Future Fund Target Asset Level

The Target Asset Level represents the best estimate of the Future Fund balance that would be required to offset the present value of projected unfunded superannuation liabilities.

The Future Fund Act 2006 provides that a comparison of the Fund's balance with the Target Asset Level is required when making decisions on withdrawals from the Fund to meet Australian Government benefit payments prior to 2020 or additional contributions into the Fund.

Where the balance of the Fund at the start of a financial year is greater than or equal to the Target Asset Level for the same financial year, withdrawals can be made from the Fund to meet Australian Government benefits prior to 1 July 2020.  From 1 July 2020, withdrawals from the Fund to meet benefit payment costs do not need to take account of the Target Asset Level.

In relation to additional contributions into the Fund, these can be made as long as they do not result in the balance of the Fund exceeding the Target Asset Level for the relevant financial year.

The Target Asset Level for the Future Fund is set by the Designated Actuary. The Designated Actuary Determination 2016 names Mr Richard Stuart Boyfield, Fellow of the Institute of Actuaries of Australia, partner at Mercer Consulting (Australia), as the current Designated Actuary.

The Designated Actuary must take all reasonable steps to ensure that there is a target asset level in place for a financial year and that not more than five target asset levels for different financial years are in place at the same time.

The Designated Actuary's latest Target Asset Level Declaration of 14 September 2016 specifies and explains the target asset levels for the Future Fund for the 2016-17 to 2019-20 financial years.

Designated Actuary Determination

Target Asset Level Determination

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Contact information on this page: Funds and Actuarial Branch

Last updated: 17 October 2016