Introducing the NZAAE
The NZAAE is an incorporated society comprised of employers who manage their ACC claims
through the Partnership Discount Programme (PDP) or the Full Self Cover option under the
Accredited Employer Programme (AEP). The NZAAE includes members who are not Accredited
Employers but have an interest in the programme such as Third Party Administrators, Actuaries, and
insurers. Our members collectively employ over 130,000 full time equivalent employees.
The NZAAE provides a united voice for our members so that our interests can be represented to
ACC and the Minister. We also maintain a close relationship with similar groups in Australia
because there is much that can be learned from the Australian experience of self insurance.
After full review of the 2014/2015 Pricing Report and Levy Consultation Documents, as well as
previous years Consultation Documents (excluding 2011/2012) NZAAE would like to make the
Table 1 below indicates the effect of the residual levy and funding adjustments of the past six years
and uses information provided by ACC and best estimations on future years projections. (Data from
2011/2012 was not examined but has been included for completeness).
Graph 1 indicates the comparative difference between funding adjustment and residual levy
collection as it is expressed in the combined work account levy. The New Claims Levy collects the
fully funded levy for claims incurred in the year it is collected. It is important to note that it is only
the New Claims Levy that is discountable for levy incentive purposes for the Accredited Employer
Table 1: Levy Consultation Data from 2008 to 2022 (2011/12 data not available)
Graph 1: Effect of Residual Levy and Funding Adjustment on New Claims Levy