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