Focus on ACC

Falling rehabilitation rates for people on ACC will lead to $700 million in increased liabilities, ACC Minister Nick Smith said today.

Dr Smith told Parliament that rehabilitation rates had been declining since 2005 when they stood at 69 percent and were down to 63 percent in 2009.

This meant that the unfunded liabilities for ongoing costs of care and compensation would rise by $700 million.

Dr Smith also told MPs that the Government had handed over another $97 million to ACC to meet shortfalls in the non-earners account.

This is the last tranche of a total of $300 million approved by Cabinet in December and Dr Smith said solvency of the fund continued to be monitored.

ACC had originally asked for $375 million to prop the account.

The non-earners account provides accident insurance for people who do not work, such as beneficiaries and children.

NBR

Comments (1)

Show/hide comments

Show/hide comment form