WorkCoverSA (South Australia) announced a profit of $77M for the full financial year with the Scheme recording an unfunded liability of $982M . The Scheme is now 61.5% funded – an improvement of five percentage points – compared with 56.7% at the same time last year.
Rob Thomson, CEO WorkCover said this is an improvement on the previous year when the corresponding figures were a loss of $75m and an unfunded liability of $1.059bn. (WCxKit)
The second half of the financial year was significantly affected by approximately $100m in adjustments from economic factors outside the control of the Scheme – primarily movements in long term interest rates.
“I’m pleased to see WorkCover’s financial results moving in the right direction,” Thomson commented. “We have still managed to end the year with a profit and without the impact of the economic factors WorkCover’s results would have been even better,” he said.
The positive results for WorkCover continue in relation to the recent trend of improvements in WorkCover’s claims liability.
“For the fifth half-year in a row WorkCover has recorded a claims result which is better than projected by its actuary,” Thomson said.
In addition to its financial results Thomson also announced (on behalf of the WorkCover Board) the extension of WorkCover’s claims management agreement with sole claims agent, Employers Mutual. This means Employers Mutual will continue to provide claims management services to the State’s injured workers and their employers until Dec. 31, 2012.
“In making this decision the Board took into account a range of factors, including that Employers Mutual had substantively met its performance requirements. At the current time the Scheme is experiencing significant change in the areas of work capacity reviews, medical panels and redemptions, which is coupled with the introduction of a completely new IT system.
“The Board felt an extension was the most efficient way of maintaining service delivery and achieving the best position for the Scheme during this period of significant change,” Thomson added.
The WorkCover Board will continue to monitor Employers Mutual’s performance and will reassess its position in 2012. (WCxKit)
“In the meantime the Scheme remains focused on providing appropriate treatment for injured workers and where possible keeping them at work and where not, supporting them to return to work as quickly and safely as possible,” Thomson said.
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