8.1.2 Scheme administration component
What is a participating institution's administration funding component?
The Scheme administration component is the amount equal to the participating institution's share of the administration of the Scheme for a quarter. The Scheme must calculate the participating institution's share using the method prescribed in section 67 of the NRS Rules.
The Scheme administration component is calculated by adding together 2 amounts:
- The first amount is a percentage of 7.5% of the institution's gross liability amount for each redress payment they are liable for during the quarter. If more than 1 redress payment was made during the quarter, work out the percentage for each payment and add them together.
- The second amount is the institution's share of a $1,000 contribution, as a proportion of their gross liability amount against the total of gross liability amounts of all liable participating institutions for a redress payment. If more than 1 redress payment was made during the quarter, work out the proportion for each payment and add them together.
- Finally, add the first and second amount to find the institution's share of the Scheme administrative component for a redress payment.
Step | Action |
---|---|
1 |
Calculate per-quarter administrative charge To work out the administrative charge for each institution, apply the following formula to redress payments made in that quarter:
Round up to the nearest whole cent. The gross liability is calculated in step 3 or step 8 of the method statement (see 5.1.1). |
2 |
Calculate institution's share of $1,000-per-claim legal contribution To work out the institution's share of the $1,000 per claim 'legal contribution', apply the following formula to redress payments made in that quarter:
The gross liability is calculated in step 3 or step 8 of the method statement (see 5.1.1). Note: If the institution is the only liable participating institution for a redress payment, they will pay $1,000. |
3 |
Calculate the Scheme administrative component for a redress payment Per-quarter administrative charge + Institution's share of $1,000-per-claim legal contribution = Scheme administrative component for a redress payment |