Lifetime Care and Support (Catastrophic Injuries) Act 2014

Before the beginning of each contribution period relating to motor accident injuries, the LTCS commissioner must determine, in writing, the amount needed to be contributed to the LTCS fund in the contribution period (the required fund contribution for motor accident injuries)—

to fully fund the present and likely future liabilities of the LTCS commissioner under part 6 (Payments under LTCS scheme) in relation to people who become participants in the scheme because of motor accident injuries suffered during the contribution period (other than people in relation to whom section 83A applies); and

to meet the payments needed to be made from the fund (other than payments under part 6) during the contribution period; and

to provide for any other matters the LTCS commissioner should, in all the circumstances, prudently make provision for in relation to liabilities under part 6.

Before the beginning of each contribution period relating to work injuries, the LTCS commissioner must determine, in writing, the amount needed to be contributed to the LTCS fund in the contribution period (the required fund contribution for work injuries)—

to fully fund the present and likely future liabilities of the LTCS commissioner under part 6 (Payments under LTCS scheme) in relation to people who become participants in the scheme because of work injuries suffered during the contribution period; and

to meet the payments needed to be made from the fund (other than payments under part 6) during the contribution period; and

to provide for any other matters the LTCS commissioner should, in all the circumstances, prudently make provision for in relation to liabilities under part 6.

Note Power to make the determination includes power to make different provision in relation to different matters or different classes of matters, and to make a determination that applies differently by reference to stated exceptions or factors (see Legislation Act, s 48).

The amount needed to fully fund the present and likely future liability of the LTCS commissioner under part 6 is an amount sufficient to provide an amount of money that together with anticipated investment income is equal to the best estimate of the cost of meeting the liability (in inflated dollars) when the liability becomes payable.

The LTCS commissioner’s determination of the required fund contribution for motor accident injuries or work injuries for a contribution period must be made in accordance with the report of an independent actuary.