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Scheme protection

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The LGIS Scheme is entirely owned and controlled by you the participating members, offering a superior alternative to what is made available by the traditional insurance market. Providing you with stable costs of cover and eliminating the volatilities driven by cyclical hard or soft insurance market conditions across the globe. The LGIS Scheme provides pooled protection while leveraging economies of scale under four categories:

​​LGIS self-insured Scheme policy adjustments​

​LGIS Workcare (workers compensation)

Every year, after 30th June, we ask you to complete a workers compensation declaration for your actual wages paid for the previous fund year. This is because:

1. The rate applied and the contributions collected for the current fund year is based on the forecast estimated wages

2. This is then subsequently adjusted on your actual wages (remuneration) for that particular fund year.​

According to WorkCover, the term ‘remuneration’ includes:
  • wages
  • salaries
  • remuneration
  • commissions
  • bonuses
  • overtime
  • allowances and the like
  • directors’ fees
  • superannuation contributions (except those made by force of law)
  • Superannuation contributions made as part of the Superannuation Guarantee are not to be included in the calculation of ‘remuneration’. However, any other superannuation contribution made on behalf of the employee is classed as ‘remuneration’.
  • fringe benefits
  • all other benefits paid (whether paid in cash or non-cash benefits such as vehicles, equipment, mortgage payments, travel, school fees etc.) to or in relation to a worker (including working directors declared as such to WorkCover WA) or​ to contractors, before deduction of income tax.​​​​​
​3. The actual wage roll is then compared with the previous estimated wage roll.

4. If there is a difference between your estimates versus your actual wage roll, the unders and overs will either be a credit or debit to your previous fund year contributions. It is worth ensuring that your budget is reviewed and updated to reflect the potential development in your actual wages​​.

Property​​

Local governments own many building, plus various infrastructure type assets.  These constantly change over time, and for various reasons - such as new builds, acquisitions, sales, and loss by natural perils, for example the assets lost in the January 2016 Yarloop bush fires.

Due to the constant changes in the property assets of local governments, the LGIS Property Protection policy is adjusted annually.

When LGIS is notified of additions or deletions, an asset value adjustment movement record is maintained.  This is checked by you, the member, and an updated register is provided to LGIS during the annual renewal process.

Post-June, the updated records are analysed against the current register and any overs and unders may result in additional contributions invoiced, or credits returned to you.

For any assistance or further explanation please contact LGIS on (08) 9483 8888.​
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