Transmittal Certificate
Compliance Statement
The 2018-19 Public Sector Workers Compensation Fund Annual Report must comply with the Annual Reports (Government Agencies) Directions 2019 (the Directions) made under section 8 of the Annual Reports (Government Agencies) Act 2004. The Directions are found at the ACT Legislation Register.
The Compliance Statement indicates the subsections, under the six Parts of the Directions, that are applicable to the Public Sector Workers Compensation Fund (the PSWC Fund) and the location of information that satisfies these requirements.
Part 1 Directions Overview
The requirements under Part 1 of the Directions relate to the purpose, timing and distribution, and records keeping of annual reports. The 2018-19 Public Sector Workers Compensation Fund Annual Report complies with all subsections of Part 1 under the Directions.
In compliance with Section 15 Feedback, Part 1 of the Directions, contact details for the PSWC Fund are provided within the 2018-19 Public Sector Workers Compensation Fund Annual Report to provide readers with the opportunity to provide feedback.
Part 2 Agency Annual Report Requirements
The requirements within Part 2 of the Directions are mandatory for all reporting entities and the PSWC Fund complies with all subsections. The information that satisfies the requirements of Part 2 is found in the 2018-19 Public Sector Workers Compensation Fund Annual Report as follows:
- A. Transmittal Certificate, see page 401;
- B. Organisational Overview and Performance, inclusive of all subsections, see page 403-410; and
- C. Financial Management Reporting, inclusive of all subsections, is contained within the CMTEDD Annual report.
Part 3 Reporting by Exception
The PSWC Fund has nil information to report by exception under Part 3 of the Directions for the 2018-19 reporting period.
Part 4 Directorate and Public Sector Body Specific Annual Report Requirements
Part 4 of the 2019 Directions is not applicable to the PSWC Fund.
Part 5 Whole of Government Annual Reporting
All sections of Part 5 of the Directions apply to the PSWC Fund. Consistent with the Directions, the information satisfying these requirements is reported in the one place for all reporting entities, as follows:
- L. The 2018-19 Justice and Community Safety Annual Report includes the following subsections:
- L.1 Bushfire Risk Management;
- L.2 Human Rights;
- L.3 Legal Services Directions;
- M. The 2018-19 CMTEDD Annual Report includes the annexed 2018-19 Director of Territory Records Annual Report (see page 345); and
- Public Sector Standards and Workforce Profile, see the 2018-19 ACT Public Service State of the Service Report.
View the ACT Public Service directorate annual reports.
As required by Australian Auditing Standards, the ACT Audit Office checks financial statements included in annual reports (and information accompanying financial statements) for consistency with previously audited financial statements. This includes checking the consistency of statements of performance with those statements previously reviewed (where a statement of performance is required by legislation).
Organisational Overview and Performance
B.1 Organisational Overview
The Public Sector Workers Compensation Fund (PSWC Fund) is established under the Public Sector Workers Compensation Fund Act 2018 (the Act) and commenced operations on 1 March 2019.
The Act provides a financial and prudential governance framework to support the Territory’s workers’ compensation self‑insurance arrangements under the Safety, Rehabilitation and Compensation Act 1988 (SRC Act).
The Public Sector Workers Compensation Fund Act 2018 (the PSWCF Act) is administered by CMTEDD. The functions of the PSWC Fund are supported by the Workplace Safety and Industrial Relations Group, CMTEDD.
Functions
The PSWC Fund was designed to ensure the effective management of the Territory’s workers’ compensation assets and features governance and management arrangements in relation to those assets. The PSWC Fund is an integral part of the Territory’s compliance with its self‑insurance licence.
The PSWC Fund is administered by the Public Sector Workers Compensation Commissioner (PSWC Commissioner) who is responsible for:
- managing the PSWC Fund;
- advising the Minister about the administration, efficiency and effectiveness of the PSWC Fund; and
- in relation to a licence granted to the Territory under section 103 of the SRC Act:
- managing the Territory’s liability under the SRC Act; and
- managing claims under the SRC Act.
The PSWC Fund is funded by the Territory from premium amounts apportioned by the PSWC Commissioner amongst Territory directorates and agencies. Funds are invested, with earnings retained in the PSWC Fund, to help meet workers’ compensation costs.
Internal Accountability
On 14 February 2019 Michael Young, Executive Group Manager, Workplace Safety and Industrial Relations, CMTEDD was appointed to the role of the PSWC Commissioner, with effect on commencement of the PSWC Fund.
Section 24 of the PSWCF Act establishes a PSWC Advisory Committee with the following functions:
- to keep informed of the operations of the PSWC Fund to provide advice to the Minister in relation to the fund; and
- to assist in meeting the Territory’s liabilities under the SRC Act by providing advice about claims management in relation to injured employees of the Territory.
Section 26 of the PSWCF Act stipulates the advisory committee consists of:
- the PSWC Commissioner;
- three members appointed by the Minister to represent the interests of workers; and
- two members appointed by the Minister to represent the interests of public sector bodies and Territory instrumentalities.
The Chair of the advisory committee as at 30 June 2019 was Mr Michael Young, PSWC Commissioner.
As the PSWC Fund only commenced on 1 March 2019, the PSWC Fund Advisory Committee met once during 2018–19.
Membership of the PSWC Fund Advisory Committee during the year and the number of meetings each member attended is as follows:
Name | Role | Meetings attended |
|---|---|---|
Michael Young, PSWC Commissioner | Chair | 1 |
Penny Shields | Member | 1 |
Susie Walford | Member | 1 |
Alex White | Member | 1 |
Patrick Judge | Member | 1 |
Melissa Payne | Member | 1 |
B.2 Performance Analysis
Explanation of performance indicators
For the four months from 1 March 2019 in the 2018-19 financial year, performance indicators were set for the PSWC Fund under the Financial Management (Performance Criteria) Amendment 2019 (No 3) (NI2019-). Two accountability indicators have been set for the Fund, which was only in operation for four months of the 2018-19 financial year.
Reducing the ACT public sector incidence of serious workplace injury
The new self-insurance arrangements for the ACT Government’s public sector workers’ compensation liabilities under the SRC Act will mean that the ACT Government has greater influence over the outcomes for injured workers in the ACT public sector.
This accountability indicator covers public sector injury prevention activities and aligns with targets from the Safe Work Australia National WHS Strategy 2012-22. This accountability indicator measures the number of ACT public servant workers’ compensation claims resulting in absence from the workplace of one week or more, per 1,000 employees.
Improved performance in relation to serious workplace injuries is indicative of improvements in injury prevention and management, for example from programs such as early intervention physiotherapy and safety auditing.
Responsibility for this indicator for the 2018-19 financial year has been maintained with Workplace Safety and Industrial Relations Group, CMTEDD. However, as the PSWC Fund has responsibility for the management of ACT public sector workers’ compensation liabilities from 1 March 2019 the same indicator has been reported for the PSWC Fund for the 2018-19 financial year. From 2019-20 the Budget reflects that this indicator will move to the PSWC Fund for ongoing reporting and performance measurement.
Maintaining a PSWC Fund asset to liability ratio greater than or equal to 100%
This accountability indicator aligns with the PSWC Fund requirements under the Public Sector Workers Compensation Fund (Investment and Funding Ratio) Management Guidelines 2019 (No 1).
An asset to liability ratio of 100% or more indicates that the fund contains sufficient assets to meet the expected lifetime cost of public sector workers’ compensation claims.
Highlights
The key priorities for the PSWC Fund during the 2018-19 financial year were to:
- commence operations on 1 March 2019;
- manage the transitional arrangements with the Commonwealth including the transfer of over 29,000 existing claims to the Territory from Comcare;
- to ensure the PSWC Fund was funded to meet its liabilities in 2018-19.
- Against these priorities:
- the PSWC Fund commenced operations on 1 March 2019, this timing coincided with the commencements of the Territory’s self-insurance licence under the SRC Act;
- as part of the transition to self-insurance arrangements, the PSWC Fund’s activities included a survey of ACT public sector injured workers to test injured worker’s satisfaction with the Fund’s operations during transition; and
- initial funding sources for the PSWC Fund in managing workers’ compensation liabilities included an initial payment from the Commonwealth and the transfer of ACT public sector workers’ compensation assets held by the ACT Insurance Authority.
Engagement and Support
Workers were engaged at a high level and consulted about the plan to become a workers’ compensation self-insurer in several ways.
Emails from the Head of Service, posters and desktop screensavers were used to advise staff of the government’s intentions and next steps. To provide more detailed information, employees were also invited to participate in two-way consultation including the ‘Your Experience Survey’, Lunchbox Sessions, Q&A Sessions and Focus Groups and a dedicated email address was set up for questions to be posed to the self-insurance project team.
The ACT Government also initiated a self-insurance advisory group with union representatives. Among other things, this supported the consultative design of a best practice framework which was used to design the self-insurance business model.
Transition management and activities
On 8 June 2019 the ACT Government reached a milestone of 100 days since commencing operations as a self-insurer under the Safety, Rehabilitation and Compensation Commission Act 1988. As part of this, the PSWC Fund was responsible for overseeing the:
- transfer of 29,361 claims from Comcare to the PSWC Fund;
- transferring 789,602 documents from Comcare associated with the management of ACT public sector workers’ compensation claims; and
- receipt of 109,500 new documents associated with the management of ACT public sector workers’ compensation claims since 1 March 2019.
User feedback has been positive and included the following indicative extracts:
“My sincere thanks to both of you for making this a very smooth and efficient transition. I do understand that the volume of paperwork and information which needs to be provided to EML from Comcare is huge. Mine has been a long, on-going claim and I appreciate the care and support you have provided.”
“My case manager was very supportive and discussed what was happening at each step of the way. I was not uncertain or in the dark about any aspect of what was being done.”
“Your case managers have been fantastic at keeping me in the loop with regard to … claims, copying me in on their determinations and other matters.”
Claims
The total number of open claims as at 28 February 2019 on transfer to the ACT Government as a self-insured licensee under the Safety, Rehabilitation and Compensation Commission Act 1988 were 1,260 claims.
Total claims opened during the reporting period* | 173 |
|---|---|
Total claims closed during the reporting period* | 186 |
Total reopened claims during the reporting period* | 57 |
Current open claims | 1,304 |
Note:*The reporting period for the Public Sector Workers Compensation Fund is from 1 March 2019-30 June 2019
Outlook
In 2019-20 the PSWC Fund will pursue strategic and operational priorities in undertaking its functions, including:
- develop and deploy best practice health, wellbeing and return to work strategies, policies and interventions for the ACT public sector;
- ensure the effective and efficient management of new and existing Territory workers’ compensation claims;
- finalise transitional arrangements with the Commonwealth, including the final assessment of transferred claim liability and associated asset transfers;
- ongoing user surveys to ensure injured worker and directorate satisfaction with the services and arrangements under self‑insurance; and
- review and improve the public sector workers’ compensation premium pricing model.
B.3 Scrutiny
Scrutiny of the PSWC Fund’s activities is undertaken by a number of bodies including Committees of the ACT Legislative Assembly, the ACT Auditor-General and the ACT Ombudsman. During the reporting period, the PSWC Fund did not participate in any Legislative Assembly Committee inquiries related to its activities. There were no Ombudsman or Auditor-General reports in 2018-19 in relation to the PSWC Fund.
B.4 Risk Management
The functions of the PSWC Fund are supported by the Workplace Safety and Industrial Relations Group, CMTEDD. As such, it is covered in CMTEDD’s risk management arrangements.
B.5 Internal Audit
The PSWC Fund is part of the CMTEDD for the purposes of the Audit and Risk Committee. CMTEDD’s Annual Report section on Internal Audit Committee applies to the PSWC Fund. No internal audits of the PSWC Fund were undertaken during the reporting period for the Fund.
B.6 Fraud Prevention
The functions of the PSWC Fund are supported by the Workplace Safety and Industrial Relations Group, CMTEDD. As such, it is covered in CMTEDD’s Fraud and Corruption Prevention Plan.
B.7 Freedom of Information
The PSWC Fund does not directly employ personnel. The FOI functions of the PSWC Fund are supported by the Information and Access Team of the Corporate Group, CMTEDD.
B.8 Community Engagement and Support
CMTEDD’s Annual Report section on Community Engagement and Support applies to the Public Sector Workers Compensation Fund.
B.9 Aboriginal and Torres Strait Islander Reporting
The PSWC Fund does not directly employ personnel. The CMTEDD’s Annual Report section on Aboriginal and Torres Strait Islander Reporting applies to the PSWC Fund.
B.10 Work Health and Safety
The PSWC Fund does not directly employ any personnel. The functions of the PSWC Fund are supported by the Workplace Safety and Industrial Relations Group, CMTEDD which adheres to the directorate’s Workplace Health and Safety practices.
B.11 Human Resource Management
The PSWC Fund does not directly employ personnel. The functions of the PSWC Fund are supported by the Workplace Safety and Industrial Relations Group, CMTEDD.
The CMTEDD’s Annual Report section on HR management applies to the PSWC Fund.
B.12 Ecological Sustainable Development
The CMTEDD’s Annual Report section on Human Resources Management applies to the PSWC Fund.
Financial Management Reporting
C.1 Financial Management Analysis
Details of the PSWC Fund’s 2018-19 Financial Management Analysis are included in Volume 2.2 of the 2018-19 CMTEDD Annual Report.
C.2 Financial Statements
The PSWC Fund’s financial statements are reported in Volume 2.2 of the 2018-19 CMTEDD Annual Report.
C.3 Capital Works
The PSWC Fund did not have any capital works expenditure during the reporting period.
C.4 Asset Management
The PSWC Fund has no physical or intangible assets under management. The PSWC Fund has some capacity to invest funds over the medium and long term.
C.5 Government Contracting
The Territory, and pursuant to section 30 of the PSWCF Act, the PSWC Fund is taken to have engaged for the purposes of that Act a claims manager responsible under section 23 for the following:
- investigate claims;
- assess the Territory’s liability in relation to claims under the SRC Act, including initial liability and ongoing liability;
- calculate benefits and authorise payments under the SRC Act;
- pay an amount in relation to a provisional liability medical cost;
- pay an amount in relation to a claim;
- manage claims data;
- manage disputes in relation to claims made against the Territory under the SRC Act; and
- anything else prescribed by regulation under the PSWCF Act.
The procurement selection and management processes for the claims manager complied with the Government Procurement Act 2001 and the Government Procurement Regulation 2007.
Contract Title | Procurement Methodology | Contractor Name | Contract Amount | Execution Date | Expiry/ |
|---|---|---|---|---|---|
Workers Compensation Claims Administration Services | Open tender process | Employers Mutual Limited (EML) | $35,578,762 | 10/10/2018 | 28/02/2023 |
C.6 Statement of Performance
The PSWC Fund’s Statement of Performance is included in Volume 2.2 of the 2018-19 CMTEDD Annual Report.
Further information can be obtained from
Michael Young
Public Sector Workers Compensation Commissioner
Public Sector Workers Compensation Fund
+61 2 6207 0268
Michael.Young@act.gov.au