18 Minutes of meeting 29 April 2021 Redacted.pdf

Minutes of a meeting of the Board of the Accident Compensation Corporation held at
the ACC Boardroom, Level 7, Justice Centre, 19 Aitken Street, Wellington, on Thursday,
29 April 2021 at 9.00 am.

Present
Dame Paula Rebstock
Chair

Mr James Miller
Deputy Chair

Dr Tracey Batten
Member

Mr John Brabazon
Member

Dr Helen Nott
Member

Ms Bella Takiari-Brame
Member

Mr Pat Bowler
Member

In attendance
Mr Pat Duignan
Member, Board Investment Committee
Item 2.2
Mr Scott Pickering
Chief Executive
Items 3.1 – 6.3
Mr Mike Tully
Chief Operating Officer
Items 3.1 onwards
Ms Sharon Champness
Chief Talent Officer
Items 4.3 – 7.1
Mr John Healy
Chief Financial Officer
Items 4.3 – 6.3
Ms Vanessa Oakley
Chief General Counsel
Item 2.2, items 4.3 onwards
Mr Peter Fletcher*
Chief Technology & Transformation Officer  Items 4.3 – 6.3
Ms Emma Powell
Chief Customer Officer
Items 4.3 – 7.3
Mr Herwig Raubal
Chief Risk and Actuarial Officer
Items 4.3 – 6.3
Ms Michelle Murray
Tumu Pae Ora
Items 4.3 – 6.3
Ms Gabrielle O’Connor
Head of Client Recovery
Item 4.3
9(2)(a)
Enterprise Advisor, Operations
Item 4.3
Treasury
Item 5
Treasury
Item 5
Treasury
Item 5
Treasury
Item 5
Safety Partner – Talent
Item 6.3
Manager, Partnered Recovery
Item 6.3
Head of Health, Safety and Wellbeing
Items 6.3 & 7.1
Senior Solicitor, Corporate
Item 7.2
Senior Solicitor, Litigation
Item 7.2
Head of Strategy Policy and Research
Items 7.1 – 7.3
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9(2)(a)
Acting Manager Corporate Secretariat
Items 1 – 2.2 and 4.3
onwards
Associate Company Secretary
Items 1 – 2.2 and 4.3
onwards

*joined via videoconference
The Board Chair opened the meeting. She thanked Dr Nott, the Board and Management for the
whakatau to welcome Dr Nott to her first in-person ACC Board meeting.
1  Procedural Business
1.1  Apologies
There were no apologies for this meeting.
1.2  Register of Conflicts of Interest
CONFIRMED: The Board reviewed the Register of Members’ Conflicts of Interest Arising and
confirmed that it was not aware of any other matters (including matters reported to, and decisions
made by, the Board at this Meeting) which would require disclosure.
2  Committee Updates
2.1  Governance and Remuneration Committee
RESOLVED: The ACC Board resolved to agree that the Investments Incentive Arrangement would
be referred to the Board Investments Committee’s May meeting.
2.2  Board Investment Committee Delegations
Messrs Miller and Duignan provided a brief background to the changes proposed to the Board.
The simplification of the Investment Guidelines and revision of the delegations had been
completed following the recommendations from the Investments Governance Review and had
been implemented into the draft Terms of Reference. Mr Bowler noted that the proposals
cascaded from the governing legislation. Mr Miller noted that Mr Dyer had confirmed that the
proposed delegations could be operationalised. The Board discussed:
•  The frequency of reviewing the Investment Delegations. Incremental changes to the
delegations would be marked up and come to the Investment Committee for approval but given
the amount of work involved, the full delegations framework may not be reviewed again in the
short-term.
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•  Matters which the Investment Committee does not delegate to Management such as the
Private Markets Committee (PMC) Terms of Reference. Mr Duignan explained the history
behind the PMC and that this is no longer delegated in the documentation.
The Board asked Ms Oakley if she wished to comment and she responded briefly in line with her
written advice.
The Board requested and resolved that the Ethical Investment Policy be a Board approved policy.
Mr Miller thanked Messrs Duignan and Bowler, and Ms Oakley for their work on this matter.
ACTION: Chief General Counsel to review all other Committees’ Terms of Reference to ensure
they are fit for purpose.
RESOLVED: The ACC Board resolved to:
(a)  Approve the revised terms of reference (ToR) and delegations from the Board to the Board
Investment Committee (BIC) (together called “BIC Delegations”) as presented in Appendix
A to this paper.
(b)  Note the Explanatory Advice from Pat Bowler, Board member at Appendix B.
(c)  Note the advice from Pat Duignan, consultant, at Appendix C.
(d)  Note the legal advice from the Chief General Counsel at Appendix D.
(e)  Note the advice from the Chief Investment Officer that the proposals can be operationalised.
3  Board Only Session
3.1  Chief Executive’s Report
•  Social Insurance and next steps with Board engagement
•  Board strategy day - input and timetable for discussions
•  Rehabilitation focus update
•  One Front Door initiative update
•  Client Payments milestone - retirement of legacy Pathway system
•  Provider analytics discussion
•  ICIP Cabinet Paper update

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4  Operational Reporting
4.3  Quarterly Performance Report & March Additional Information
The Board took the paper as read and noted that the Short-Term Rehabilitation update had
already been discussed with the Chief Executive. The Board raised a range of questions on
rehabilitation targets and costs per claim information in the papers. The discussion focused on:
•  Confirming that the focus on rehabilitation was sustainable to ensure there were no perverse
incentives which could impact outcomes for clients. Ms O’Connor explained that Management
was not deviating from the Next Generation Case Management (NGCM) model ACC had
invested in and that the Corporation’s focus on rehabilitation was sustainable. NGCM shifted
frontline focus to getting the best outcome for the client – staff did not see or report on
rehabilitation rates. The data showed exits from the Scheme in line with expected claim
outcomes.
•  Front-line performance and recruitment. A quarterly recruitment process had been instituted
with half of each tranche appointed in anticipation of attrition. It was still early days, but
Management had already started seeing benefits from this process as new employees were
entering the workforce with some level of experience and staff felt better supported.
•  Engagement with employers to get employees back to work after an injury, which occurred
throughout the employee’s rehabilitation progress. In response to questions on whether there
was more that could be done with employers to get injured people back to work, Management
advised they were actively developing further education for employers about return to work
options.
Mr Healy provided a brief update on key matters and reminded the Board that approval was
required for release to the Minister. He noted that the nine-month rehabilitation rate for the full year
was rated as amber and would be amended to green for the report to the Minister.
RESOLVED: The ACC Board resolved to:
(a)  Approve, subject to any final changes, the presentation of the third quarterly report 2020/21
to the Minister by 30 April 2021.
(b)  Approve the publication of the third quarterly report 2020/21 on ACC’s external website
following acceptance of the report by the Minister for ACC.
(c)  Note the additional information for March 2021.
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5  Discussion with Treasury
The Board and Management met with Treasury Officials for a working lunch and discussed
leadership continuity; the Health and Disability System Review; and ACC’s accountability
documents (including general discussion on strategy, execution and target setting in complexity
and uncertainty).
ACTION: Chief Financial Officer to bring back to the Board a work programme on the 2022-2025
Statement of Intent, including engagement with Treasury.
6  Board Papers
6.1  Accountability Documents 2021
Mr Healy introduced the paper, thanking the Board for their feedback on the draft Statement of
Intent (SOI). The Board’s discussion noted:
•  While there were no significant changes to the metrics in the Service Agreement ACC
could commit to developing and exploring new measures. These would not be included in
the proposed Agreement without due diligence to test the data.
•  The revised rehabilitation target proposals contained in the Service Agreement. These had
an impact on ICIP benefits which created some challenges. The Board requested these
targets not be included in the draft Agreement to be provided to the Minister, noting they
were subject to further Board review and discussion.
•  The impact of COVID uncertainty and embedding of transformation across ACC still had an
impact on ‘what good looked like’ for setting performance targets. It was important to set
targets which ACC could genuinely deliver.
•  Return on investment for injury prevention metrics would be described as having work
underway to reassess. The accountability documents would refer to ACC’s commitment to
recognise areas where it could investigate other measurements for longer term strategic
injury prevention.
RESOLVED: The ACC Board resolved to:
(a)  Approve the submission of the draft SOI 2021-2025 to the Minister for ACC in draft form for
review.
(b)  Approve the submission of the draft Service Agreement 2022-2025 (excluding rehabilitation
targets) to the Minister for ACC in draft form for review, noting that some aspects of the
document are still subject to Board review.
(c)  Approve the approach proposed for communication of rehabilitation targets.
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(d)  Note the key changes to forecast 2020/21 financial result since February 2021.
(e)  Note that the Board Chair, Ms Takiari-Brame, Dr Nott and Dr Batten would be involved in
any further reviews of the accountability documents ahead of the May Board meeting.
6.2  Budget Delegations Amendments
The paper was taken as read and the Board Chair confirmed that there were no further questions
from the Board.
RESOLVED: The ACC Board resolved to:
(a)  Approve the proposal for the ACC Board to consider the re-forecast of the current financial
year financial performance for approval twice each year in reference to the original Budget.
(b)  Note the Board will still be required to approve any actual overspend as part of year-end
processes.
(c)  Approve the amendments to the Corporate Delegations Schedules to reflect the two formal
re-forecasts per year.
6.3  Deep Dive – Security at ACC Offices
Ms Champness introduced the paper, noting that it focussed on one of ACC’s critical risks. The
Board’s discussion focussed on:
•  The Remote Claims Unit.
•  Whether there were any other sophisticated technology solutions that could be used, for
example data sharing with the Police. ACC had a good relationship with the NZ Police who
were very responsive to ACC call outs. ACC also had the ability to get information from the
Police as part of assessing whether a care indicator was required for a client.
•  The safety culture in ACC’s branches. When new staff joined, time and effort was spent on
ensuring those staff understood why the processes were in place. There was ongoing
training and trials for response teams in each office for all staff, and learnings were
captured via debriefs.
•  Collaboration across government on high-risk clients. ACC had asked that this continue to
be a high priority for discussion on the Government Health & Safety Lead agenda. This was
done well when ACC had a direct referral link to another agency through a client but was
difficult where this was not the case.
•  The protocol for lockdowns of locations following a threat. Shared premises all had
arrangements in place, but it would depend on the relationship with other agencies if the
threat was not in a shared office space.
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•  The safety of other members of the public who might be in the same space as a
threatening client. If it was safe the other public could evacuate into the office space with
staff, or through the front door which would be able to open but not close.
•  The review against adherence to the Protective Security Requirements (PSRs). ACC had
previously maintained adherence to these on a voluntary basis but as this was now
mandatory, a review was expected in the next two years. Changing technology and the
physical layout of offices continued to be the main priorities for Management.
•  The union view of security at ACC’s offices. The Public Service Association worked across
the public sector and saw ACC as doing the best in the sector. PSA representatives sat on
ACC’s organisational Health and Safety Committees and took part in annual reviews.
•  The protections in place for staff who were publicly named in anti-ACC online forums.
These were monitored on an ongoing basis, and if any criminal action took place ACC
would prosecute. ACC provided support to these staff, and in one case provided a personal
alarm for protection. ACC also worked with staff to remove their addresses online, such as
on the electoral roll.
The Board thanked Management for the paper. The Chair advised all persons present that they
should not hesitate to contact the Board direct and quickly if issues arose or the risk environment
changed.
RESOLVED: The ACC Board resolved to note the Office Security Deep Dive presentation.
7  Performance Reports
7.1  Health, Safety and Wellbeing Report
Ms Champness introduced the Report, explaining that the control effectiveness indicator in relation
to organisational threat incidents showed that all had been managed in line with process and that
the controls had worked in each situation.
The Governance and Remuneration Committee held the previous day had received a paper on the
management of stress incidents.
The Board discussed the benchmarking of the lost time injury frequency rate, which showed that
ACC was higher than the comparative sector although the days lost were lower. Ms Vautier
explained that this was made up of low severity injuries which only required one or two days off
work, and that Management was managing lost time injuries closely.
RESOLVED: The ACC Board resolved to:
(a)  Note progress toward becoming a leader in health, safety and wellbeing.
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(b)  Note there were no notifiable events in March 2021.
(c)  Note the health, safety and wellbeing performance indicators.
7.2  Litigation Report
Ms Oakley informed the Board that at the next meeting she intended to change the monthly report
to one on all material litigation and then regular updating. There was no objection.
RESOLVED: The ACC Board resolved to note the Litigation report
9(2)(h)
7.3  Monthly Policy Update
Ms Powell introduced the paper, explaining that ACC continued to work closely with MBIE and
other agencies on issues which could result in scheme expansion, including on some individual
cases which had been in the media. There was a robust and systematic process which had been
followed for clinical expertise to support policy decisions, which also involved external expertise.
Ms Champness also provided an update on the remuneration bargaining approach and progress
with the Public Service Association which had been discussed at the Governance and
Remuneration Committee the previous day. Bargaining with the PSA had progressed for
employees in lower bands and the approach was endorsed by Te Kawa Maataaho – Public
Service Commission. Discussions were still ongoing for the remuneration approach for employees
in higher pay bands, and the Committee had discussed the retention risk associated with this and
asked for ongoing monitoring of retention and recruitment impacts.
RESOLVED: The ACC Board resolved to:
(a)  Note that the Minister has asked officials for advice on:
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i.  Financial support for dependants of deceased claimants
ii.  Birthing injuries.
(b)  Note that MBIE briefed the Minister for ACC on the rationale for compensation settings
regarding dependants of a deceased claimant, in response to recent media attention about
the victims of the 15 March 2019 Christchurch mosque attacks.
(c)  Note the Minister has requested further advice about the opportunities and implications
around changing settings, to provide compensation to dependants in a broader range of
family structures and circumstances.
(d)  Note the Minister has also recently requested advice on whether the AC Act should be
amended to extend cover to women who suffer severe perineal tears, in response to media
reports about changes to ACC’s decision-making process for these claims as treatment
injury.
(e)  Note that providing advice on financial support for dependants of deceased claimants and
birthing injuries will be an MBIE-led process, but Management expects to work
collaboratively and jointly with MBIE on the advice.
8  Board Administration
8.1   Minutes of Meeting held on 25 March 2021
APPROVED: the ACC Board approved the minutes of the meeting held on 25 March 2021.
8.2   Schedule of Matters Arising
Ms Oakley explained that matter BRD.21.02.1.3 could now be closed, as there did not appear to
be any current risks for potential deemed directors. She advised this would however need to be an
ongoing consideration for relevant staff in the future. The Board agreed to close the matter but
asked Ms Oakley check on the status of an Investment team staff member acting as an observer
at Kiwibank Board meetings.
The Board requested that BRD.19.10.4.1 remain open, that it was not dealt with by the weekly
report and should be dealt with as an item at the next meeting.
RESOLVED: The ACC Board resolved to note the Schedule of Matters Arising.

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8.3   Confirmation of Decisions Made Out of Cycle
RESOLVED: The ACC Board resolved to:
(a)  Confirm that there was one matter decided out of cycle during the period of 19 March 2021
to 22 April 2021 regarding the ACC Budget and Forecast for the financial years 2021/22 to
2024/25.
(b)  Note there were no papers held over from previous meetings.
8.4   Annual Work Programme
RESOLVED: The ACC Board resolved to note the annual work programme.
9  General Business
There were no items of General Business.
Closure: The meeting closed at 4 pm.
Approved

Chair ………………………………………………………….
Date ………………………………

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