2½ For 1 Superannuation

Press, Volume CIII, Issue 30529, 26 August 1964, Page 3

2½ For 1 Superannuation

(Parliamentary Reporter) WELLINGTON, August 25. Figures tabled in Parliament today show that for each pound State Servants have paid into the Government Superannuation Fund, including interest, they can expect subsidies of some £2 10s, entitling them to about £3 10s after retirement. The actuarial examination

of the fund, presented in Parliament, is made five-yearly. The latest valuations, for March 31, 1959, show the value of assets provided by contributors at £76.6 million including future contributions.

The value of prospective liabilities at that date is put at £267.4 mililion. The difference—£l9o.B million—represents the subsidies required. This figure does not include payments necessary to extinguish the debt because of short payment of subsidies in the past. In 1959, £13.7 million worth of underpaid subsidies

had been met from the Accumulated Fund, consisting of contributions and interest. In recent years, the debt has been reduced by special transfer from the Consolidated Fund of £1 million a year. The Government Actuary (Mr V. Thompson) says the extent to which inflation has affected salaries has been the factor most affecting liabilities of the fund. State servants are entitled, on retirement, to pensions worth each year about twothirds of their annual average pay for their final five years of service.