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How the Accident Compensation Corporation (ACC) pays claims

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Title has changed:How theAccident Compensation Corporation (ACC) paysclaims

How compensation is paid

The ERC is paid at 80% of the employee’s assessed salary.

If the accident was work related, the compensation is paid into the board’s bank account.

If the accident was non-work related:

  • the compensation is paid to the board for any employee at a school with sick leave available
  • for employees with no sick leave available:
    • Non-teaching staff are paid the compensation directly and are placed on ACC leave without pay
    • Principals’ and teachers’, compensation is paid to the Board who continue to pay them as per their collective agreement.

Make sure your administrative processes for ERC are the same for all board employees on ACC, whether they are paid through teachers’ salaries or operational funding.

The process

Stage

Description

1   

If the accident is work related, the employee continues on full pay and no sick leave is deducted.

If the accident is non-work related, the employee continues on full pay with one day’s sick leave for each week of absence debited from their sick leave entitlement.

 Ifthen
 the employee’s pay is charged to teachers’ salariesthe full 100% continues to be funded by the Crown and charged as one full-time teacher equivalent (FTTE) usage for banking staffing purposes, in the same way as they had been before the absence.
  the employee’s pay is charged to operational fundingthe board continues to fully fund the employee’s salary, in the same way as they had been before the absence.
2ACC pays the ERC to the Novopay pay centre.
3The Novopay pay centre forwards the ERC to the board’s bank account.

Using funds from ACC

The ERC paid into the board’s bank account may be used however the board wishes. Usually it is used to fund cover for the injured employee.

The funding is usually enough to meet relief teacher expenses. If it is not, the board must pay the difference themselves. The Ministry doesn’t provide top-ups for ACC payments.


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