Right now ACC is consulting on proposals to introduce experience rating into the Work Account from 1 April 2011.
Our legislation enables the establishment, by regulations, of experience rating and we must consult levy payers before recommending to the Minister for ACC that regulations are made.
Part of this consultation includes proposals for collecting information from employers to enable ACC to apply business grouping rules. ACC is consulting on the information collection proposals on behalf of the Minister for ACC.
WHY INTRODUCE EXPERIENCE RATING?
ACC levies are the main way in which the Government provides a financial incentive to businesses to improve their workplace safety. However, the current system of setting levies recognises and rewards, or penalises, safety records at an industry level. This means that businesses with good workplace safety records are carrying the cost of businesses that are less safe, and detracts from the incentives for improving safety.
Experience rating will modify the levies paid by individual employers and self-employed people based on their claims experience.
WHAT DOES THIS CONSULTATION COVER?
This consultation document outlines three main proposals:
1. Using an experience rating framework to implement experience rating, consisting of the following components:
- industry risk groups
- a no claims discount or high claims loading for small employers (No-Claims Discount programme)
- experience rating modification for large employers (Experience Rating programme)
2. Introducing new business grouping and business transfer rules for the purposes of experience rating
3. Reviewing ACC’s current levy discounts to ensure the Work Account has the funding it needs while still providing employers with incentives to improve their workplace safety and return-to-work performance.
CONSULTATION DISCUSSION DOCUMENT
Our proposals are set out in the "Experience Rating Information and Consultation Document".
To get a copy of this document visit www.acc.co.nz/ERconsultation, call 0800 222 728, or send an email with your request to ERconsultation@acc.co.nz
Right now ACC is also consulting on setting the 2011/12 levy rates. There is also an "Introduction" document which provides information about ACC, how the consultation process works and includes a copy of ACC’s Funding Policy.
To get a copy of any of these documents, visit www.acc.co.nz/levyconsultation, call 0800 222 728, or send an email with your request to levyconsultation@acc.co.nz
A copy of the actuarial advice upon which we have based our proposals, is available on request.
MAKING A SUBMISSION
We welcome your feedback on the proposal to introduce experience rating into the Work Account.
You can send your submission (which must include your name, address and contact phone number) in any of the following ways:

By post to:
Consultation on Experience Rating proposals
ACC
PO Box 242
Wellington 6140
By fax to: 04 918 4395
By email to: ERconsultation@acc.co.nz.
By completing an online questionnaire at: https://www.surveymonkey.com/s/experiencerating

Deadline for submissions: 5.00 pm, 29 October 2010
Please note that ACC is subject to the Official Information Act 1982, so your submission may be available to people seeking information under the Act.