29 October 2020
Anthony Jordan
[FYI request #13746 email]
Tēnā koe Anthony
Your Official Information Act request, reference: GOV-006785
Thank you for your email of 10 September 2020, asking for the following information under the Official
Information Act 1982 (the Act):
1/ Wage/Salary Structure of an Employee to the Corporation up until their Twelfth Anniversary
of Employment
(Please do not disclose any personal information ie individual staff names)
2/ What payments/bonuses can be made or applied for to/by Staff that are not included in their
usual Weekly/Monthly/Regular income (excluding such extras such as mileage costs, clothing
costs, vehicle running costs and damage to personal property costs whilst employed)
3/ Bands per year since 2008 of extra Income/Bonuses paid to Employees that were not part of
Employee Salary
(Please exclude such extras such as mileage costs, clothing costs, vehicle running costs, damage
to personal property costs whilst employed)
4/ Please provide Internal Policy/Guidelines used to calculate such Extra Income/Bonuses
How ACC sets salaries
We have interpreted your request to be for how salary is set and reviewed each year for ACC staff.
ACC employees are hired on an annual salary which falls within a salary range or band for their position.
The pay band for each position is set by our job evaluation process. The salary range for each band is
85% to 120% of the applicable market rate, determined through Korn Ferry salary data. Pay ranges are
reviewed annually against the total New Zealand employment market, not just the public sector, and
reflect the great talent we have at ACC.
Each year we complete a performance development cycle. The pay increase an employee could receive
is based on their current position in the salary range and their performance rating. This year due to
COVID-19 ACC staff salaries were not increased as part of the annual performance review process.
Additionally, ACC’s CEO and board of directors agreed to take a 20% pay reduction for six months.
Employees who are seconded temporarily to a more senior role may be paid an additional duties
allowance. The policy for this is attached titled:
Recognising Alternate duties.
Bonuses at ACC
There are limited number of employees at ACC that qualify for receiving bonuses.
To remain competitive with private industry, a small group of investment professionals that manage
ACC Investment assets are eligible for an annual bonus payment.
GOV-006785
These bonus scheme rules are unique to ACC and contain proprietary information around our approach
to calculating bonuses. The approach is unique to ACC and is a point of difference to our employment
offering. We are withholding policies and guidelines on how we calculate bonuses as this information is
commercially sensitive. This decision is made under section 9(2)(i) of the Act. In doing so we have
considered the public interest and have determined it does not outweigh the need to withhold this
information.
Other payments not included in usual income
The total remuneration for each member of the Executive and a small number of Senior Managers
includes an at-risk portion, representing remuneration held back and payable subject to achievement of
specified performance criteria. This at-risk component is managed under ACC’s Short Term Incentive
Framework. ACC’s guidelines for this are attached titled:
STI_framework 2020-21.
ACC practice allows one-off payments in limited circumstances, subject to a business case approved by a
relevant member of the Executive. Such payments are rare but may occur, for example, where a salaried
employee is recognised for significant additional hours during a project.
Further information about income is publicly available You are able to find more information regarding bonus, incentive and recognition payments on page 105
of Accident Compensation Corporation, Standard Annual Review Questions, 2018/19, available on the
New Zealand Parliament website through this link
: https://www.parliament.nz/en/pb/sc/submissions-
and-advice/document/52SCEW_EVI_91445_EW7425/accident-compensation-corporation-responses-to-
written. This includes banded information on these types of payments made to staff. As this information
is publicly available, we are refusing to provide it under section 18(d) of the Act.
Who to contact
If you have any questions, you can email me at
[email address]. If you are not happy with this response, you have the right to make a complaint to the Ombudsman.
Information about how to do this is available at
www.ombudsman.parliament.nz or by phoning 0800
802 602.
Nāku iti noa, nā
Sasha Wood
Manager Official Information Act Services
Government Engagement & Support
Enclosed
•
Recognising Alternate duties
•
STI_framework 2020-21
Accident Compensation Corporation
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