CORRECTION: WORKCOVER OMBUDSMAN

The following statement was made to the Bob Francis Program on 5AA radio on Thursday 17 June 2010.

In response to Bob Francis' comment on radio last night about there being a need for a WorkCover Ombudsman.

We write to confirm that South Australia does have a WorkCover Ombudsman who is independent of the government, WorkCoverSA, Employers Mutual Limited, self-insured employers, unions and employer groups and must act impartially and in the public interest.

The Ombudsman is a statutory officer appointed by the South Australian State government to provide free advice and assistance to injured workers and employers who have a complaint about the South Australian workers compensation scheme. The Office of the WorkCover Ombudsman is established pursuant to Part 6D of the Workers Rehabilitation and Compensation Act 1986 (SA) and commenced operation on 1 July 2008.

The role of the WorkCover Ombudsman is to:

• review decisions to cease weekly payments to injured workers
• receive, investigate and seek to resolve complaints from workers, employers and other interested parties about the way services are delivered in the WorkCover Scheme
• investigate issues associated with the rehabilitation and return to work of injured workers (eg, employer obligations, delivery of rehabilitation services, breaches of confidentiality, provision of information)
• identify problems arising from the operation or administration of the Workers Rehabilitation and Compensation Act 1986 (SA)
• encourage and assist WorkCoverSA and employers to establish their own processes for handling complaints.

The Office of the WorkCover Ombudsman can be contacted on 1800 195 202 (free call), (08) 8463 6593 (telephone) or by email to owo@saugov.sa.gov.au

More information is also available on the Office of the WorkCover Ombudsman at www.wcombudsmansa.com.au

CORRECTION: WORKCOVER PREMIUMS

The following statement was provided to The Advertiser on Monday 7 June 2010.

From 1 July 2010, most South Australian employers will pay less in levies to WorkCover. Most industry levy rates have been reduced due to the combination of the redistribution of money from the Bonus Penalty Scheme and the reduction in the average levy rate from 3.00% to 2.75%.

CORRECTION: PROVIDER PAYMENTS

The following statement was made to the Leon Byner Program on 5AA radio on Friday 4 June 2010.

The below comment can be attributed to Jeff Matthews, Deputy CEO:

We do not have a computer glitch and providers payments have not been delayed by two months. We have informed the AMA that service levels will be back to normal levels within two months.

Due to the transition to our new IT system, some of our processing has not occured as quickly as it has in the past. Usually we pay providers within seven days of receiving an invoice even though our normal trading terms are within 30 days.

Before the new IT system was implemented, we wrote to all providers and their associations to give them advance notice to expect delays during this period. The majority of our payments are still being made within 30 days.

We are working as quickly as possible to catch up on the processing. Staff have been working weekends and additional teams have been put on. To further speed up the process, we will now be further increasing staff levels.

There is a process in place if people are experiencing financial difficulties. If you become aware of any providers who are experiencing significant financial difficulty please direct them to WorkCover's Service Improvement Unit on 13 18 55 (immediately press 3 then 2 if you want to ignore the prompts) so their situation can be considered as quickly as possible.

CORRECTION: BUSINESS SA REPRESENTATION SERVICES FOR EMPLOYERS

The following statement was made to the Bob Francis Program on 5AA radio on Thursday 13 May 2010.

Dear Bob

On Wednesday's evening program, caller Laury Bais raised an issue about WorkCover. Caller Rosemary then said that up until 12 months ago, she would have suggested Bais go to Business SA as they had an advisory unit through WorkCover but that the previous Minister cancelled funding for this unit.

We would like to clarify that Business SA still offers small business owners a free workers compensation representation service (funded by WorkCover), and can represent eligible employers at the Workers Compensation Tribunal.

Could you please clarify with your listeners that this service still exists and the Minister did not cut the funding to this service.

Employers can find out if they qualify for the free workers compensation representation service by calling (08) 8300 0101 or can visit
www.business-sa.com.

WorkCover Board Chair Mr Philip Bentley has today announced the appointment of Mr Rob Thomson from New South Wales as the new Chief Executive Officer of WorkCoverSA.

Click here for more information

WorkCoverSA has reported a $148m improvement in its financial position and a drop in the average levy rate which will be welcome news for the State's employers, with the release of new figures today.

Click here for more information

Nominations for WorkCoverSA's fourth annual Recovery and Return to Work Awards open today.

The awards honour the achievements of people who recover and return to work after a workplace injury and those who help them succeed.

Click here for more information

WorkCover Board Chair, Philip Bentley today announced that CEO Julia Davison has notified the WorkCover Board and the Minister for Industrial Relations of her intention to leave the role mid-year.

Click here for more information

This weekend WorkCoverSA is launching the latest phase of its return to work awareness, which for the first time features real injured workers. The key focus of the campaign is to highlight the importance of returning to work after a workplace injury.

Click here for more information

A report today by the Advertiser that "WorkCover's unfunded liabilities are $40 million higher than the figure the Government and the corporation tabled in Parliament yesterday" is incorrect.

Click here for more information

WorkCoverSA has reported its financial position has all but turned around over the second half of the year with new figures released today showing a gain of $238m, which largely cancelled out the negative impacts of the first half of the year.

Click here for more information

A man whose toes were amputated following immersion in a 540° molten metal bath and a young girl who severed an artery, two nerves and 12 tendons in her hand are two of the inspirational winners of WorkCoverSA's third annual Recovery and Return to Work Awards.

Click here for more information

UPDATE: 14 September 2009

On Friday, 20 February 2009 Mr Jeffrey Thompson's application to the Full Court of the Supreme Court for leave to appeal Justice Kelly's decision was granted by the Full Court in private.

On 4 September 2009 the Full Court, comprising of Justices Bleby, Gray and Leyton, allowed Mr Thompson's appeal from the decision of Justice Kelly and set aside the orders made by her on 22 July 2008 and 19 December 2008.

The Full Court also set aside all other orders made by the Adelaide Magistrates' Court and substituted them with an order that the whole of the complaint and summons be dismissed.

The State Government has announced the start of a range of innovative projects designed to help people return to the workplace after they have been injured and off work for a long time.

Click here for more information

CORRECTION: LEVY PAYMENT

The following statement was made to the Leon Byner Program on 5AA radio on Tuesday 16 June 2009.

We would like to clarify the new levy in advance payment system which was discussed with caller Kat on this morning's program. The new system of paying levy in advance rather than in arrears aligns the South Australian WorkCover levy payment system with other workers compensation schemes across Australia.

Regardless of whether Kat is considering terminating a staff member she would still be required to estimate the staff members' wage on the 2009-10 remuneration return. Her levy payable would then be calculated on that basis. However, during the year if there is a change she could notify WorkCover as soon as this happens and we can adjust the levy payable or she could leave it to the end of the financial year to fill out a reconciliation statement and receive a refund from WorkCover.

If Kat, or any other employer, is having concerns about the levy payment system we encourage them to contract the WorkCover Service Centre on 13 18 55 - our staff will be only too happy to walk employers through the changes. Alternatively, there is some helpful information on the WorkCover website including online remuneration calculators and demonstration examples to help employers fulfil their obligations.

A South Australian transport company and its owner have been convicted of failing to register as an employer with WorkCoverSA and have been fined more than $21,000.

Click here for more information

CORRECTION: EMPLOYER LEVY PAYMENTS

The following statement was made to the Leon Byner Program on 5AA radio on Friday, 22 May 2009.

Dear Leon

On Wednesday morning's program caller Jim raised an issue about being fined 1,200% by WorkCover for being late with a levy payment. To clarify, WorkCover does not issue fines of 1,200%.

It is WorkCover's policy to impose a fine on employers who fail to pay the monthly levy when required. A warning is first issued, without a fine. In the event of a failure to comply with the warning, or a subsequent second default, a fine of 25% is imposed with a minimum of $150 and a maximum of $5,000. In the event of a third or subsequent default, a fine of 50% is imposed with a minimum of $150 and a maximum of $10,000. The relevant legislation provides WorkCover with the capacity to impose a maximum fine of 300% of the levy amount.

We assume that caller Jim may have mistakenly commented on his fine being 1,200%, when it may in fact be $1,200.

WorkCover has a robust and fair system for its levy collection process which includes providing advance notice of the levy rate and information for people experiencing financial difficulty.

If an employer has financial difficulty in making a levy payment by the time advised, they should immediately contact WorkCover to discuss the matter. WorkCover may, if satisfied with the particular circumstance, defer the payment of the levy on conditions that we consider appropriate to an individual circumstance.

Further, if an employer believes a decision to impose a fine is unreasonable they can appeal the decision to the WorkCover Levy Review Panel. If still unsatisfied with the result, there remains an avenue of appeal through the court system. However the majority of disputes are resolved without resorting to the courts system.

CORRECTION: RETIREMENT AGE

The following statement was made to the Jeff Burzacott Program on 5AA radio on Thursday, 7 May 2009.

Dear Jeff

On Monday night's program caller Karen raised an issue about Workers Compensation entitlement and retirement age.

To clarify, under the previous legislation the retirement age was defined as 65 or the industry standard, whichever was the lesser.

If you were injured within six months of retirement age, as defined above, or after retirement age you could receive weekly payments for up to six months of incapacity but not for a period of incapacity after the age of 70.

In other words, if you were injured between the age of 64.5 and 69.5 you could receive weekly payments for up to six months of incapacity.

Recognising that this was of considerable disadvantage for older workers remaining in the workforce, the new legislation which came into effect on 1 July 2008 contains new provisions relating to retirement.

Under the new legislation the definition of retirement age is still the same (as outlined above), but if you are within two years of retirement age, or past retirement age, then you are now entitled to two years of weekly payments. Further, there is no longer a "cut off" of weekly payments at 70 years of age.

It would be appreciated if you could clarify this with your listeners.

Industrial Relations Minister, Paul Caica, says improving return to work rates for injured workers is a key Government goal in seeking to improve their lives.

Click here for more information

WorkCoverSA says that any inference that almost 3,000 workers are facing 100 per cent loss of income due to work capacity reviews, is quite misleading.

Click here for more information

Click here for more information

*Correction: This media release inadvertently states that the Scheme was 63.4% funded at 30 June 2008. WorkCover would like to advise that this is incorrect - the Scheme was 60.8% funded at 30 June 2008 and 63.4% funded at 31 December 2007.

CORRECTION: PRESCRPTION MEDICATION

The following statement was made to the Bob Francis Program on 5AA radio on Tuesday, 24 March 2009.

Dear Bob

During last Monday's segment you discussed a call from Paul about his partner being told that a prescription would be more expensive because it was through WorkCover.

I would like to clarify that there is no need to declare that a prescription is for a workers compensation injury as it does not make a difference in terms of cost to the person.

A worker on the workers rehabilitation and compensation scheme may be reimbursed by WorkCover's claims agent, Employers Mutual, for prescriptions that have been prescribed by a medical expert in relation to the treatment of a workplace injury.

It would be appreciated if you could clarify this with your listeners. If your listeners have any further questions, or any queries about WorkCover in general I encourage them to contact us direct on 13 18 55.

CORRECTION: AUDITOR- GENERAL

The following statement was made to the Leon Byner Program on 5AA radio on Tuesday, 4 November 2008.

Dear Leon

Towards the close of your Friday segment you discussed an email from ‘David' about WorkCover's annual report and his assertion that the ‘…the Auditor-General must get involved…'

You mentioned that for the Auditor-General to get involved with WorkCover the relevant minister needs to request it. You may be interested to know that as a result of the recent legislative change, the WorkCover Corporation Act 1994 was amended to require WorkCover to be audited by the Auditor-General, with his responsibilities for WorkCover commencing on 1 July 2008.

The amendment gives employers, employees and the community the same level of transparency and confidence in the operations of WorkCover that other Government business enterprises, audited by the Auditor-General, provide to stakeholders.

THURSDAY, 30 OCTOBER 2008

WorkCover's unfunded liability increased to $984m (compared with $911m at 31 December 2007), after a loss of $140m for 2007-08. The Scheme is 60.8% funded, compared with 63.4% at 31 December 2007.

"Our results are a mixed bag – we collected more in levies and received fewer claims, and our claims performance has improved," said WorkCover CEO, Julia Davison.

"But, like other investors, we have been hit by the global downturn in investment markets, which has contributed significantly to our loss.

"In the positive, the improvement in our claims performance was acknowledged by our actuary in this valuation. It shows a release of our claims liability of $68m over the past six months (when compared to the December forecast), taking into account a range of considerations, outlined in our annual report.

"Employers Mutual's claim management is one of the factors that has contributed positively to WorkCover's result for the year. Against our strategic plan target of $51.5m actuarial release, we achieved $61.8m.

"Our results show that further improvement in return to work remains critical for our Scheme. We are beginning, however, to see that the two-fold solution we now have in place in South Australia will deliver the improvement in return to work outcomes required to turn the Scheme around – that is, better claims management provided by Employers Mutual and legislative change of the Scheme," Ms Davison said.

WorkCoverSA's annual report for 2007-08 was tabled in Parliament today by the Minister for Industrial Relations, the Hon. Paul Caica. The 2007-08 results are the last that relate to performance under the former legislation.

Media enquiries: Simone Williams, WorkCoverSA – (08) 8238 5733 or 0412 500 048

WorkCover manages its investments in accordance with its long-term investment strategy. WorkCover's investment returns in the short -term are therefore subject to changes due to market volatility. Over WorkCover's 20-year history, WorkCover has achieved an annual return of approximately 10%, which is better than the appropriate benchmark return for its investment portfolio. WorkCover has no direct exposure to investments in sub-prime mortgage debt. More information about WorkCover's investment strategy is available at www.workcover.com.

WorkCoverSA today announced a comprehensive review of the Regulations underpinning the Workers Rehabilitation and Compensation Act 1986.

"The Regulation Review provides an opportunity for individuals, community and industry groups to take a comprehensive look at our workers compensation regulations and to provide us with their comments", said Julia Davison, CEO WorkCoverSA.

"We want to ensure the regulations that govern South Australia's workers compensation scheme are consistent with policy, best practice and our return to work focus", she said.

All South Australian regulations are subject to the Subordinate Legislation Act 1978 which includes provisions for the expiry of regulations after 10 years. Many of the regulations administered by WorkCover expire in the next 12 to 24 months.

The public discussion paper is the first phase of external stakeholder consultation and aims to identify the nature and extent of any known problems or issues associated with each regulation.

"Submissions to WorkCover will contribute to the policy development of the new regulations, and subject to Cabinet approval, draft replacement regulations will then be developed for further consultation expected to begin in July 2009", said Ms Davison.

This first external consultation phase closes on 13 February 2009.

The discussion paper is available for download on WorkCover's website www.workcover.com/regulationreview or call 13 18 55.

A young man who broke his back and lost an eye in a workplace injury, and a case manager who returned 74 injured workers to work in the past twelve months are two of the inspirational winners of WorkCoverSA's second annual Recovery and Return to Work Awards.

Click here for more information

Tuesday, 30 September 2008

WorkCoverSA’s third annual return to work and injury management conference will be held this Wednesday, 1 October, at the Hilton Adelaide.

Themed Moving forward - driving change: working together for best possible recovery, faster return to work, the conference will be a diverse gathering of scheme participants – injured workers, employers, claims managers, doctors and rehabilitation providers - working together to achieve a safe, early return to work and the community.

"The conference explores national and international innovative programs and best practice initiatives.

"It also give delegates the opportunity to collaborate – to bring together their varying fields of work and expertise to achieve better health and return to work outcomes for injured South Australian workers,” said WorkCoverSA’s CEO Julia Davison.

Two keynote speakers will provide an international perspective at the conference – Dr Benjamin Amick, the Scientific Director of the Institute for Work and Health, Canada, will build the case for evidence-based disability management policies and practices, while the Professor of Clinical Psychology at Keele University in Manchester - Professor Chris Main - will focus on the obstacles to return to work.

In addition to the two keynote speakers, concurrent sessions will focus on three streams – Scheme culture, in particular fostering a return to work culture; the importance of the workplace; and injury management.

Around 350 delegates will attend the one-day conference which will be hosted by Julian Burton OAM, founder of the JB Burns Trust, and sponsored by WorkCoverSA’s key business partners, Employers Mutual and Minter Ellison.

Media enquiries: Simone Williams, WorkCoverSA – (08) 8233 5733 or 0412 500 048

CORRECTION: WORKCOVER AND PRIVATE HOSPITALS

The following statement was made to the Leon Byner Program on 5AA radio on Monday, 22 September 2008.

During today's program you discussed a man who had been refused treatment at a private hospital following a work related injury.

As a general rule, private hospitals, like general practitioners, have the choice whether or not to take on WorkCover claimants. In an emergency, it would be reasonable to expect any hospital to administer appropriate treatment for a work-related injury.

In any event, Ashford hospital, like all private hospitals, is covered under the private hospital fee schedule and is therefore entitled to claim the cost of treating a patient with a work-related injury from WorkCover.

This means if a private hospital like Ashford, chooses to treat a patient with a work-related injury, they can be reimbursed from WorkCover.

In light of this information, it would be appreciated if you could clarify this issue with your listeners during tomorrow's program.

Thank you
Simone Williams
Manager, Communications - Corporate Communications.

LETTER TO THE EDITOR: PRIVATE HOSPITALS TREATING WORKERS

22 September 2008

The following letter was sent to the Adelaide Advertiser on 22 September 2008.

I respond to the article "Worker’s treatment appalling – inquiry on man who lost part of thumb”, The Advertiser, 20 September 2008.

As a general rule, private hospitals, like general practitioners, have the choice whether or not to take on WorkCover claimants. In an emergency, it would be reasonable to expect any hospital to administer appropriate treatment for a work-related injury.

In any event, Ashford hospital, like all private hospitals, is covered under the private hospital fee schedule and is therefore entitled to claim the cost of treating a patient with a work-related injury from WorkCover.

This means if a private hospital like Ashford, chooses to treat a patient with a work-related injury, they can be reimbursed from WorkCover.

Regards
Julia Davison
CEO, WorkCoverSA

Media Enquiries: Simone Williams, WorkCoverSA - (08) 8238 5733 or 0412 500 048

WorkCoverSA is presenting, to the South Australian community, the facts about the Government's changes to the Workers Rehabilitation and Compensation Scheme through a series of newspaper advertisements. The facts on various aspects of the Scheme are presented in the following adverts.

Letter to all South Australians from Bruce Carter,  Chair WorkCover Board
Facts - Weekly payments
Facts - Work capacity reviews
Facts - Return to work fund
Facts - Lump sums for non-economic loss
Facts - Provisional liability
Facts - Medical panels
Facts - Employer rewards for early reporting
Facts - Redemptions
Facts - Ombudsman, code of rights

Released 4 April 2008

RELEASE DATE 04/04/2008

The following statement was read out in the SA Parliament by the Minister for Industrial Relations, Michael Wright on Thursday, 4 April 2007 in response to this advertisement placed by the Australian Lawyers Alliance

I know there is some distress in the community about the changes proposed by the Government. I acknowledge there will be some reductions in benefits as a result of these reforms. But what has disappointed and frustrated me during the public debate on this issue, both in and outside of this House is the fearmongering and disinformation campaigns that have been run by some organisations. As an example of this is an advertisement that was published by the Australian Lawyers Alliance in yesterday's Advertiser.

An example of this is an advertisement that was published by the Australian Lawyers Alliance in the Advertiser on Wednesday 3 April.

They cited examples of four injured workers who would be affected by this legislation, Michael, Andrew, Sascha and John (not their real names) with various claims these workers would suffer under these reforms.

The ALA claimed Michael’s payments would cease immediately upon passage of this Bill. Despite being injured more than 2.5 years ago he would remain on 80% of his pre-injury earnings providing he was working to his maximum capacity. If he was not working to his maximum capacity, his entitlement to ongoing payments would cease. It is important to note that the nature and extent of rehabilitation provided would be considered when determining whether there is a capacity for work. The South Australian Workers Rehabilitation Scheme is not an ongoing pension scheme. Its objective is to provide short-term support and rehabilitation to injured workers while they recover and return to work, providing only longer-term support to those who are seriously injured and unable to return to work.

In regard to Andrew, who the ALA said would immediately lose his weekly payments and have reduced lump sums, under the new legislation he would be entitled to payments immediately under provisional liability enabling rehabilitation to commence immediately. He would then be entitled to 100% of his pre-injury earnings for the first 13 weeks, reduced to 90% at 13 weeks (based on the amendments I have proposed) and 80% at 26 weeks. If Andrew was seriously and permanently impaired he would have access to increased lump sum benefits which have almost doubled from $230,000 to $400,000 in the proposed legislation.

In regard to Sascha who the ALA said struggled to her claim accepted and will now have her payments stopped – under the new legislation she would be entitled to payments immediately under provisional liability enabling rehabilitation to commence immediately. If Sascha had no capacity for work after three years, she would be entitled to ongoing weekly payments at 80% of per pre-injury earnings. Similarly, if Sasha had capacity to work and was working to that capacity, she would be entitled to ongoing top up weekly payments at 80% of pre-injury earnings. However, if she had capacity and was not working to that capacity, she would no longer be entitled to ongoing payments. This is consistent with the objective of the Scheme to provide short-term support and rehabilitation to injured workers while they recover and return to work, providing only longer-term support to those who are seriously injured and unable to return to work.

In regard to John who the ALA said suffered many serious and permanent disabilities, on that basis that he would be entitled to increased lump sum benefits, which have doubled from $230,000 to $400,000 in the proposed legislation.

Now I don't know the details of each of those individual cases, but there really is some misinformation presented in those case studies and I am concerned that the fearmongering of a number of interest groups in connection with this Bill has caused undue distress to people currently on WorkCover.

RELEASE DATE 03/04/2008

WorkCoverSA’s unfunded liability has increased to $911 million after a loss of $67.9 million for the half-year to 31 December 2007. The Scheme is 63.4% funded.

This compares to an unfunded liability of $843 million at 30 June 2007, when the Scheme was 64.7% funded.

WorkCover’s claims liability continued to increase, as predicted, in the absence of significant or sustained improvement in return to work rates.

Investment returns were poorer than the previous corresponding period, following a decline in worldwide investment markets and this has contributed to the loss.

The average levy rate for 2008-09 will remain at 3.00%.

"The poor performance of this Scheme in returning injured workers to work has been ongoing for more than a decade, indeed in hindsight, from its inception. This is not a new or recent trend, but it is becoming increasingly unsustainable and urgent to fix," said WorkCover CEO, Julia Davison.

The South Australian Parliament is currently debating revised legislation for the WorkCover Scheme, proposed by the Government. WorkCover supports the Government’s proposals.

Media enquiries: Danielle Martin, WorkCoverSA – (08) 8233 2381 or 0418 295 324

RELEASE DATE 20/03/2008

Letter to the Editor

Much of the public commentary over the past few weeks ignores three critical facts in relation to the WorkCover Scheme:

1. Fewer injured workers successfully return to work on our Scheme than any other Scheme in Australia, often at a devastating cost to families.
2. Under the proposed reforms, the Scheme will remain the fairest, according to the workers compensation expert Alan Clayton, and the most generous overall.
3. The Scheme is unsustainable in its current form and must be fixed in a way that is fair to injured workers and affordable to business.

The legislative reform proposed by the Government has a clear focus on achieving better return to work outcomes – this is the key to fixing the Scheme through a combination of sound claims management and the right legislative tools.

In its entirety, the package will significantly improve the State’s return to work rates and gradually decrease the cost of the Scheme to employers.

Much has been said about diminishing injured workers’ entitlements. The fact remains that by accepting the proposed changes, South Australia would continue to have the fairest and overall most generous scheme in Australia.

Bruce Carter
Chair, WorkCover Board

Enquiries: Danielle Martin, WorkCoverSA – (08) 8233 2381 or 0418 295 324

RELEASE DATE 18/03/2008

The following statement was made to the Leon Byner Program on 5AA radio on Tuesday, 18 March 2008.

I write to you in regard to comments made by, or attributed to, the Hon Rob Lucas MLC on your program of 17 March 2008. It was stated that the "real blowout of the scheme's unfunded liability started when redemptions were stopped”. This statement is incorrect. These comments do not accurately reflect the evidence that was given at the Parliamentary inquiry last week, which can be confirmed by reference to Hansard.

The first point to understand is that redemptions have not been, and never were, stopped and this was the evidence given to the Parliamentary inquiry. The way in which redemptions are used and the claims to which they are applied is a matter of Board policy. It has never been the policy of this Board, or previous Boards, to cease redemptions. To assert that the liability started to increase when "redemptions were stopped” is incorrect.

In my evidence to the Parliamentary inquiry, I explained that the deterioration of the Scheme’s funding position was, in hindsight, becoming evident in the late 1990s. This fact was confirmed by workers compensation expert, Alan Clayton in his recent review of our Scheme. He noted that the warning signs were beginning to show despite the Scheme appearing to be operating in a healthy manner at the time. Refer to pages 8 and 9 of Alan Clayton’s report.

The key driver of the liability increase was that more people were staying on the Scheme for longer. People were not returning to work and redemptions became the most common way that people left the Scheme.

The actuary saw that redemptions were creating a lump sum culture and affecting behaviour, resulting in people staying on the Scheme for longer. It is worth noting the large quantity of expert advice about redemptions that exists in Australia and internationally that warns against overreliance on the use of redemptions.

At no time were redemptions stopped, as evidenced by the table overleaf.

I would appreciate if you could communicate these facts to your listeners. As mentioned, this evidence can be viewed in full in Hansard. My full statement to the Parliamentary inquiry will shortly be published on the WorkCover website, www.workcover.com.

Regards,
Bruce Carter
Chairman, WorkCover Board

Enquiries: Danielle Martin, WorkCoverSA – (08) 8233 2381 or 0418 295 324

TABLE 1: Redemptions paid by WorkCoverSA 1995/06 to 2007/08.

RELEASE DATE 28/02/2008

The WorkCover Board today confirmed its support for the package of legislative reform put forward by the Government, stating that as a whole, the package would provide the tools necessary to improve the State’s return to work rates, which would in turn result in a more affordable, sustainable Scheme that was in line with other comparable State schemes.

The Government today tabled amending legislation adopting the package of reforms to the WorkCover Scheme, recommended by independent experts, Alan Clayton and John Walsh. The changes are designed to improve the State’s return to work rates, eliminate the unfunded liability and enable a reduction in the average levy rate paid by employers who fund the Scheme.

"The Board made its recommendations to the Government in November 2006, the review team has considered these issues over almost a year now and representatives of injured workers and employers have been extensively consulted. We’re pleased the Government has decided to act to fix the Scheme", said WorkCover Chairman Bruce Carter.

"Failure to adopt this legislation would be a failure to address the Scheme’s inadequacies in returning injured workers to work, and would result in a further deterioration of the Scheme’s funding position.

"We think the package adequately balances the interests of both injured workers and the employers who fund the Scheme with its appropriate primary emphasis on return to work, while maintaining long-term support for the seriously injured.

"Importantly, it will bring the SA Scheme into line with other States, particularly those which have turned their schemes around and which are now enjoying better return to work rates and much improved funding positions.

"As noted by the independent expert review team, the package must be supported in its entirety to deliver better return to work outcomes, cost savings and Scheme liability reductions. The components of the package are interrelated and as such the whole is definitely greater than the sum of its parts. We hope the package attracts widespread support.

"We commend the independent review team, Alan Clayton and John Walsh, and the Government for developing a package that:

• retains the Scheme's fairness and generosity for injured workers and their families
• will greatly enhance the Scheme’s ability to support injured workers to return to work
• will achieve full funding of the Scheme within five to six years, thus eliminating the $843m unfunded liability
• will enable reductions in the average levy rate, which is currently the highest in the nation.

"This legislative reform package, combined with the claims management improvements that will come from Employers Mutual, our sole claims agent, will ensure the Scheme delivers on its social and economic objectives and is sustainable long-term."

Media contact: Danielle Martin, WorkCoverSA – (08) 8233 2381 or 0418 295 324

RELEASE DATE 31/01/2008

Research shows that returning to safe work after a workplace injury or illness can be the best therapy, a message which WorkCoverSA hopes to deliver to all South Australians through an innovative advertising and online awareness campaign.

The campaign, which starts today on television and online with real-life case studies, builds on key messages developed from the return to work campaign launched in 2005 involving the fictional 'Harry' crayon cartoon.

"The awareness campaign has been conceptualised with the aim of evolving the return to work message towards the importance of return to work as part of recovery. It provides clear, actionable steps for injured workers, employers, health providers, friends and families,” said WorkCoverSA’s CEO, Julia Davison.

"The campaign was developed in consultation with injured worker representatives and employer and employee stakeholder groups to ensure the messages were identifiable and relevant and would resonate with our intended audiences," said Ms Davison.

The three key objectives of the new campaign are:

• to emphasis the importance of return to work as part of the recovery
• to empower injured workers to actively contribute to their recovery and return to work
• continue to build awareness that everyone has a role to play in supporting injured workers' recovery.

"WorkCoverSA claim statistics indicate that when a worker is away from work for more than three months after an injury they have only a 50% chance of returning to work within the following three months. The longer the worker is away, the probability of returning to work decreases – until after two years there is only a 12% probability of returning to work in the following three months," said Ms Davison.

"The negative impacts can be felt in marriage and family breakdowns, social isolation, depression and psychological illness, to name just a few ill effects of delayed return to work.

"The old-fashioned advice of bed rest and staying at home until you're completely recovered often isn’t the best therapy and can even prolong injuries. Being at work and continuing to contribute meaningfully, even in a small way, can help an injured worker's sense of self-esteem, purpose and morale," said Ms Davison.

A total of $850,000 has been budgeted for the awareness campaign for 2007-08. It has been designed with a life span of up to three years.

“We think this is an essential investment in raising awareness of and creating behavior change towards the importance of returning to work as part of the recovery. We will continue to increase awareness and action through a number of initiatives such as our annual conference, awards and now through our new awareness campaign,” said Ms Davison.

Media contact: Lauren Kandelaars, WorkCoverSA – (08) 8238 5733 or 0408 827 676