Employer Over-Payments to ACC Always Refunded

24 NOVEMBER 2006

ACCIDENT COMPENSATION CORPORATION

MEDIA RELEASE - FOR IMMEDIATE RELEASE

Employer Over-Payments to ACC Have Always Been Refunded

"Employer over-payments to ACC have always been returned to them, in one form or another, and this year will be no different", says Ian Simpson, General Manager Finance, ACC.

Mr Simpson was responding to comments by Business NZ about current over-funding in the ACC Employers Account.

"Every year ACC estimates how much it needs to cover workplace claims and bases the levy on that estimate. If we over-estimate and take in too much then we have two options. We can either give the money back, in the form of reduced levies the next year, or we can retain some to smooth out or minimise future rises. This smoothing gives greater certainty to businesses about what their levies will be in coming years and that predictability is important".

"In fact ACC often does a bit of both. In the 2007/08 year we will be holding levies steady despite rising claim costs."

"The Business NZ suggestion that ACC might be tempted to use the money for other purposes is not possible under our Act."

"As for the process of setting levies being more transparent, Business NZ were consulted extensively and had a major input this year, as they previously have".

ENDS

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