SUPERANUATION FUND

Otago Witness, Issue 3574, 12 September 1922, Page 47

SUPERANUATION FUND

INCREASED SUBSIDY REQUIRED. WELLINGTON. September 8. -The annual report of the Public Service Superannuation Board, which was laid on tliF» table of the House of Representatives to-day, shows that at the end of the year 1921 15. public servants, of whom 2583 were females, were contributing to the fund, their total annual salaries being £A240.824 and their total contribution Of that number those who joined lhe fund during the year numbered 1637 (386 females), with a total annual salary of £258.827. and annual contributions amounting to £14.828. Returns and other allowances and -pensions for £25.952 per annum were granted during the year. Those officers who retired during the year, and who possessed compensation rights under the Civil Service Act, 1866. would have been entitled to receive th e sunt of £20.956 7s 6d (the amount of compensation accrued to the date when thov joined the Superannuation Fund) had they not become participants in thf» benefits of tlie fund. ilie total amount of such compensation, for which the fund became liable, since the initiation of the scheme, is £422.297 16s Id. To this amount must be added accretions to the date of retirement (approximately £100X00). for which the Consolidated Fund would otherwise have been liable, and the whole may be fairly set against the total subsidies paid to the fund, amounting to £674.500. It will thus be seen that the average net annual Government contribution to the fund, spread over the 14 years of its existence, is approximately £10.871. Fiftyfive retiring allowances were discontinued at death. The annual amount payable at the close of the year was £163.354 18s lid. The total income for the year was made up as follows: — Members* ordinary contributions, £249.626: transferred from other funds, £352: contributions from the Government. £86.000: fines, etc.. £421: interest. £85.312; total income for the vear, £421,711. The pensions paid during the year to contributors who have retired and to dependants of deceased conti ibutors. amounted to £150.593 18s Id (£136,758 8> lOd to in embers and £13.836 9s 3d to widows and children). Th e refunds of contributions to contributors who have left the service amounted to £41.746 Is 4d. while refunds under section 42 to personal representatives of deceased contributors amounted to £5218 17s sd. The salaries of the staff (excluding that of the secretary. wV.eh was paid out of the Consolidated Fund), and other office expenses were £1979 2s 9d and £245 6s 8d respectively. The Public Trustee's commission on interest collected amounted to £2132 16s 3d, and medical fees for reports amounted to £9l 7s. f l he total outgo for the year was £207.779 7s. The accumulated funds amounted at the end of the year to £1.716.837 3s lid, an increase of £213,931 7s 5d as compared with the previous year. On December 31 the total assets of the fund, which include provisions for the outstanding accounts, amounted to £1,731.099 Is 6d. The whole cf the investments during the year were in mortgage securities at current rates of interest. The sum of £189.522 was invested in inscribed stock and debenture securities, and £1.459,945 in mortgage securities. The rate of interest earned on the mean funds was £5 6s per cent., as against £5 3s Id for the previous year. The report states that the comparatively large number of recent retirements of contributors under the age of 65 years has thrown on the fund a heavy immediate financial burden, which normally would have been postponed for many years, and an increased Government subsidy will he required for the current triennium. In accordance with the actuary's report on his examination of th e fund, the board will, if necessary, make representations to the Government to secure payment of the additional amount that is required to preserve the solvency of the fund.