration costs)

Conclusion

The levy rates recommended by the Board to the Minister for ACC, and which were agreed by Cabinet, are consistent with the Board’s funding policy and the principles of financial responsibility in the Act.

HERWIG RAUBAL, bec, fnzsa, fiaa, Chief Risk and Actuarial Officer, Accident Compensation Corporation.

  1. Additional information can be found in the Work and Earners’ Accounts 2016/17 Pricing Reports for Consultation, which are available on request from ACC.

  2. ACC’s levy consultation website is www.shapeyouracc.co.nz. Consultation relating to the 2016/17 levy period took place between 1 and 30 October 2015.

  3. As of 24 September 2015, the government has responsibility for the funding policy to which ACC must give effect when making levy recommendations (see section 166B of the Act). This funding policy must be consistent with, and explain how it is consistent with, the financial responsibility principles in section 166A. The 2016/17 levy consultation process started before this change took effect and, therefore, the Board’s funding policy applied.

Appendix A: Work Account

Work Account Long-Term Projections

Year ending 31 March Levy rates ($ per $100 liable earnings) excl. GST Levy ($m) Lifetime cost of new year claims ($m) Administration costs for new year claims ($m) Levy required to fund lifetime cost of new year claims ($ per $100 liable earnings) Accrued administration ($m) OCL ($m) Account assets ($m) Funding balances ($m) Funding ratio
2015/16 0.90 822 583 248 0.63 0.27 8,336 7,237 1,099 115%
2016/17 0.80 690 615 259 0.64 0.27 8,487 7,396 1,091 115%
2017/18 0.81 727 645 272 0.64 0.27 8,650 7,562 1,088 114%
2018/19 0.83 775 675 285 0.65 0.27 8,828 7,738 1,090 114%
2019/20 0.83 805 705 295 0.65 0.27 9,011 7,932 1,079 114%
2020/21 0.84 844 736 305 0.65 0.27 9,211 8,147 1,064 113%
2021/22 0.85 884 771 316 0.66 0.27 9,420 8,374 1,046 112%
2022/23 0.86 926 805 326 0.67 0.27 9,637 8,611 1,026 112%
2023/24 0.87 970 841 336 0.67 0.27 9,867 8,859 1,008 111%
2024/25 0.87 1,004 878 347 0.68 0.27 10,104 9,125 979 111%
2025/26 0.88 1,051 916 358 0.69 0.27 10,361 9,409 952 110%


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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2016, No 22




✨ LLM interpretation of page content

🏥 Report in Relation to Rates of Levies Prescribed in the Accident Compensation (Work Account Levies) Regulations 2016 and the Accident Compensation (Earners' Levy) Regulations 2016 (continued from previous page)

🏥 Health & Social Welfare
Levy rates, Accident Compensation, Work Account, Earners' Account, Financial projections, Funding policy, Levy stability, Funding stability, Claims experience, Investment returns, Risk-free interest rates, Economic conditions, Funding ratios, Work Account levy rates, Earners' Account levy rates
  • HERWIG RAUBAL, bec, fnzsa, fiaa, Chief Risk and Actuarial Officer, Accident Compensation Corporation