New Zealand Superannuation Fund Contribution Rate Model
Page updated 16 May 2013
Treasury model used to calculate the government's capital contribution to the New Zealand Superannuation (NZS) Fund.
This model in MS Excel workbook format calculates the contribution rate for pre-funding New Zealand Superannuation (NZS). The model was updated at the time of the release of the Budget Economic and Fiscal Update 2013 (BEFU).
Since the last release with the Half Year Economic and Fiscal Update 2012 (HYEFU) the model’s data inputs have been updated. Specifically, the model uses the latest five-year forecasts of the Fund’s earnings and tax payments and longer-term projections of nominal GDP and total net (after-tax) NZS expenditure. The expected long-run before-tax nominal annual rate of return assumption has also been changed. More detail on this can be found in the note Changes to the New Zealand Superannuation (NZS) Fund Model for the Budget Economic and Fiscal Update 2013 Version that can be accessed from this site.
This version of the model includes no capital contributions between the years 2010/11 and 2019/20. Government policy is to review the length of this non-contribution period as economic and fiscal conditions change. Any changes will be reflected at each update of the NZS Fund projections. There has been a change in the rationale applied in calculating the fiscal year in which capital contributions are projected to resume. This too is covered in more detail in the note Changes to the New Zealand Superannuation (NZS) Fund Model for the Budget Economic and Fiscal Update 2013 Version.
Largely for information purposes, the model now contains two additional worksheets:
- NZS Expense - History & Future This gives historical data, and the latest forecasts and projections, for aggregate NZS expenditure, both inclusive (gross) and exclusive (net) of tax, and average NZS recipient numbers over fiscal years. Expenditure data is given both in nominal dollar terms and as a percentage of nominal GDP.
- History of NZS Fund - This gives historical data on the NZS Fund since its inception in 2001/02 up to and including the latest historical fiscal year (year ended 30 June).
The projected gross NZS tracks in the NZS Expense – History & Future worksheet display a potential path, beyond the latest forecast horizon, of the aggregate NZS expenditure numbers shown in the Transfer payments and subsidies note to the Forecast Financial Statements. These are in gross of tax terms, which is how all expenses in the Financial Statements of the Government of New Zealand are recorded.
| Doc. Date | Title | Download |
|---|---|---|
| 16 May 2013 |
New Zealand Superannuation Fund Contribution Rate Model - BEFU 2013 Update | nzsf-model-v26.xls (308 KB) |
| 16 May 2013 |
Budget Economic and Fiscal Update (BEFU) 2013 New Zealand Superannuation (NZS) Fund Track - With or Without Holiday Provides tracks of the capital contributions and the size of the NZS Fund, for both the now eleven-year contribution holiday and a scenario where the automatic contributions were continued, over a 40-year horizon. |
nzsf-track-v10.xls (46 KB) |
| 16 May 2013 |
Changes to the New Zealand Superannuation (NZS) Fund Model for the Budget Economic and Fiscal Update 2013 Version Provides details about the new expected long-run before-tax nominal annual rate of return assumption for the NZS Fund and also on changes to the rationale for resuming capital contributions to the NZS Fund. |
nzsf-model-changes-may13.pdf (45 KB) |
| 22 May 2009 | New Zealand Superannuation (NZS) Fund Contribution Rate Model Modelling Guide Explains the line-by-line modelling used, and some of the mathematics behind the calculations in the model. There is also information on where other, related material on the NZS Fund can be sourced from the Treasury website. |
nzsf-model-guide-may09.pdf (45 KB) |
