SCHOOL TEACHERS

Hokitika Guardian, 14 October 1932, Page 3

SCHOOL TEACHERS

THE SUPERANNUATION FUND

ACTUARY’S REPORT ON POSITION

WELLINGTON, October 11

There was a total State liability of £5/59,202 to the Teachers’ Superannuation Fund at January 31, 1930, according to the Governiuent Actuary, Mr C. Gostelow, who submitted a report to the House to-day on'the actuarial position of the fund as at that d tc. The increase in the State’s liability, as compared with the previous initiation three years ngo } is shown ns £9ll, lb 4. This increase, says the actuary, is mainly due to accumulation t interest of that part of the Stated . ability which has not been provider for, and to the. number- of retire meats of comparatively young teachers a. ith long service being in excess 0 valuation assumptions. It is pointec ~t that if tihe fund is in deficiency ai

ne valuation the amount of the de ilciemy at the succeeding valuatio. w 11, all other things being equal, increase at compound interest, since in addition -to the shortage of capital t a fund is deprived of the interest wliic that capital would have earned during Che valuation period. "he number of pensioners on the fund as at January 31, 1930, was 1231, drawing pensions amounting to £218,T;9, exclusive of 300 pensions amounting to £8893 per annum granted! to vicious and children of deceased members. The number of contributors ■t that time was 9614, with salaries totalling £2.613,078 per annum, who paid contributions at the rate of £140,8!4 per annum. SHORTAGE OF SUBSIDIES. Compared with the annual subsidies reported as necessary in £iV previous actuarial report Government subsidies p 4d in'during the three years showed .1 . shortage! of £315,000 apart from tlie loss of iwterpst on this amount.

Dealing with outgoings the report states that the amount paid out for benefits during the three years exceeded 110 per cent oT the total of contribution income arid Government subs: lv, and was more than 85 per cent < f the combined income from contribut ors, interest and Government subsidy, as compared with 90 per cent and cO

-■-'r cent respectively at the previous v luation.

As was pointed out in the last valu-•-1 ion report, continues the actuary, Ue. high percentage's were somewhat di Curbing since the liabilities were eso itinlly of a deferred nature-and continently funds should be increasing pidly ( while the fnnd is young and l’ e membership is expanding. The general principle that no additional sprain should be imposed on the future by policy measures of the Govern, mentis enunciated by the .actuary, w'm suggests that, increases in retiring ages would meet the situation.