✨ ACC Funding Policy and Residence Establishment
NEW ZEALAND GAZETTE, No. 42 — 12 MAY 2016
- consistency and stability in decisions over time, by imparting a longer-term focus.
Principles of Financial Responsibility in Relation to Accounts
This policy statement is consistent with the principles of financial responsibility outlined in section 166A of the Act. Specifically, section 166A requires the cost of all claims under the levied Accounts to be fully funded. This means adequate assets must be maintained to fund the costs of claims. To achieve full funding when setting levies, section 166A requires the Minister for ACC to have regard to the following principles:
- The levies derived for each levied Account should meet the lifetime costs of claims made during the levy year;
- if an Account has a deficit or surplus of funds to meet the costs of claims incurred in past periods, that surplus or deficit is to be corrected by setting levies at an appropriate level for subsequent years; and
- large changes in levies should be avoided.
It is acknowledged that there may necessarily be trade-offs between the principles of financial responsibility. The statement below reflects the Government’s weighting of those principles.
Funding Policy Statement
Consistent with the principles of financial responsibility, ACC must recommend levies for each levied Account according to the following requirements:
a. ACC must base the average levy rate on the expected lifetime cost of claims in relation to injuries occurring in the period for which ACC is recommending levies ("expected lifetime injury costs in the levy period").
b. Each Account must target a funding band of between 100% and 110% of reported liabilities (including additional liability for work-related gradual process claims not yet made).
c. ACC must include an adjustment to the average levy rate that takes the Account’s funding position to the funding band midpoint (105%) smoothly over a ten-year horizon. This is to be achieved by setting the adjustment at a fixed proportion of expected lifetime injury costs in the levy period, and for each such period, over the ten-year horizon.
d. Any increase to the average levy rate for each Account must not exceed 15% (in addition to inflation adjustments for the Motor Vehicle Account).
Dated this 10th day of May 2016.
HON NIKKI KAYE, Minister for ACC.
2016-go2680
Establishment of a Residence and Revocation of a Gazette Notice Under the Public Safety (Public Protection Orders) Act 2014
I, Christopher Finlayson, Acting Minister of Corrections, being satisfied that land and buildings, containing 6605 square metres as marked on SO 498297, are separate and secure, declare, under section 114 of the Public Safety (Public Protection Orders) Act 2014, the land and those buildings to be a residence (to be known as the Leimon Public Protection Residence) and revoke the notice dated the 10th day of September 2015 and published in the New Zealand Gazette, 10 September 2015, Issue No. 98, Notice No. 2015-go5212 establishing a residence (known as the Leimon Single Unit Public Protection Residence).
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NZ Gazette 2016, No 42
✨ LLM interpretation of page content
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Funding Policy Statement in Relation to the Funding of ACC's Levied Accounts
(continued from previous page)
🏥 Health & Social Welfare10 May 2016
Funding Policy, ACC, Accident Compensation Act 2001, Earners' Account, Work Account, Motor Vehicle Account, Financial Responsibility, Levies
- HON NIKKI KAYE, Minister for ACC
⚖️ Establishment of a Residence and Revocation of a Gazette Notice Under the Public Safety (Public Protection Orders) Act 2014
⚖️ Justice & Law EnforcementResidence, Public Protection Orders, Leimon Public Protection Residence, Revocation, Gazette Notice
- Christopher Finlayson, Acting Minister of Corrections