The future fund was initially set up to help cover the unfunded liabilities associated with defined benefit super schemes that Federal pollies and public servants used to receive before the schemes were terminated for new members and replaced with accumulation funds.
Defined benefit means an entitlement based on a formula relating to pay before retirement and years of service.
Accumulation means an entitlement based on how much was contributed to the fund and it's performance.
Any shortfall of defined benefit payments for public servants would come out of general revenue.
The Federal Government has been able to access those funds since 2020 but the Government previously decided to wait until at least 2026-27 to draw the fund down.
The Future Fund also manages some other funds that were seeded by Government borrowing. $50 billion for medical research, disaster other areas and also the upcoming housing fund.
As an aside some say that rather than Australia having industry and private super funds the Future Fund should have managed a pension scheme for Australians.
The future fund was initially set up to help cover the unfunded...
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