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New Zealand Superannuation Fund Contribution Rate Model

Page updated 23 Aug 2017

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 Pre-election Economic and Fiscal Update 2017 (PREFU).

Since the last release with the Budget Economic and Fiscal Update 2017 (BEFU) 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, the nominal Government 10-year bond rate and total net (after-tax) NZS expenditure. 

This version of the model includes no capital contributions between the years 2010/11 and 2019/20 (inclusive). Capital contributions are forecast to commence again in 2020/21. 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.

Tables in the PREFU publication show what capital contributions would have been, had they resumed in 2017/18, under two different scenarios. One scenario is the recently announced policy of the Government to increase the age of eligibility for NZS to 67 years, over a four-year period commencing in 2037/38, and the alternative scenario is retaining the age of eligibility at its current level of 65 years.

PREFU 2017 forecasts and projections, produced by this model, incorporate NZS Fund capital contributions based upon the policy to increase the age of eligibility for NZS to 67 years, with contributions resuming in 2020/21.

Largely for information purposes, the model 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.

The MS Excel workbook New Zealand Superannuation Fund Contribution Rate Model is a special purpose document and cannot be supplied in HTML format. The modelling guide in Adobe PDF format can be supplied in HTML format if requested from Information Services. Using MS Excel Files Using PDF Files
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