The Investment Approach

2013 Benefit System Performance Report

This is the first 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 and comment on the valuation of the forward liability and what can be learned from analysis of the change in liability
• Review overall performance of the welfare system and the effectiveness of the “investment portfolio”
• Identify areas for attention to assist in managing long-term benefit dependency
• Discuss material risks that could impact on successfully managing the forward liability and/or in meeting Better Public Service (BPS) or KPI targets.

The 2013 valuation is the first conducted after the welfare reform changes which commenced in the latter half of 2012 and gives the first results which include some impact from these changes.

Impacts from the reform changes that commenced in July 2013 will appear in the next valuation due as at June 2014.