SUPERANNUATION FUNDS.

Otago Daily Times, Issue 21773, 12 October 1932, Page 6

SUPERANNUATION FUNDS.

The general position of the three State superannuation funds has been brought somewhat forcibly before the public by the National Expenditure Commission. Since the Government is introducing legislative proposals for adjustments with a view to counteracting the progressive insolvency of the three funds indicated in the estimate that there is an actuarial deficiency of twenty-three millions, some of the details of the reports of the public service and teachers’ funds for the past year may be usefully presented. Of new

contributors to the public service scheme the number during the year was 317, representing an annual contribution of £fßss. The total number of contributors to the fund at the end of March last was 17,516, and the total amount of the annual contributions £241,966. During the year pensions to the value of £90,063 were granted, age or length of service being the qualification in 364 cases. The total income of the fund for the twelve months was £462,280, of which amount members’ ordinary contributions represented £190,585 —after allowing rebates to the extent of over £50,000 under the Finance Act of last year—and Government contributions £102,082, The total expenditure for the year was £491,000, an excess of nearly £30,000 over income, while the accumulated fund stood at £2,888,034. The Teachers’ Superannuation Fund had a contributors’ roll of 9964 at the end of March last, there being an increase of 55 during the year. Retiring and other allowances granted within the twelve months amounted to £39,659, . as compared with, £20,602 for the preceding year, this bringing the total in allowances to £270,840, as compared with £239,624 for the year ended with January, 1931. Members’ contributions amounted to £115,961, a rebate again being allowed for, as against £143,392 for the corresponding earlier period, and Government subsidy to £46,917, as against, £126,106. The total income for the year was £235,560, as compared with £342,603 for the preceding year, while the total expenditure was £289,542, as compared with £269,167. The net loss for the year is set down at £53,982, and the accumulated fund amounts to £1,218,168. The total Government subsidy since the inception of the fund in 1906'up to January last has been £997,607. The fact that the total outgo of each of these funds for the year exceeded the income—for the first time in each case —furnishes an indication, even to the non-actuarinl mind, of the drift that has set in and of the need for arresting it.