Update – South Australia Robin Shaw Manager, Self Insurers of SA Inc Mt Gambier 21 May 2007...
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Update – South Australia Robin Shaw Manager, Self Insurers of SA Inc Mt Gambier 21 May 2007 SELF INSURERS INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk
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Transcript of Update – South Australia Robin Shaw Manager, Self Insurers of SA Inc Mt Gambier 21 May 2007...
Update – South AustraliaRobin Shaw
Manager, Self Insurers of SA Inc
Mt Gambier21 May 2007
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation
• OHS&W (Penalties) Amendment Bill• Territorial provisions now in place• OHS&W (Inspections by Union Officials) Bill• OHS&W (Aggravated Offences) Bill• Discussion paper by WorkCover on changes to
recover the unfunded liability & other amendments – feedback due 30 June; review report due Nov 07
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the wrinkles
• Proposed changes to WRCA:• Discussion paper presented to the Minister 11/06• No explanation for 4 months delay in releasing it• Ministerial statement preceded the announcement
that the unfunded liability had grown to $722.7m as at 31/12/06
• Review to be conducted by Alan Clayton (Bracton Consulting) and John Walsh (PwC)
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the wrinkles
• Clayton and Walsh due to report Nov 07• Revised legislation target date 1/7/08• What will the liability be by then? $800m+?• Why have a review?• Nov 07 ties in with a Federal election• John Walsh is highly respected in his field & was
consulting actuary to WorkCover SA until 2003• A sense of irony in the Minister’s announcement?
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the proposals
• Victorian system of step downs – 95% at day 1, 75% at week 13
• Disability threshold at 2 years• Medical panels on Vic model with Qld-type system
of appointing panels• Removal of medical questions from WCT• Use of AMA Guides for most medical/incapacity
questions
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the proposals
• Deemed earnings in 1st 2 years• Medical benefits cease 12 months after IM ceases• Increase prescribed sum to Vic level ($373K)• WBI threshold for access to lump sums• No common law access• 3-step dispute process – remove arbitration & Full
Bench hearings in WCT, allow appeal to Supreme Court by special leave
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the proposals• Changes to worker legal cost structures to
encourage early settlement• Limit worker costs recoverable by solicitor to
amount payable under Act• Allow for cost orders against solicitors• No reinstatement of IM where s.36 notice is
appealed• Lift levy cap to 15% & raise minimum levy• Levy payable in advance
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Legislation – the proposals• More discretion for WorkCover to manage self insurer
structure changes• Retain 200 worker requirement, but - • Introduce an alternate remuneration formula• Allow groups of incorporated associations• Include ‘1-in-all-in’ rule in WRCA• Allow WorkCover to consider the impact on the Fund
when a SI makes an acquisition• 46 other largely unexplained changes in the appendix
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Regulation• Natural Consequences Model under review• Exit fees – WorkCover says it has a simpler and
fairer formula to offer• Evaluation Practice Manual - supported by SISA• Corporate restructure issues after Rinker v
WorkCover- Chapter 9 of the Code• SI Levy for 2007-08 settled after short debate• Next challenges – guarantee multipliers & options
to replace EOL insurance
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Natural Consequences Model• See Code of Conduct for detail on content• Has absorbed much SISA time and energy since
its introduction• Is a backward step in its current form• Has generated a few perverse outcomes• Submission on reform to WorkCover Feb 07• WorkCover is open to suggested improvements• Targeting July 07 for completion of review
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
SISA• Late 06 - focus was on replacement of lost staff• Dealing with regulator policy & its impact on SIs• Improving communication with members• Upping the tempo of membership participation• Upgrading IT • Improving professionalism of image and activity• Systematising advocacy tools & resources• Gaining presence in public policy initiatives• Aiming for a smarter and more agile organisation
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
The SISA website is updated daily with news and events. You are urged to
review it regularly –
www.sisa.net.au
STRATEGIC PRIORITIES 07-08• Looking to move premises• Strengthening SISA’s asset & business base • Reinforcing credibility through self insurers’ roles as
corporate citizens eg:• Pooling of retraining & job placement resources• Acting as mentors in regulatory safety improvement
programs for small, & medium size business• Playing a role in community health & safety projects
• Positioning SISA as the ‘go-to’ place for advice, advocacy & balanced feedback
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
Our messageSelf insurers demonstrate leadership in OH&S and injury management & we are happy to act collaboratively to share that expertise. However…Self insurers will not be political or regulatory sitting ducks – expect energetic, agile, informed, targeted and effective opposition to policy and legislation that unnecessarily damages business, employment and the competitiveness of the State economy.
SELF INSURERSINSURERS OF SOUTH AUSTRALIA INCEmployers Managing Their Own Risk
