How are CNST contributions set?
CNST is a pay-as-you-go scheme. This means that money is collected from the members of the scheme each year to cover the estimated claims and costs paid during that year. By operating on this basis, no reserves need to be held to cover either the claims that have been reported, but not yet settled (the reported outstanding claims) or the claims that have been incurred but not reported (known as the “IBNR”). This has the fundamental benefit of keeping more money in patient care now, rather than in provisions for future costs. Each member’s CNST contribution is determined in the following way: · the NHSLA Board determines the total amount to be collected based on actuarial analysis of the estimated value of claim payments in the forthcoming year. The total amount to be collected in 2012/13 to cover claim payments and scheme expenses for CNST is £950m; · the total amount is then split between members according to their relative risk within the scheme to determine a basic contribution (fur
