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Circular No 18
General PHIAC Circulars
Circular No 18
Contact Officers:
Gayle Ginnane (02) 6285 3132
Dru Dietz (02) 6285 3131
5 October 1990
REINSURANCE - COMMONWEALTH SUBSIDY
This section of this circular has been withdrawn as the information is no longer relevant.
PAYMENTS TO THE REINSURANCE TRUST FUND
A number of organisations that are regularly required to make a contribution to the HBRTF have indicated that they experienced difficulty in forwarding their payment because investment funds were committed in term deposits with a maturity date which fell after the due date for payment. Assessed payments to the HBRTF must be forwarded in sufficient time to reach Council by the nominated due date as payments from the Trust Fund for that quarter cannot be finalised until all payments are received.
The difficulty of predicting the amount likely to be payable to the HBRTF for future quarters is appreciated but allowance must be made for the potential liability when investment planning is undertaken. Estimates should take account of amounts paid for recent quarters, movements in benefit levels since the last settlement, seasonal fluctuations in claiming patterns and adequate allowance for unforeseen fluctuations in the benefits pool for the State.
PHIAC has now passed the establishment phase of its operations and it is expected that it should be possible to finalise reinsurance account calculations around the first day of December, March, June and September each year. Organisations that expect to make payments to the HBRTF should ensure that adequate funds are available from that date forward. It may be necessary to arrange for term investments to mature around those dates then place funds on a daily basis until the actual figures are available.