Review Of The Fund’s Income Position For FY 2020 And FY 2021–2022
Policy Papers, July 24, 2020
Source details
- Canonical URL
- Review Of The Fund’s Income Position For FY 2020 And FY 2021–2022
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Bibliographic details
- Published: July 24, 2020
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513551135.007
Summary
- Reviews the Fund’s income position for FY 2020 and FY 2021–22.
- Updates the April 2019 projections and proposes decisions for the current year.
- Includes a proposed decision to set the margin for the rate of charge for financial years 2021 and 2022.
- Notes that projections of the Fund’s income are subject to larger than normal uncertainties related to the impact of the COVID-19 pandemic on key assumptions.
Key uncertainties and assumptions
- For FY 2020:
- Uncertainties relate mainly to the discount rate used to measure the Fund’s retirement plan obligations at April 30, 2020.
- Uncertainties also relate to the full year asset returns on the retirement plan and the Endowment Subaccount (EA), given recent volatility in financial markets.
- For FY 2021–22:
- A key additional uncertainty is the scale of new lending associated with the economic fallout from the COVID-19 pandemic.
Proposed decisions and scope
- Proposes decisions for the current year (FY 2020) and for setting the margin for the rate of charge for financial years 2021 and 2022.
- Updates prior projections (April 2019) to reflect pandemic-related uncertainties.
Publication and metadata
- Subject: Budget planning and preparation, Discount rates, Personal income, Reserves accumulation, SDR interest rate
- Keywords: income, lending, outlook factor, PP, SDR billion, SDR Department
- Pages: 57
- Volume: 2020
- Issue: 037
- Series: Policy Paper No. 2020/037
- DOI: https://doi.org/10.5089/9781513551135.007
- Stock No: PPEA2020037
- ISBN: 9781513551135
- ISSN: 2663-3493
- Publication date on landing page: July 24, 2020
Review Of The Fund’s Income Position For FY 2020 And FY 2021–2022
Content in this bundle
- Policy Paper