The Investment Approach

2014 Benefit System Performance Report

This is the second internal actuarial report produced in relation to the forward liabilities of the welfare system. The purpose of the report is for the Chief Actuary to independently:

• review experience over the year in terms of exit rates, numbers of new clients and clients transitioning between benefits
• review overall performance of the welfare system and the effectiveness of investments made to reduce benefit dependency
• review and comments on the valuation of the forward liability
• identify areas for attention to assist in managing long-term benefit dependency.

Some of the analysis in this report relies on the liability calculations performed by Taylor Fry Consulting Actuaries and detailed in their report titled “Actuarial valuation of the Benefit System for Working-age adults as at 30 June 2014” which was publicly released in February 2015.  As a result  the key findings set out below should be read alongside the most recent Welfare System Valuation Key Findings as they are related. This can be found at:

msd.govt.nz/about-msd-and-our-work/newsroom/media-releases/2015/reforms-succeed.html