Closed for feedback

What could happen when an AE leaves the programme?

We want to know if our proposed exiting process is on the right track?

Our proposed exiting process

An exit process may be triggered if:

  • An AE’s performance has been consistently poor over an extended period, they have failed to make improvements and have been incrementally moved to the lowest levy discount rate over time.
  • An AE fails to renew a component of accreditation (after any potential grace period has lapsed).
  • The AE decides to exit AEP (voluntary).

If exit is voluntary, the AE will manage existing claims until the end of the levy cycle.

If we’re enforcing exit, timing will depend on the severity of the performance issue that the AE is facing. We also reserve the right to enforce immediate exit.

Under any circumstances we’ll conduct an actuarial valuation of liability, and work with the AE to create a transition plan that considers how workers might be affected.

Full and final handback will take place and we’ll agree with the AE what the cost to pay is. Any claims that reactivate after this will be managed and paid for by ACC.

Following any kind of exit there will be stand-down period from the programme for a full claims management period.

More information

To get a better understanding of how it could work, see our scenario on exiting the programme.

Download scenario 7. Exiting the programme.

Current state

Very few AEs leave the programme, even if performance is poor. If an AE does exit, the handback process can be drawn out, and does not focus on ensuring a smooth transition for workers.

Failure to meet financial eligibly criteria results in exit from the programme.

Future state

Exit is enforced as a consequence for sustained poor performance and failure to improve. We determine the timing for exit and plan a transition with the AE that balances the desire for an administratively ‘clean’ exit with the interests of workers.

When an AE exits, there is a full and final handback of all claims to us, supported by a full actuarial valuation to determine the total claims liability.

 

Key AEP insights 2017 2018
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Closed for feedback

We have further developed and road tested the proposed changes to AEP with your help. The next step is to review your feedback. 

Jun 2019
Phase two open for feedback

We'll 'unpack' key priority areas with you and develop areas of the programme that require more work.

Aug 2019
Phase three open for feedback

We'll work with you to polish and consolidate the proposed changes to the programme. 

Proposed changes to AEP finalised

ACC Board and Minister for ACC to review our proposal 

2020 Levy Consultation

Proposed changes to AEP included in the 2020 Levy Consultation