SUPERANNUATION.

Star (Christchurch), Issue 12755, 26 September 1919, Page 3

SUPERANNUATION.

THE STATE’S RESPONSIBILITY. Interesting references to the PnbHo Service, Railways, and Teachers’ superannuation funds were made in tha Budget, which stated:— The total number of contributors to the Public Service Fund on December 31 last was 14,071, an increase of 237; during the year. The total revenue for the year was £254,860, including members’ contributions. £150,899; interest, £55,704; Government subsidy, £48,000. The total amount expended during tho year was £141,758, which comprised retiring and other allow-; ances, £102,901); refunds of contributions, £39,316 f cost of administration, £2542. The total number of allowances existing at the end of the year was 1584. representing an aggregate annual payment of £110,171. Tha amount of tho total fund invested on? December 31 last was £1,125,706. TEACHER’S SUPERANNUATION FUND. The fund amounted on December 31:* 1918, (o £458,056, as compared with £430,325 on December 31, 1917. Doring the year 1918 allowances totalling £1571 were granted, the total annual rate at tho end of the year £51,049. The Teachers' SnperannuaS, tion Board, with the approval of the' Government, concluded very satisfactory arrangements with the Public Trustee for the investment of the fund* On December 31, 1918, the amount invested totalled £446,421; of this sura £59,600 was invested at 4* per cant, £26,161 at 5 per cent, £38,460 at 5$ per cent, and £322,200 at 5’ per cent. The amount held by the Public Trustee uninvested was £2003. RAILWAYS SUPERANNUATION FUND. In my last Budget, presented on August 6, 1914, the committee was informed that as a result an investigation the Actuary reported it was necessary to provide an additional £25,000 per annum for the next three years to make the Railways Superannuation Fund sound, and that at the expiration of three years a further investigation should be made. In accordance with the recommendation of the Actuary, au extra £25,000, making in all £50,000, was provided on -be 1 estimates for tho year 1914-15, and this sum was duly paid. Shortly after taking over the duty of Finance Minister on September 1 lass the General Manager of Railways veported that tho accumulated funds had declined from £377,585 in 1917 to £363.801 at March 31, 1919, a decrease °f £14,000 in two years; and that during the same period the liability of the fund to tlie contributors bad increased by £64,800 in respect of cash contributed. He further stated that “rb was imperatively necessary that steps be at once taken to stabilise the Railway Fund without further delay,” and he strongly recommended “the"sum of £150,000 be paid to the credit of tha fund t.'iis year, and. that future payments by way of subsidy should be £50,000 par annum.” The General Manager's communication was at once referred to the Actuary, who Iras reported that it will take some time to collect the necessary data and maka the valuation, and lie recommends an immediate increase in the subsidy of £50,000, making an annual contribution of £7-5.000 instead of £2-5,000, and that the matter be reviewed and adjusted when the result of the actuarial investigation is available. The sufficiency of the fund is guaranteed by the State, but in order to remove any possible feeling amongst the railway employees as to_the stahDrty of the Superannuation Fund, and to assure them of the readiness of the Government, to keep it sound, the extra £50,000 will be provided on this year's estimates, and instructions will be issued for an actuarial investigation as early as possible.

PUBLIC SERVICE ANI> TEACHERS’ SUPER ANKUATIOX FUNDS. Tlie annual contributions to the Public Service Superannuation Fund in accordance with the Actuary’s report of May 25, 1918, for the triennial period ended December 31, 1916, was increased from £48,000 to £86,000 under the authority of section 26 of the _ Appropriation Act, 1918. By section 25 of the same Act the subsidy to the Teachers’ Superannuation Fund was increased from £17.000 to £43,000 in accord with' ; the Actuary’s report of September 22, 1917, for the triennial period ended December 31, 191 d. . It was clear from the reports that the Actuary intended the increased subsidy should he made for the years 1917, I f l8 V a ? J " re H as 1919. The amount . short-paid for the two years is 6,000 for the Public Service annuation, and £52,000 for the Teach-' era or a total of £128,000. I am nuiking further inquiry with regard to this, shortage, and, if found necessary, will provision by appropriation betOTa the snsxini)