The Investment Approach
2016 Benefit System Performance Report
This report highlights key dynamics of the benefit system and how they impact long-term benefit dependency. It is the fourth internal actuarial report produced in relation to the forward liability of the benefit system. The purpose of the report is for the Chief Actuary to independently:
- Review experience over the year 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 comment on the valuation of the forward liability
- Identify areas for attention to assist in managing long-term benefit dependency
Unless stated otherwise, it covers the period from 1 July 2015 to 31 December 2016. Previous reports have only covered the year to the previous 30 June. We have extended this to 31 December for this report to ensure information is more up-to-date.
Some of the analysis in this report relies on the liability calculations performed by Taylor Fry Consulting Actuaries and detailed in their report titled Valuation of the Benefit System for Working-age Adults as at 30 June 2016[1] (the 2016 Valuation Report) which was publicly released in May 2017.
Liability is a measure of future expected benefit cost and as such is a proxy for long-term benefit dependency.
The report does not explicitly cover social housing though makes comment on social housing aspects where relevant to benefit system clients. Social housing may be incorporated more broadly in the future, either as part of this report or separate reporting.
