The South Australian Return to Work Scheme has reported a strengthening of its financial position to the sum of a $370 million surplus, an improvement of $350 million over the last six months.
The announcement follows a series of unprecedented claims liability releases, totalling $508 million over the last 18 months, which have resulted from improved claims performance in the Scheme.
The result reflects a dramatic turnaround for the South Australian Scheme; in March 2015 ReturnToWorkSA announced the Scheme was fully funded, reporting a $20 million surplus of funds.
ReturnToWorkSA has made a further announcement highlighting more improvements to the financial performance of the Scheme.
Shaun Meehan, GB General Manager – SA Workers Compensation, has recognised the efforts of his team, noting this result is something to be very proud of.
“The hard work, dedication and ability to accept change is why this position has turned around so dramatically during GB’s short time in South Australia.”
When GB first commenced in the scheme in 2013:
- Average premium rate paid by employers was 2.75%. The true premium rate was over 3%
- Unfunded liability was $1.366 Billion (debt)
- The funding ratio was only 63.7%, a shortfall of 36.3%
The position of the scheme now in 2015:
- Average premium rate paid by employers 1.95% – Down by 29%
- Positively funded by $370 million – Improved financial position totalling $1.736 billion
- Funding ratio of 114% – Improved result by over 50%
Gallagher Bassett has helped South Australian workers to return to work faster and made it more competitive for South Australian employers to do business.
Click here to read ReturnToWorkSA’s article announcing the improvement.
