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, WorkCover SA – (08) 8233 2381 or 0418 295 324