SUPERANNUATION.

Dominion, Volume 5, Issue 1512, 7 August 1912, Page 4

SUPERANNUATION.

POSITION OF THE FUNDS. PUBLIC SKKVICK. Tin , income during the year ended December :11, mil, amounted to ,£134,105 17s. Id., including .£2:1,0(10, annual subsidy from the Government. The amount eonlributod by mciubors of the fund d\iri>i|? tin; year was J:95,288 Is. 3d., the balance of tlie incouio being uiado up of interest, .£12,015 17s. 3d., and fines .£231 18s. Id. The total outgo for the year was .ITiCST? 10s. Id. This includes allowances to members and to widows and children ill' deceased inem)>ers, .KM,17:1 Bs. 7(1., as against .£3(i,QU!) 17s. 3d. for the previous vi'iir; contributions refunded, JI77U Us. Oil. ; compensation, .£3170 10s. .Id.; nnd ox-lieu-es, .i1',119 Ss. 7d. The total value of (lie fund at the end of tlie vear . was ■£3-11,735 17s. ikl., an increase, of 17s. !)d. on the total at the. close o f the year 1!HO. The number of contributors at the beginning of the year was 8371, and 1253 new contributors have ;.ince joined. The number of officers who erased to contribute during the year by reason of having left the service, retired on pension, or died, was -184, leaving a total ol' 9110 effective, members of the fund at the end of the year. There were 343 members in receipt of retiring allowances by reason of age or length of service, and 95 by reason oi' medical unfitness, or of injuries received whilst on duly. The number of widows and children on the fund was 75 and 59 respectively. In consequence of the large and increasing amount of money, which had remained uninvested and unproductive in the hands of the Public Trustee, it had been decided, before the present Government came into office, to allow the whole of the moneys belonging to tho fund to be. taken into the common fund of the Public Trust Office at a fixed rate of 4} per cent pet annum. This rate is lower than could be earned by investment on mortgage, but, on the other hand, the capital is guaranteed, and the money will bear interest as won' as it. is. received by the Public Trustee. v Actuarial Examination. Tho actuarial examination of the fund for the fij'st triennium, prescribed bj Section 48 of the Act, .was made last year, and the Actuary's report was laid' before Parliament during tho short sossior held early this year. The report state; that, "in addition to the annual subsidj of .ffiO.OOO now being paid, further subsidies of .£20,000, .£24,500, and .£29,000 will be fhc minimum likely, to be required for the years 1911, 1912, nnd 1913 respectively." The Actuary "recommends thai the most satisfactory course will be tc strike a fair average subsidy for the next three years, and make it JMS.OOO per annnum for the trienninm." This would mean an increase of on the proI sent contribution by the Slate. Legislation if necessary will be introduced dur< ing the present session!to increase the annual subsidy in accordance with the Actuary's report. TJie report points out that the subsidies must increase for some years, the future limit probably being between .-£BO,OOO and £90,000. The Actuary, it his report, says that "(he original datii supplied to mo contained approximately • not more than three-fourths of the con tvibutoTS who actually joined the seheim at the outset. I am not aware that anj one was to blame in the matter; the re suit was probably due to bringing classe. , of public servants into the scheme nol originally contemplated." If the origina data supplied were incorrect, it is to b< regretted, and I will have inquiries niad< to ascertain the facts. If the estimate! of the Actuary were "understated,". ai he says they were, then it is evidc-rii that any attempts to add further con cessions will produce their natural re suit—namely, the over-loading of tin fund. It is in my opinion essential thai these attempts in the future should b< firmly dealt with. ' "■•■' ■ ' ' • Teachers' Fund. The actuarial examination of thi: fund has been completed, with the result that tho Actuary reports that, in addi tionto the annual subsidy of -£7000 nou being paid, further subsidies of ,£7720 ■£10,090, and M'lfi'lt) will be the mini niiini 'likely to be required for the year: 1911, 1912, and 1913 respectively, anil hi recommends that the present subridv- bi increased by .£10,090 per annum for end year of the current triennium. The ne cessnry • provision will bo made to lncel i. this added responsibility. ~ Railways Fund. The., long Continuous Ministry whiel went out of office only a few month: ngo resisted any 'attempt to have an actuarial investigation of the- railway.' (superannuation fund. The • Government has 'no intention of de slroying .the benefits derivable by the railway employees through the operation of the Act which provides foi their superannuation. At the same time, it is wise that tho country should know when it enters upon these schemes what responsibilities they entail, and Parliament should make provision that the charges which must ultimately como upon the taxpayer should bo known, in order that the taxpayer of (ho day should shoulder his fair share of tho burden, and not leave ; the whole liability to posterity. With this end in view, the Government intends to have an actuarial examination of the Railway Superannuation Fund made, thus bringing j't into Hue in this respect with the Public Service and Teachers' Superannuation schemes.