Benchmark Contribution and Funding
A Benchmark Contribution represents the Industry Contribution that would be expected for an agency, given its size and risk profile. The Industry Benchmark rate is used to ensure that the performance of a icare tmf agency is in line with its industry peers, either within the private sector or within other public sector jurisdictions. In some cases it is necessary to rely on a component of an agency’s own experience in determining an appropriate benchmark rate.
Benchmark Funding is provided as an appropriation for some principal departments and grant agencies. The Benchmark Funding is generally equal to the agency’s deposit contribution. Self-funded icare tmf agencies pay their deposit contribution from their own funds.
The Benchmark Funding is calculated by actuaries using a combination of an agency’s claims experience combined with its industry benchmark rate. The proportion of funding depends on the size of the agency and the stability of their experience.