Treasury Managed Fund Review Report
In August 2022, SIRA commenced a compliance audit and performance review of the Treasury Managed Fund government employers’ workers compensation claims (the TMF).
In conducting this review SIRA is exercising its functions as outlined in section 22 of the Workplace Injury Management & Workers Compensation Act 1998 (1998 Act).
The review began with 2 clear objectives:
- To assess whether workers compensation activities within the TMF agencies were being conducted in accordance with the Workers Compensation legislation and best practice expectations.
- To evaluate the interplay between TMF agencies, claims managers and NSW Self Insurance Corporation (SiCorp)/Insurance and Care NSW (icare) in the administration of workers compensation claims.
This TMF review delivers an insight into the current situation and provides the foundation for improvement and change, identifying key issues and suggested courses of action to resolve them.
The full report is available to view or download via the link below.
Summary
The TMF review is the largest of its kind undertaken by SIRA and looked at 951 claim files, with psychological injury claims comprising 54 per cent of that sample.
In the course of the review SIRA interviewed representatives of stakeholders including unions, government employers, claims service providers (CSPs) and icare. The review also considered the 2022 SIRA commissioned Social Research Centre customer experience survey of over 300 people with lived experience of a workplace injury and reviewed all available claims data.
The TMF represented approximately eight per cent of workers covered by workers compensation insurance in NSW, and was responsible for 20 per cent of claims in the 2021/22 financial year.
The review confirmed that in the same period, active psychological injury claims in the TMF represent 48 per cent of all active psychological injury claims in the system.
Eight out of ten psychological injury claims are from preventable workplace behaviours like work stress, bullying and harassment, and other mental stress factors.
The review identified a significant lack of compliance with legislative requirements and conformance to SIRA’s Standards of practice in what are the basic obligations at the start of the claim, and in the provision of injury management planning, an essential in supporting injured workers in their return to work (RTW).
SIRA has identified five key areas of concern:
Proposed courses of action
SIRA has addressed each identified area of concern with a range of suggested courses of action that are targeted to lift the performance of all government employers and also ensure that claims service providers comply with the workers compensation legislation to meet system objectives.
The proposed actions below take an holistic approach and are designed to deliver improved customer experiences and outcomes.
1. Structural complexity
The structural complexity of the TMF results in lack of clarity and functional ownership in relation to obligations under workers compensation legislation and greater accountability is required to enable more effective regulation by SIRA.
Suggested courses of action - structural complexity |
---|
|
|
|
|
2. Financial performance
Rising costs in the TMF are driven by several factors including increasing claim numbers, high proportions of psychological injury claims and concurrent scheme entitlements.
Suggested courses of action - financial performance |
---|
|
|
|
3. Government employer compliance
Government employers are not meeting legislative obligations that directly impact the likelihood of positive outcomes for injured workers
Suggested courses of action - government employer compliance |
---|
|
4. Return to work challenges
Challenges in finding suitable work for injured workers are impacting return to work rates in the TMF and there are significant opportunities for improvement through a whole of government approach.
Suggested courses of action - return to work challenges |
---|
|
|
|
|
5. Claims management practices
Uplifts in claims management practice and systems are required to ensure TMF claims are managed fairly, effectively and efficiently.
Suggested courses of action - claims management practices |
---|
|
|
|
|
For more detail please see the full TMF review report.
Updated Terms of Reference for the review were published on SIRA’s website 6 October 2022, and outlined the objectives, scope and outcomes for the review.
More information
- Read the Treasury Management Fund Claims File Review (Appendix 1).
- Read the Treasury Managed Fund Audit Report Government Employer Compliance (Appendix 2).
- Read the Terms of Reference for the Treasury Managed Fund review.
- View the Workplace Injury Management & Workers Compensation Act 1998 (1998 Act).
Contact SIRA about the Treasury Managed Fund review at [email protected].