Return To Work SA recently announced changes to the South Australian workers compensation scheme. The changes we outlined last August are the most dramatic in 20 years and have resulted in the scheme no longer being in deficit. The far reaching changes will result in the majority of businesses experiencing premium reductions from 1 July 2015.
Return To Work South Australian Changes – with dramatic changes to the premium formula and resulting calculations to changes to the claims model (operated by Employers Mutual and Gallagher Bassett on behalf of ReturnToWorkSA).
ReturnToWorkSA has released its mid-year financial results, announcing a complete turnaround in the financial position of the Scheme.
The Scheme has reversed the previous unfunded liability of $1.132 billion at 30 June 2014 to record a positive net asset position of $20 million. As a result, the scheme is now fully funded, with a funding ratio of 100.7% (previously 71%).
As a result the ReturnToWorkSA Board has announced that it will drop the 2015/16 average premium rate from 2.75% to 1.95% (plus WHS fee). This is the lowest in the scheme’s history and is great news for SA businesses.
ReturnToWorkSA attributed the remarkable turnaround in the scheme’s financial position to two significant factors; the impact of the legislative reform announced by the South Australian Government and the ongoing active management of the scheme.
For further information, please refer to the following:
Source: Return To Work SA
Title: Return to Work SA Announces Scheme is now Fully Funded
Read Time: 2 Minute
Source: Return To Work SA
Title: Return to Work Scheme
Read Time: 1 Minute