New South Wales Consolidated Acts

MOTOR ACCIDENTS (LIFETIME CARE AND SUPPORT) ACT 2006 - SECT 49

49 Determination by Authority of amount to be contributed to Fund

(1) The Authority is to determine, before the beginning of each relevant period, the amount required to be contributed to the Fund:

(a) to fully fund the present and likely future liabilities of the Authority under Part 2 (Care and support for Scheme participants) in respect of persons who become participants in the Scheme in respect of motor accident injuries suffered during that period, and

(b) to meet the payments required to be made from the Fund (other than payments under Part 2) during that period, and

(c) to make provision for such other matters as the Authority should, in all the circumstances, prudently make provision for in connection with liabilities under Part 2.

(2) The amount required to fully fund a liability of the Authority under Part 2 is an amount that is sufficient to provide a sum of money that together with anticipated investment income is equal to the best estimate of the cost of meeting the liability (in inflated dollars) as and when the liability falls due.

(3) The Authority’s determination in respect of a relevant period is to be made in accordance with the report of an independent actuary engaged by the Authority on the recommendation of the Board to report to the Authority on the amount required to be contributed to the Fund as referred to in subsection (1).

(4) A "relevant period" is a financial year or such other period as the Authority determines from time to time to be a relevant period for the purposes of this section. Relevant periods can be determined so as to overlap but there must be no gap between successive relevant periods and each relevant period must not be longer than 12 months.

(5) The amount determined by the Authority under this section for a relevant period is the "required Fund contribution" for that period.