SIRA releases its Treasury Managed Fund Review Report
22 April 2024
SIRA has released findings from its compliance audit and performance review of the Treasury Managed Fund (the TMF) government employers’ workers compensation claims. The robust review identifies areas of concern and suggested courses of action.
The in-depth review of the TMF was conducted as part of SIRA’s system performance monitoring activities.
The review assesses whether workers compensation activities within the TMF agencies are being conducted in accordance with the Workers Compensation legislation and best practice expectations. It also evaluates the interplay between TMF agencies, claims mangers and the NSW Self Insurance Corporation /icare in the administration of workers compensation claims.
The review is the largest of its kind undertaken by SIRA, including the review of 951 claim files across the TMF, interviews with representatives of stakeholders including unions, government employers, claims service providers and icare.
SIRA acting Chief Executive Dr Petrina Casey said the review developed into a deeper investigation with a regulatory focus.
“SIRA started the review in 2022 and quickly established that there was a need for a broader, deeper investigation to deliver a comprehensive review of the performance of the Treasury Managed Fund in relation to workers compensation claims.”
“Through the course of the review SIRA has used its powers to take regulatory action where a lack of compliance has been identified. This has resulted in liability decisions being made, ongoing monitoring, employer improvement notices and penalty notices,” said Dr Casey.
The report details 5 key areas of concern that SIRA has identified: structural complexity, financial performance, government employer compliance, return to work challenges and claims management practice.
SIRA acknowledges there are differences between government agencies in the degree to which these concerns apply, reflecting the unique challenges they face.
SIRA has addressed each of the concerns with a range of suggested courses of action that are targeted to lift the performance of all government employers and ensure that claims service providers comply with the Workers Compensation legislation to meet system objectives.
SIRA has consulted with government agencies to establish their support of the suggested courses of action.
“In preparing the report, SIRA has consulted with key stakeholders who are broadly supportive of the suggestions we are making. As a result, we have confidence that the government agencies appreciate their importance and will work to implement them,” said Dr Casey.
SIRA will continue to work with the appropriate stakeholders and agencies and monitor implementation of the suggested courses of action.