This proposal would invest $1.6 billion in a new fund managed by the Future Fund Board of Guardians mandating a target rate of return equivalent to the consumer price index (CPI) plus 2.0 to 3.0 per cent per year, net of investment fees. The principal and net earnings would be drawn down to fund future National Disability Insurance Scheme expenses in the event that these exceeded the level budgeted for. Unspent earnings would be reinvested into the fund.

The proposal would have effect from 1 July 2019.