NZ GVT issued a new consultation on a suite of proposed changes to be made to the Accident Compensation Corporation's (ACC's), accredited employers program (AEP).
Accredited Employers Program
The AEP allows sufficiently large employers to stand in ACC’s shoes to make cover and entitlement decisions and manage employees’ claims for all work injuries and diseases.
In return for taking on this financial liability, all accredited employers (AEs) receive a substantial reduction in the employer levy they would then otherwise pay to the ACC.
The premise is employers may be able to provide more efficient experience for injured workers than ACC, as they should have a closer relationship with all their employees.
Only employers accredited by ACC can participate in AEP, and involves meeting the financial strength requirements, and being able to demonstrate sufficient experience and expertise in workplace health and safety, and claims and injury management.
Consultation Basis
The proposed changes to AEP include introducing a performance monitoring model to allow for a much better measurement of the performance of all of the accredited AEs.
To strengthen entry and participation requirements for AEs requiring external health and safety assessments, and assessment of claims and injury management processes.
Also, to be able to provide a much more tailored pricing option across all of the AEs.
The consultation also includes details of a preliminary proposal to require full and final claims liability settlement for all AEs, as part of a wider proposed Full Self Cover plan.
Effectiveness
All submissions to the consultation are due by 5:00 pm on Nov. 6, 2022.
Oct. 11, 2022 Press Release
On Oct. 11, 2022, NZ GVT published a press release outlining the proposed changes to ACC’s Accredited Employers Program to better support injured workers and employers.
Minister for ACC, Carmel Sepuloni, commented AEP plays an important role, enabling large employers to stand in the shoes of ACC in dealing with workplace injury claims.
At its best, AEP enables employers to provide a better experience for injured workers, and to support them all to recover fully from their injuries, and return to good work.
The package of four proposals aims to tighten the standards, as well as monitoring of accredited employers, with a performance rating and an improved worker experience.
NZ GVT is committed to better support injured workers on the journey back to work.
It knows this program does deliver positive outcomes, and that it currently delivers better return to work outcomes for employees, and it is important to maintain this.
In Oct. 2022, NZ GVT announced framework on occupational diseases, see #151447.
Jul. 2023 Consultation Response
On Jul. 6, 2023, NZ GVT said proposed changes to ACC's AEP generally well supported.
Issued a summary of the 65 public submissions to the proposed changes to ACC’s AEP.
Many shared concerns that the changes would shoulder them with an increase in cost, time and resourcing in order to meet the new, enhanced requirements of the program.
Although submitters supported the proposal to move towards externalized health and safety assessments, nearly all submitters raised concerns with the proposal.
Supported changes to claims/injury management, introduction of performance monitoring model; few responses to pricing options for partnership discount plan.
Preliminary proposal on requiring full and final settlement for the full self cover plan received fewer responses, submissions were mixed, majority did not support changes.
Some submitters said that optional full and final settlement would be more agreeable.
Changes will take effect from Apr. 1, 2025 with a transition year from Apr. 1, 2024.
Gives accredited employers and ACC time to prepare and adapt processes, systems.
Changes focus on claims and injury management assessment, performance monitoring, new health and safety assessments and updated pricing options.
In Mar. 2024, NZ GVT gazetted amendments re accredited employers, see #205478.
Apr. 2024 Implementation
On Apr. 2, 2024, NZ GVT confirmed the changes to the accredited employers program.
The amended accredited employers program will be effective from Apr. 1, 2025 with 1 years notice, so accredited employers, ACC have time to adapt processes and systems.
