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Accident Compensation Act 2001

Management of the Scheme - Financial management

166B: Funding policy statement

You could also call this:

"The Minister must write a plan about money for accident insurance"

The Minister must create a funding policy statement within 12 months of this section starting. This statement needs to include several important things:

  1. A target level or range for funding each Account.
  2. A plan for dealing with situations when the funding isn't at the target level or range.
  3. Any limits on how much the annual levy can change for the Accounts.
  4. When levy changes might not be needed.

The funding policy statement has to follow the financial responsibility principles in section 166A. It needs to explain how it follows these principles.

The statement can tell the Corporation to do specific things, as long as these fit with the Corporation's job as described in section 262.

Some parts of the Crown Entities Act 2004 (sections 113 and 114) don't apply to this funding policy statement.

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166A: Principles of financial responsibility in relation to Accounts, or

"Rules for keeping ACC's money fair and steady"

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166C: Consultation, publication, and amendment of funding policy statement, or

"Rules for making and changing the government's money plan"

Part 6Management of the Scheme
Financial management

166BFunding policy statement

  1. Within 12 months after the commencement of this section, the Minister must issue a funding policy statement.

  2. The funding policy statement must specify—

  3. a target level or band for the funding of each Account; and
    1. an approach to managing deviations from the target level or band for the funding of each Account over a period of time; and
      1. limits (if any) on any annual levy changes for all or any of the Accounts; and
        1. the circumstances (if any) in which levy changes are not required.

          1. The funding policy statement must be consistent with, and explain how it is consistent with, the financial responsibility principles in section 166A.

          2. The funding policy statement may prescribe specific actions for the Corporation to take to the extent that any such action is consistent with the Corporation’s functions under section 262.

          3. Sections 113 and 114 of the Crown Entities Act 2004 do not apply in respect of a funding policy statement.

          Notes
          • Section 166B: inserted, on , by section 5 of the Accident Compensation (Financial Responsibility and Transparency) Amendment Act 2015 (2015 No 85).