WorkCover unfunded liability $222 million to $1.17 billion!

According to a press release on the [popup url=’http://www.saliberal.org.au/Media/MediaReleases/tabid/79/articleType/ArticleView/articleId/217/222-million-blowout-in-WorkCovers-unfunded-liability-now-117-billion.aspx ‘] Liberal SA website [/popup] – dated 23 March 2012- the latest actuarial figures to 31 December last year show the unfunded liability has exploded from $952 million to $1174 million in just six months. WTF!

$222 million blowout in WorkCover’s unfunded liability – now $1.17 billion!

Mar 23, 2012

Hon Rob Lucas MLC

Shadow Minister for Finance


$222 million blowout in WorkCover’s unfunded liability – now $1.17 billion!

Another blowout – this time $222 million – has taken WorkCover’s unfunded liability back over $1 billion.

The latest actuarial figures to 31 December last year show the unfunded liability has exploded from $952 million to $1174 million in just six months.

The unfunded liability was just $55 million in June 2001. The following table shows the diabolical performance of WorkCover under the Labor Government:

Year    Amount ($m)
2000/01    55.5
2001/02    192.4
2002/03    591.1
2003/04    572.1
2004/05    652.1
2005/06    694.1
2006/07    843.5
2007/08    984
2008/09    1,059
2009/10    982
2010/11    952
As at 31 Dec 2011    1,174

“Labor’s management of WorkCover has been an unmitigated disaster with employers still paying the highest levies in the nation and the scheme suffering from the worst return-to-work figures in the nation,” Shadow Finance Minister Rob Lucas said.

“When the Labor Government introduced their controversial amendments to the legislation in 2008 they claimed their actuarial advice was the scheme would be fully funded within five to six years! It is clear this will be yet another Labor broken promise.

“In summary, after a decade of Labor the unfunded liability has blown out by more than $1 billion,” Shadow Finance Minister Rob Lucas said.

“Labor can’t lay all the blame on global economic conditions, because for most of the past 10 years there was strong national economic growth, yet the unfunded liability rose year after year.”

[popup url=’http://www.saliberal.org.au/Media/MediaReleases/tabid/79/articleType/ArticleView/articleId/217/222-million-blowout-in-WorkCovers-unfunded-liability-now-117-billion.aspx ‘] View original article on Liberal SA’s website>> [/popup]

WorkCover deficits ‘unmitigated disaster’

STATE WorkCover schemes are suffering worsening deficits, with the losses in South Australia now more than $1 billion.

A $222 million blowout in the unfunded liability of the South Australian scheme has created more headaches for the government and businesses struggling to pay growing premiums.

The latest actuarial figures to December 31 show the unfunded liability has grown from $952m to $1.174bn in just six months. The unfunded liability was $55m in June 2001.

The state-based WorkCover schemes oversee the compensation of employees injured in workplace accidents.

An audit by the NSW Auditor-General in November found the NSW WorkCover scheme had a deficit of $2.4bn.

The report said the deficit grew by $900m in the year to June 30 as workers found new ways to exploit the scheme, which struggled under the weight of losses already sustained during the global financial crisis. The South Australian opposition finance spokesman, Rob Lucas, said yesterday that Labor’s management of WorkCover had been an “unmitigated disaster”.

“Employers are still paying the highest levies in the nation and the scheme is suffering from the worst return-to-work figures in the nation,” Mr Lucas said.

“When the Labor government introduced their controversial amendments to the legislation in 2008 they claimed their actuarial advice was the scheme would be fully funded within five to six years. It is clear this will be yet another Labor broken promise. Labor can’t lay all the blame on global economic conditions, because for most of the past 10 years there was strong national economic growth, yet the unfunded liability rose year after year.”

SA Treasurer Jack Snelling yesterday said the underlying performance of WorkCover was still strong. “The reasons for an increase in the unfunded liability is because of reduced earnings on assets due to global economic factors as well as a reduction in the discount rate,” he said.

[Source: http://www.theaustralian.com.au/national-affairs/workcover-deficits-unmitigated-disaster/story-fn59niix-1226308682150]

 

Shortlink: http://workcovervictimsdiary.com/?p=6221

 

 

2 Responses to “WorkCover unfunded liability $222 million to $1.17 billion!”

  1. Holy cow, who is responsible for monitoring the investments and return on investments of the scheme? They should have a private little chat to this dude I would think! For f*ck’s sake, what is wrong here – where is all that money going, come on! It’s FISHY to say the least!!! And then they BLAME it on “the benefits” given to the poor injured workers? OM(F)G! Make all of us look like WE are MILKING the system? Who is milking who here? Sounds like big CORRUPTION to me….

  2. to the boofhead that wrote the report, new ways to expliot the scheme you poor excuse for a dipstick hey please go back to the big table with all the bozo’s that work with you and give a bit of thought as to how to  fix the problem hey im not einstien but ask me and ill steer you in the right direction