PUBLIC SERVICE SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1916.

Appendix to the Journals of the House of Representatives, 1918 Session I-II, H-26a

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Session 11. 1918. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1916.

Laid before Parliament in pursuance of Section 48 (4) of the Public Service Classification and Superannuation Act, 1908.

EEPOET BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR-GENERAL TO MAKE THE ACTUARIAL EXAMINATION OF THE PUBLIC SERVICE SUPERANNUATION FUND FOR THE TRIENNIAL PERIOD ENDED 31st DECEMBER, 1916. 1. I have the honour to submit the following report on the Public Service Superannuation Fund as at the 31st December, 1916, as required by section 48 of the Public Service Classification and Superannuation Act, 1908. 2. The scheme, which came into operation on the Ist January, 1908, embraces, with the few exceptions set out in section 52, all permanent public servants outside the Government Railways Superannuation Fund and the Teachers' Superannuation Fund. 3. The contributions and benefits provided by the Act, together with statements showing the progress of active membership, discontinuance of membership from various causes, and the progress of pensions for each year, will be found in Tables ItoIV of the appendix to this report. The ages of the contributors at the date of the valuation, together with their contributions and other particulars, are shown in Table V, and the pensions granted during the triennium, with the ages at which they were granted, in Table VI. 4. The number of pensioners on the fund at 31st December, 1916, was 1,233, drawing pensions amounting to £88,392 per annum; the number of contributors at the same date was 13,313, with aggregate salaries amounting to £2,287,591 and paying contributions at the rate of £141,844 per annum. 5. The income and outgo of the fund during the three years are shown in the Consolidated Revenue Account, which is as follows :— Consolidated Revenue Account of the Public Service Superannuation Fund prom the Ist January, 1914, to the 31st December, 1916. Income. £ s. d. Outgo. £ 8 . d. Funds at Ist January, 1914 '.. 537,914 6 3 Pensions to members .. .. 207,741 1 7 Members'contributions .. 401,981 15 10 Pensions to widows and children.. 18,684 9 7 Government subsidy.. .. 144,000 0 0 Contributions returned.. .. 54,144 11 2 Transfers from other funds .. 1,641 610 Compensation .. .. 2,211 18 8 Interest .. .. .. 98,478 12 0 Transfers to other funds .. 856 3 0 Fines .. .. .. 545 7 9 Salaries .. .. .. 2,349 19 6 Public Trust Office commission .. 1,057 17 1 Travelling and office expenses .. 947 7 10 Funds at 31st December, 1916 .. 896,568 0 3 £1,184,561 8 8 £1,184,561 8 8 6. During the triennium an important measure was enacted transferring the investment of the funds from the Public Trustee to the Public Service Superannuation Board, a change advocated in my last valuation report.

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Valuation. 7. In making the valuation it has been assumed that the funds will produce an interest yield at the rate of 4 per cent, per annum net. Probably for some time to come a, higher rate will be realized, particularly now that the investment of the funds has been placed in the hands of the Board ; but for the long period involved in a pension scheme a greater average rate than 4 per cent, could not he assumed with safety. 8. The Experience Table (Table VII) contains the rates of withdrawal, mortality of contributors, and retirement on pension assumed in arriving at the liability. These rates, which are the same as those used on the previous occasion, were as far as possible based upon the experience of the fund itself up to 1913, the death-rates amongst males embracing also the experience of the Government Railways salaried division (1903-1912), and the rate of retirement amongst females the experience of female teachers in the Teachers' Fund. The death-rates of female contributors were adopted from the experience of female teachers in Britain (Mr. George King), after comparison with the somewhat meagre, data of the fund itself. It may be mentioned here that owing to the disturbing influence of the war little use could be made of the statistics of the triennium 19141916. The Life and Service Table deduced from these rates is given in Table VIII of the appendix, together with the average salaries from which were derived the ratios of increase to be applied to the present salary of each individual officer. The rates of mortality assumed to rule among male pensioners were those of the actual experience of the fund to 1913 combined with that of the Railways and Teachers' Funds, whilst for female pensioners a table was constructed with the guidance of the limited experience available, giving rates somewhat below those of the New Zealand female population. In valuing the benefits to widows and children the statistics of the fund itself up to 1913 were made, use of as far as possible, but the rate of remarriage of widows has been taken from the statistics of the general population (widows and spinsters), and the death-rate of widows and children from Dr. Farr's Healthy English Mortality Tables. It has been assumed that all male and female contributors will retire at the ages of sixty-five and sixty respectively, if they have not retired before, reaching those ages. 9. The valuation balance-sheet is given in detail in Table IX, a summary being as follows : Liabilities. £ Value of contributors' pensions already granted for £80,343 per annum .. .. 060,139 Value of widows' and children's pensions already granted for £8,049 per annum. . .. 67,227 Value of prospective pensions (to present contributors) for back service .. .. 2,139,877 Value of prospective pensions (to present contributors) for future service . . . . J ,749,084 Value of prospective pensions to widows and children of present contributors . . .. 453,696 Value of -return of .contributions'on death, or .. .. .. .. 480,817 £5,550,840 Assets. £ Accumulated funds .. .. .. .. .. .. .. .. 89(1.568 Value of contributors' future contributions.. .. .. .. .. .. 1.047.191 Value of present and future Government subsidies .. .. .. ... .. 3.007,081 £5,550,840 10. This shows a total liability on the Government of the value of £3,007,081, of which £1,200,000 is met by the subsidy of £48,000 per annum, whilst the remainder' has yet to be provided for. At the last valuation the Government's liability amounted to £2,381,466. The increase on the present occasion is £625,61.5, which is made up to the extent of £147,500 by interest accumulations on the unprovided part of the liability, the balance of the increase being mainly due to the normal expansion in the number of contributors and salary charge. The pensions have increased from £60,970 per annum to £88,392, the number of contributors from 10,809 to 13,313, and the salaries from £1,820,379 to £2,287,591.. The average salary has increased from £168 to £172, and the additions being greater at the older ages have had greater effect upon the liability. In this connection it is interesting to note that though the pensions, the number of contributors, and the total salaries all show a greater increase than in the previous triennium, the Government's liability nevertheless shows a smaller increase. This is doubtless due to the fact that as time goes on the proportion of contributors who more fully provide for their own pensions becomes greater. VI: The Act (section 4-8 (2) ) requires the report to be so prepared " as to show the state of the fund at the close of the period, having regard to the prospective liabilities and assets and the probable annual sums required by the fund to provide the retiring and other allowances falling due in the ensuing three years without affecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." This lias been taken to mean that the estimated pensions falling due during the three years following the valuation are to be divided into two parts viz., (a) containing that part of the pensions provided for by the contributions, and (b) the remainder, which includes the pensions for service prior to joining the fund, and (as the contributions are insufficient to purchase full benefits for even future service) such part of the pensions for years of contribution as the contributions are not sufficient to provide for.

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The first is clearly a liability which should bo borne by the fund, but the second is not, and it is assumed that the intention of section 49 is that it should be jjaid for by a, subsidy, to be increased from time to time, if necessary, according to the Actuary's report. The estimated pensions falling due during 1917, 1918, and 1919, and the portions provided by the contributions and to be paid by subsidy respectively, axe as follows :— 1017. 1918, 1919. Required for — £ £ £ Current ordinary pensions .. .. .. .. 75,626 71,058 06 ,62' i New pensions and family pensions .. .. 17,941 32,708 49,057 93,567 103,766 115,680 Deduct amount of pensions provided by contributions .. .. 14,973 18,519 22,784 Subsidies required for ensuing three years .. .. 78,594 85,247 92,896 In pursuance of the foregoing paragraph therefore, I have to report that, b<\skl<'s the annual subsidy of £4H,000 now being paid, further subsidies of £31,000, £37,000, and £45,000 are required for (lie years 1917, 11)18, and 1919, or an average of about £38,000 per annum. In my report for the tfiennium ended 31st December, 1913, an additional subsidy of £1.8,000 was stated to be necessary, but owing to the exigencies arising out of the war the recommendation bas not yet been given effect to. Of the additional subsidy of £38,000 now required only £20,000 is therefore due to the present triennium. It is to be noted, by the way, that the proportion of pension provided by contributions of employees is steadily increasing. 12. The subsidies paid to the fund so far have in reality been principally old payments in a, now guise, taking the place of compensation for loss of office and gratuities; for whilst the Government's total contribution to the fund for nine years has been £300,500, the compensation the pensioners would have been entitled to if they had not accepted pensions was £215,209, reckoning only to the date they joined the fund. To this latter figure must be added the further compensation which would have been payable in respect of service since they joined the fund. There has also been a, great saving in gratuities ; for while these amounted to £37,091 for the eight years prior to the establishment of the fund, for the next succeeding eight years they only amounted to £6,065, or a, decrease of over £31,000. 13. Since the close of the triennium legislation bas been passed postponing retirements until after the war. This will operate to a certain extent as a, relief to the fund. The change in the control of investments, coupled with the hardening tendency in the rate, of interest, will also for some time to come probably bring to the fund an accretion of income beyond that anticipated in the valuation basis. GEN ERAL REM A RKS. 14. As previously reported, the present subsidy is based on the current pensions paid in excess ol what the contributions therefor have purchased. The pension list is a growing one, and the subsidy required will increase for many years, and it is very desirable that those additions should be Secured in some automatic manner without the necessity, as at present, for new legislation. The suggestion that the subsidy should take the form of a, fixed percentage of the annual salaries was discussed and favourably commented on in my last report. Another and somewhat similar method is that of a subsidy on the contributions actually paid by the public servants themselves. For instance, a subsidy of 67 per cent, on the contributions of males and 78 per cent, on the contributions of females would extinguish the deficiency in approximately seventy-five years, assuming the expansion of the Dominion to continue at the same rate as hitherto. After that the subsidy would drop to a very much smaller figure. The annual cost at the. outset by this simple method would be about £96,000 per annum, compared with £86,000 now required under the present method, and it is worthy of remark that this is a less percentage of the contributions of members than was paid by the Government directly or indirectly to the support of the National Provident Fund for the year ended 31 st December, 1916. The simpler method, though costing a- little more, at the outset, would cost less later on. Although £90,000 may seem a large sum, it is not so relatively, inasmuch as it comes to less than 5 pci , cent, of the salaries paid. Judging by ordinary commercial standards this is but a moderate price for the State as employer to pay for the considerable advantages it derives from the existence ol a, superannuation fund. It is, of course, erroneous to suppose that the fund exists only for the benefit of the pufolic servants, or that in paying the above subsidy the. State would be doing anything more than any large employer would and docs find it to his advantage to do. In this connection the following remarks by the late Mr. H. W. Manly, past President of the Institute of Actuaries, London, a world-wide authority on pension funds, are particularly applicable: " A fund maintained in a sound financial condition is, in my opinion, a blessing to both employer and employed. The employer secures a continuity of service, for the employee will think twice before he leaves a service where he has a number of years to his credit for pension, for a small additional income ; and if he (the employer) makes a proper contribution to the fund, in addition to guaranteeing a good rate of interest, he secures efficiency in the service by superannuating his servants with a reasonable pension when they are no longer useful. His salary list is a good 5 per cent. —1 am inclined to think in many cases nearer 10 per cent. —loss than it would be if there were no fund, and I do not think, therefore, that he can reasonably object to subscribe 5 or 6 per cent, of salaries to the fund." (J.I.A. 45/183.)

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An annual subsidy of 67 per cent, and 78 per cent, of the contributions in the case of males and females respectively, amounting as it does to less than 5 per cent, of the salaries, would therefore be quite a normal amount to pay for the benefits accruing to the State from the existence of a sound pension fund; and though from the actuarial point of view it would not greatly matter whether the subsidy were based upon salaries or upon contributions, the latter method has the merit of making fairly clear what each party is doing. In this connection it may be mentioned that up to the end of 1916 the employees had contributed £1,023,080 as against the £300,500 contributed by the State. The percentages I have quoted are subject to the proper flow of new entrants. If the fund were closed to these at any time the position would have to be reviewed. Percy Mutbk, F.1.A., Wellington, 25th May, 1918. Actuary to the Government Insurance Department.

APPENPIX. TABLE I. The Benefits and Contributions provided for by the Act. The contributions vary according to the age at the time when the first contribution becomes payable, and are as follows : — Age 30 and under .. .. .. .. 5 per cent, of pay. Contributions Over 30 and not exceeding 35 ..6 „ 65 „ 40 .. .. .. 7 „ „ 40 „ 45 8 ~45 „ 50 9 ~50 10 "I. On Attainment of Pension. Males at Age 65, or ajter Forty Years' Service; Females at Age 55, or after Thirty Years' Service. (1.) A pension of one-sixtieth of yearly salary for each year's service, with a limit of forty-sixtieths (two-thirds) of salary. Maximum pension for entrants after 24th December, 1909, £300. (2.) Or the option, in lieu thereof, of a return of total contributions. (Note. —The Minister in charge of a Department may retire contributors on pension in the following cases :— (a.) Where the age of a male contributor is not less than 60, or of a female contributor not less than 50. (b.) Where the age of a male contributor is not less than 55, if his length of service is not less than thirty years. (<;.) Where the length of service of a male contributor is not less than thirtyfive years. In any such exceptional cases the Minister may impose upon the retiring contributor such terms and conditions as to payments into the Fund or otherwise as he thinks fit.) J 11. On Retirement before Pension Age (on the Grounds of being medically unfit for Future Duty). Benefits .. <{ (1.) At any time, on the certificate of two doctors approved by the Board, a pension of one-sixtieth of yearly salary for each year's service, limited to forty-sixtieths. (2.) Or the option, in lieu thereof, of a return of total contributions. (Where officers of the Police Force are incapacitated by injuries received on duty the Board may increase the pension up to three-fifths of salary.) 111. On Retirement before Pension Age (on other Grounds than Medical Unfitness). (1.) On voluntary retirement or dismissal for misconduct, a return of total contributions. (2.) On compulsory retirement for any reason other than misconduct, after twenty years' service, a return of total contributions with 3J per cent, compound interest. IV. At Death, whether before or after becoming entitled to a Retiring-allowance. (1.) Leaving no widow or children: A return of total contributions less any sums received from the Fund during lifetime. (2.) Leaving a widow :— (a.) £18 yearly during widowhood ; or (6.) A return of total contributions, together with such compensation (if any) as the contributor would have been entitled to receive from the Consolidated Fund on compulsory retirement, less any sums received from the Fund during lifetime. (If death occurs before retirement the compensation is paid from the Consolidated Fund; if after retirement, from the Superannuation Fund.) (3.) Leaving children : ss. weekly to each child until age 14. (Note.' —The contributions and pensions are payable monthly, and the pensions are computed on the average salary for the last three years.)

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TABLE II. Statement of Progress of Active Membership.*

TABLE III. Particulars of Discontinuance of Active Membership.*

TABLE IV. Statement of Progress of Pensions.*

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Fear. New Members. Salaries. Annual Contributions. Increase by T Promotion. Animal Salaries. Oontrlbu- Number, tions. Mscontinuei Salarios. •A. Annual Contributions. Total in Force at Unci 3f Year. Annual Contributions. Number. Number. Salaries. 1908 .. 1909 .. 1910 . . 1911 .. 1912 .. 1913 .. 1914 .. 1915 .. 1916 .. 7,546 717 1 ,520 1,253 1,471 1,428 1,777 I ,916 1,593 £ I.112.099 77,877 205,427 134,065 ]45,396 123,493 170,471 163,335 129,628 £ 80,58w 5,290 12,814 8,196 8,080 7,047 9.996 9,248 7,326 i £ I 37,7691 2,301 : 310 58,268 3,425 630 73,936 4,509 472 81,431 4,906 ; 484 96,863 5,730 i 584 118,571] 7,022 i 646 135,220! 7,990 j 783 103,462| 5,916 939 120,532 6,711 I .1 ,060 826,052! 48,510 5,908 £ 42,521 103,414 61,322 69,174 80,469 87,916 103,170 121,152 131,114 £ 3,463 8,575 4,238 5,021 5,540 5,903 7,062 7,870 8,417 £ 7.236 1,107.347 7,323 1,140,078 8,371 1,358,119 9,140 1,504,441 10,027 I, (166.231 10,809 1,820,379 11,803 2,022,900 12,780 2,168,545 13,313 2,287,591 £ 79,361 79,504 92,589 100,670 109,840 118,006 128,930 136,224 141,844 Totals 19,221 2,261,79) I49,42:i 800,252 56,089

By Death. By Withdrawal or Dismissal. By Pel Old Age or Length ol Service. isions. By Ti to c Tansfer other tnds. Toi >al discont ;inuetl. Medically unfit. year. 3.ss S § "S &a o b 2 •Sβ Si g g OB as ! .1 a a I Si ! ad as "I I § 1 Is I a 2 2 a So I 21 M i-i <U O I1 ft 11108 .. 1900 .. 1910 .. 1911 .. 1912 .. 1913 .. 1914 .. 1915 .. 1916 .. 24! 37 28 33 45 40 53 99 134 £ £ I 41 437! 148 676 1 768 380 i 1,634 292 1 2,222 784 i 1,149 1,043 2,207 1,015 4,850 I ,574 5,535 1 ,260 £ 190 421 417 3,454 387 4,964 354 5,853 450 8,388 516 9,364 610 9,659 741 12,497 821 13,920 £ 74 J54 21 42 .. 73 215 64 .. 73 115 106 471 75 974 71 630 £ 0,058 17,039 4,147 8,631 0,992 8,716 11,243 8,272 .11,092 £ £ 20 .. 1,838 19 .. 1,958 13 .. 1,101 19 .. 1,314 19 01 1,017 13 78 591 11 .. 637 21 98 1,345 14 . . 751 20 19 13 19 19 13 11 21 14 2 3 2 5 0 4 3 3 20 £ 22 ;"> 13 10 21 5 37 78 742 030 472 484 584 646 783 939 1,060 484 3,628 5,745 7,7121 10,0921 10,711 12,374! I8,497j 20,833 £ 8,933 19,673 1 5,628 10,237 8,793 10,350 12,895 11,191 13,703 Totals 493 18,554 7,461 4,480 68,520 732 2,432 83,390 149 237 10,552 149 48 933 5,1908 90,676 101,403

Vcar. Attainment of Pension Ago or .Length of Service. (Sec. 35, &c.) Granted or Void by Death . ,, transferred. or Expiry. injioru.. Retired me mtod or inferred. lically unfit. (S& Void by Death or Expiry. N b u ™" Pension. ;. 36, Ac.) Girs trai In Force. 1908 1909 l910f 191 I 1912 1913 1914 1915 MHO S ™ Pension. I Pension. *g>» | Pension. £ £ £"" 74 6,688 1 57 73 0,001 153 17,038 4 324 222 23,315 84 8,737 12 945 294 31,107 72 8,631 23 2,593 343 37.145 04 0,992 22 2,124 385 42,013 71 8,710 18 ] 2,003 438 48,720 100 1.1,243 28 j 2,911 510 57,058 08 8,272 24 ' 2,072 554 03,258 07 11,093 30 3,720 591 71,225 73 222 294 343 385 438 510 554 59.1. £ 0,001 23,315 31,107 37.145 42,013 48,720 57,058 03,258 71,225 Number. 20 19 56 19 18 II 11 20 14 Pension. £ 1,838 I ,959 4,700 I ,314 1 .017 591 037 1,345 751 £ 4 077 5 080 10 021 9 520 14 903 13 730 5 307 9 590 I £~ 20 1,838 35 i 3,120 80 7,140 95 ! 7,839 104 I 8,330 101 8,018 99 7,925 114 8,903 119 9,118 Totals I 753 87,980 | 162 10,755 188 I 14,158 69 5,040 Year. Orai trari Death of Ooi Pensioi ntcd or isferred. itributor or Pension* i. (Sections 42 and Void by Death or Expiry. N ™" Pension. 48, JcT ily Total Pensions. to"': »-*«■ \T I J 2 BST Pen8ion - In Force. Number. Pension. N b u £" J Peneion. 1908 1909 JOlOf 1911 1912 1913 1914 1915 1910 30 47 40 40 72 90 90 130 99 £ 455 751 835 025 1 ,080 1 ,355 1,365 1,945 1,507 1 3 0 I I 14 12 12 22 34 £ 13 39 98 163 197 171 170 311 507 29 73 107 130 194 272 350 458 523 £ 442 1,154 I ,09 J 2,153 3,042 4,220 5,415 7,049 8,049 124 219 180 131 154 172 201 218 180 £ 8,951 19,748 14,078 10,570 9,095 10,0(12 13,245 11,562 13,951 2 ,11 23 44 45 44 53 51 73 £ 70 1 ,040 1,723 3,377 2,847 3,077 3,817 2,690 4,829 122 330 487 574 088 811 959 1,126 1,233 £ 8,881 27,589 39,944 47,137 53,385 00,970 70,398 79,270 88,392 Totals 638 9,724 115 1,675 1,579 I 111,862 346 23,470 • Uoinpi iled from Ai muni Kβ] >orts. t luclui lea pension! :rs transferred l'rom Police Pri ivident Fui

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TABLE V. Present Annual Pay and Contributions of Officers now in Service.*

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Age attained. Nui Male. iber. Present Annual Pay. Male. Female. Present Annual Contributions. Age attained. Female. Male. I'Viii.-ili'. 70 ' ; ..i 69 68 67 66 65 64 03 62 61 60 .. 59 58 57 56 55 54 .. 53 .. 52 51 50 49 48 .. 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 3 2 4 3 9 27 58 49 56 57 84 92 106 101 87 103 113 100 115 137 136 , 165 170 169 164 172 192 203 204 220 275 261 246 270 306 305 291 203 320 349 352 330 297 354 385 340 332 328 322 400 469 529 003 497 229 33 2 £ 030 760 1,960 1,612 3,108 8,120 17,418 14,428 10,091 17,510 24,195 29,255 32,210 20,149 27,170 31,750 32,300 31,009 32,517 37,737 34,896 44,127 45,194 42,714 42,584 42,081 40,579 45,852 48,193 52,910 04,732 59,657 52,352 59,432 03,378 04,920 5!), 325 57,922 64,798 88,803 08,270 01,248 53,344 (it), 348 88,207 51,831 10.153 41,830 37,732 40,015 41,405 30,385 38,630 l>7,05S 1 1,800 1,070 205 £ 83 70 19fl 101 311 800 1,715 1 ,429 1,640 1 ,734 2,320 2,738 2,020 2,030 2,405 2,850 2,774 2,553 2,642 3,040 2,707 3,385 3,230 3,030 2,901 2,913 3,118 2,866 3,025 3,270 3,050 3,483 2,880 3,245 3,42!) 3,414 3,000 3,004 3,302 3,480 3,410 3,002 2,072 3,017 3,100 2,502 2.308 2,092 I , 887 2,031 2,073 I ,909 1.032 1,383 500 84 I7f £ 20 i 2 1 2 7 II 5 7 3 !l 8 13 17 8 19 17 14 21 17 27 2(i 23 29 24 39 28 37 41 38 55 50 54 49 04 73 62 83 89 73 70 64 71 . 49 2!) 10 I 175 234 830 290 J ,08] 1,185 660 90S 397 887 1,230 1,848 2,412 1,115 2,800 2,430 1,904 2,085 2,210 3,834 3,535 3,000 4,104 3,282 5,204 4,123 4,908 5,218 4,034 0,047 6,325 5,010 4,830 0,144 7,577 5,042 7,830 7,75!) 5,930 5,852 4,031 5,30!) 3,595 1,792 630 66 17 23 83 20 97 III) 02 88 34 73 101 150 194 86 208 179 138 189 150 249 223 L88 257 180 300 22!) 201 271 236 35 [ 322 290 241 307 379 282 392 388 296 293 247 205 180 90 32 3 70 09 08 07 00 05 64 03 62 01 60 59 58 57 50 55 54 53 52 51 50 49 48 47 40 45 44 43 42 41 40 39 38 37 30 35 34 33 32 31 30 29 28 27 20 25 24 23 22 21 20 I!) 18 17 Hi 15 Totals 11,850 I ,403 2.135,272 154,500 133,109 8,793 k>m: tiled from cards. t Ai justment for ern >r» discovered on surds after suinmar I completed.

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TABLE VI. Classification of Pensions granted from 1st January, 1914, to 31st December, 1916, inclusive, showing the ages at which they were granted.*

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Age at which Pension granted. Attainn Length 01 Numbi Jiiuit Of if Servlc ier. Pension Age or se (Sec. 35, &c). Amount of Pension. Retii fumbe: red medically unfit fSTn/sao Total (Seo, Bβ, (BO.). 42, 48, &c). ,„ . , Age »v ■g which >r. u -p a Number. Pension Amount of j> §■§• Amount of granted. Pension. S o a Pension. ; Total. I |(£ M. V. Total. M. F. Total. M. F. j 81 .. 78 .. 77 .. 74 .. 73 .. 72 .. 71 .. 70 .. f>9 .. 68 .. 67 .. 86 .. 65 . . 64 .. 03 .. t>2 .. 01 .. 60 .. 59 . . 58 . . 57 . . 50 . . 55 . . i>4 .. 33 .. 52 .. 51 .. 50 .. 49 .. 48 . . 47 -. 40 .. 45 .. 44 .. 43 .. 42 .. 41 .. 40 .. 39 .. 38 .. 37 .. 86 .. 35 .. 34 .. 33 .. 32 .. 31 . • 30 .. 29 .. 28 .. 27 .. 20 .. 25 . . 24 .. 23 .. 22 .. 18 .. 13 .. 12 .. 11 .. 10 .. 9 • • 8 . . 7 .. 6 .. 5 .. 4 .. 3 -• 2 .. I .. 0 .. i 2 1 3 4 3 5 4 7 30 09 4 6 13 8 6 5 10 7 7 7 7 2 4 3 1 1 1 2 1 2 1 3 1 1 2 1 1 2 1 3 4 3 5 4 7 :so 71 4 6 II 8 8 6 10 10 8 8 7 4 4 3 2 1 I JL Si d. 18 17 0 131 8 0 09 7 0 452 9 0 219 0 0 149 10 0 783 9 0 165 10 0 946 4 0 4,112 3 0 7,098 10 0 082 14 0 799 18 0 1,651 4. 0 1,012 19 0 883 (i 0 1,241 10 0 1,945 1.8 0 1,624 12 0 1,169 0 0 1,390 8 0 1,734 II 0 495 I. 0 711 12 0 640 15 0 187 .1. 0 151 1.3 0 135 5 0 2 2 1 2 3 I 2 1 I 3 1 3 2 1 1 1 £ s. d. £ & s. d. 1 18 . . 1 1 18 0 0 81 1.18 1 1 2 36 17 0 78 1 18 . . 1 1 18 0 0 77 118 2 1 3 149 8 0 74 2 30 1 2 3 105 7 0 73 1 18 :{ 1 4 470 9 0 72 2 30 4 2 0 255 0 0 71 , 1 18 3 1 4 107 10 0 70 1 18 5 1 0 801 9 0 09 1 1.8 4 1 5 183 10 0 08 I. 18 7 1 8 964 4 0 07 2 36 30 2 32 4,148 3 0 00 4 72 09 6 75 7,170 10 0 05 2 107 12 0 5 90 0 5 11 940 0 0 04 0 .. 0 799 18 0 03 2 30 13 3 10 1,087 4 0 02 3 54 8 3 11 1,660 19 0 01 2 30 6 4 10 919 (i 0 00 .... 5 I 0 1,241 10 0 59 2 150 10 0 I 18 12 1 13 2,114 14 0 58 1 109 17 0 0 108 8 9 17 1,842 9 0 57 2 200 10 0 1 18 9 2 11 1,393 10 0 50 3 290 5 0 2 30 10 3 13 1,710 1.3 0 55 2 36 7 2 9 1,770 11 0 54 I 21. 7 0 4 72 2 7 9 588 8 0 53 1 07 1 0 I 18 5 1. 0 790 13 0 52 1 18 3 1. 4 658 15 0 51. 2 181 17 0 3 54 3 4 7 422 18 0 50 I 82 12 0 . . .. 2 .. 2 234 5 0 49 1 37 8 0 • • ■ ■ 1 . . I 37 8 0 48 3 181 17 0 2 30 4 2 0 353 2 0 47 2 146 0 0 2 36 1 :j 4 182 0 0 40 3 256 10 0 2 36 3 2 5 292 16 0 45 2 209 10 0 4 72 2 4 0 281 10 0 44 1 105 3 0 2 36 I. 2 3 141 3 0 43 2 36 .. 2 2 30 I) 0 42 1 30 14 0 5 90 .. 6 0 120 14 0 41 3 54 . . :{ 3 54 0 0 40 1 17 16 0 2 36 I 2 3 53 16 0 39 2 110 17 0 4 72 1 5 0 182 17 0 38 I 0 0 0 5 90 1 5 6 90 0 0 37 I. 49 12 0 3 54 13 4 103 12 0 36 3 54 .. 3 3 54 0 0 35 I 70 13 0 7 126 1 7 8 190 13 0 34 6 108 . . 6 6 108 0 0 33 8 144 .. 8 8 144 0 0 32 1 52 13 0 1 18 1 ] 2 70 13 0 31 1 20 16 0 5 90 I 5 6 110 1.6 0 30 1 18 . . l 1 18 0 0 29 1 90 3 0 5 90 1 5 0 180 3 0 28 1 15 18 0 4 72 14 5 87 18 0 27 I 18... 1 -I 18 0 0 20 2 12 12 0 2 36 .. 4 4 48 12 0 25 2 1.5 19 0 2 36 I 3 4 51 19 0 24 1 1.2 5 0 3 54 1 ;j 4 66 5 0 23 1 10 1.5 0 .. .. 1 . . 1 10 15 0 22 I 1 13 0 . • • • 1 . . 1 1 13 0 18 10 130 1 flO 130 0 0 13 . . 8 104 8 104 0 0 12 12 150 12 156 0 0 11 15 195 15 195 0 0 10 10 130 10 130 0 0 9 17 221 17 221 0 0 8 12 156 I 12 156 0 0 7 12 156 f yd - u 12 156 0 0 6 17 221 17 221 0 0 5 14 182 14 182 0 0 4 14 182 14 182 0 0 3 12 150 12 156 0 0 2 11 143 11 143 0 0 1 21 273 J (21 273 0 0 0 2 2 1 2 3 1 I 2 I I 3 2 8 2 1 107 12 0 150 16 0 109 17 0 200 10 0 290 5 0 21. 7 0 07 1 0 181 17 0 82 12 0 37 8 0 181 17 0 146 0 0 250 16 0 209 10 0 105 IS 0 1 1 1 1 2 1 2 .1 1 1 1 2 4 5 2 3 2 1 6 1 2 2 4 1 1 3 2 2 2 4 2 2 5 3 2 4 5 3 3 7 6 8 1 5 1 5 4 1 2 2 3 86 72 36 36 90 54 36 72 90 54 54 126 108 144 18 90 18 90 72 18 36 36 54 1 2 1 3 4 3 5 4 7 30 09 0 (i i:s 8 0 5 12 8 9 II) 7 2 5 3 3 2 1 4 1 3 2 1 1 1 1 1 2 1 2 1 1 1 1 2 0 5 3 3 4 1 1 9 2 3 2 7 1 1 4 2 3 2 4 2 2 6 3 2 5 5 3 3 7 6 a l 5 1 5 4 1 4 3 3 I 1 30 14 0 1 1 1 1 1 1 2 1 1 17 16 0 110 17 0 0 0 0 49 12 0 1 1 1 1 1 1 70 13 0 1 1 1 1 1 52 .1.3 0 20 10 0 1 1 1 1 i 1 90 3 0 IS 18 0 1 1 1 1 1 1 2 1 2 2 1 1 1 12 12 0 15 19 0 1.2 5 0 10 1.5 0 1 13 0 1 1 1 1 10 8 ' 12 15 10 17 1.2 12 17 14 14 12 11 21 130 104 156 195 130 221 156 156 221 182 182 156 143 273 93 92 Totals 221 II 235 31,204 0 0 38 45 2,732 .17 0 321 4,853 352 249 iOI 38,789 17 0 •(!, jmpjled from eard^.

H.—26a,

TABLE VII. EXPERIENCE TABLE. Rates per Cent, per Annum of Withdrawal, Mortality, and Retirement.

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Conti rlbuting Membei rs: Males. Contributing Membi irs: Females. Age. Bate of Withdrawal (Public Service Superannuation Fund). Bate of Mortality (Combined Now Zealand Superannuation Funds). Bate of Retirement (Public Service Superannuation Fund). Kate of Withdrawal (Public Service Superannuation Fund). Bate of Mortality (Assumed). Bate of Betirement (Combined New Zealand Suporannuatioo Funds). Age. 18 Iβ 17 18 lit 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 30 36 37 38 30 40 41 42 43 44 45 4(i 47 48 49 50 51 52 S3 54 55 56 57 58 59 60 (il (!2 63 04 ti-50 0-40 (i-28 (i-lti 6-03 5-90 5-75 5-61 5-46 5-30 5-13 4-95 4-76 4-55 4-30 4-10 3-90 3-73 3-57 3-43 3-32 3-22 3-12 3 02 2-92 2-82 2-72 2-62 2-52 2-42 2-32 2-22 2-12 2-01 1-91 1-81 1-70 1-60 1-50 1-40 1-30 1-20 - 109 0-98 0-88 0-73 0-52 0-20 0-20 0-20 0-20 0-20 0-21 0-21 0-22 0-23 0-24 0-25 0-26 0-27 0-28 0-29 0-30 0-32 0-34 0-36 0-38 0-40 0-42 0-44 0-46 0-49 0-52 0-53 0-54 0-55 0-57 0-59 0-60 0-03 0-67 0-70 0-73 0-78 0-82 0-86 0-92 0-98 1-05 1-15 1-25 1-37 1-52 1-69 1-88 212 2-40 O'lO 0-10 o-io O'lO 0-10 o-io o-io o-io 012 0-14 O-Ki 0-18 0-20 0-20 0-20 0-21 0-22 o-2:i 0-24 0-25 0-26 0-27 0-28 0-2(1 0-30 0-41 0-53 0-68 0-88 1-12 1-37 1-69 2-07 2-52 3-05 3-74 4-57 5-81 7'91 13-00 21-20 29-60 3-00 3-15 3-40 3-90 5-50 7-40 9-30 11-10 12-80 13-70 13-90 13-90 13-70 13-30 12-80 12-00 11-00 10-00 9-20 8-60 8-10 7-75 7-40 7-10 (>-90 (i-70 6-50 6-20 5-90 5-50 5-10 4-55 3-85 0-22 0-23 0-24 0-25 0-2(1 0-27 0-29 0-30 0-31 0-3 1 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-33 0-33 0-33 0-33 0-34 0-34 0-36 0-38 0-40 0-44 0-4H 0-52 0-57 0-03 0-(i!) 0-7(5 0-83 0-90 0-98 1-07 1-15 1-25 1-34 1-45 1-56 0'2S 0-25 0-28 0-25 0-25 0-30 0-4(1 0'50 ()•()() 0-70 0-88 I-OK L-38 I -83 2-58 3-fi:s 4-(i3 5-90 7-43 9-25 11-88 14-63 17-38 19-88 21-30 22-50 25-00 15 It. 17 IS 19 20 21 22 23 24 25 2(i 27 28 29 30 31 32 33 34 35 311 37 38 39 40 41 42 43 44 45 4(i 47 48 49 50 51 52 r>3 54 55 56 57 58 59 60 61 02 63 64

H.— 26a.

TABLE VIII. LIFE AND SERVICE TABLE. Based upon the Rates per Cent, per Annum of Withdrawal, Mortality, and Retirement given in Table VII applied to 100,000 Entrants at Age 15.

2—Jl. 26a.

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Males. Fomales. Age. Existing in Service. With- Dc . ths Retire- Average drawals. u0 *™- ments. : Salary.' Existing in With- „ .. Service. drawals. Dcaths - Retirements. Average Salary.* Age. 15 .. 16 .. 17 .. 18 . . 19 .. 20 .. 21 .. 22 .. 23 . . 24 .. 25 .. 26 .. 27 .. 28 .. 29 .. 30 . . 31 32 .. 33 . . 34 . . 35 . . 36 .. 37 . . 38 . . 39 . . 40 .. 41 .. 42 .. 43 .. 44 .. 45 .. 46 . . 47 .. 48 . . 49 . . 50 ., .51 .. 52 .. 53 . . 54 .. 55 .. 56 . . 57 . . 58 .. 59 .. 60 .. 61 .. 62 .. 63 .. 64 .. 65 .. 100,000 93,300 87,143 81,495 70,312 71,557 07,185 03,180 59,490 56,052 52,891 49,992 47,337 44,909 42,094 40,092 38.801 37,174 35,609 34,152 32,790 31,504 30,294 29,155 28,080 27,060 26,094 25,183 24,324 23,514 22,748 22,022 21,337 20,687 20,047 19,418 18,793 18,161 17.519 ; 16,865 16,189 15,485 14,746 13.906 I 13,133 I 12,237 I 11,250 10,112 8,607 6,600 4,495 0,500 5,971 5,473 5,020 4,602 4,222 3,864 3,545 3,248 2,970 2,714 2,475 2,253 2,044 1,835 1,008 1,516 1,387 1,272 1,171 1,089 1,015 945 880 820 763 710 660 613 569 528 489 452 416 383 351 320 290 263 236 210 186 100 136 116 90 58 200 180 175 163 153 150 141 139 137 135 132 130 128 120 1,24 122 124 126 128 130 131 132 133 134 138 141 138 136 134 134 134 132 134 139 140 142 147 149 151 155 159 163 170 175 180 180 190 190 1.82 158 i ■59 50 53 50 47 45 43 41 47 52 57 01 00 83 01 01 62 62 03 63 63 63 64 04 04 85 106 132 105 203 240 285 335 390 450 522 000 711 890 1,315 1,825 1,947 4,495 £ 49-5 52-2 57-7 65-6 75-8 88-0 101-1 U4-4 127-0 140-3 151-7 102-3 171-5 179-5 J 80-0 191-2 195-2 198-5 201-6 204-8 208-0 211-4 215-2 219-2 223-2 227-0 230-8 234-0 238-4 242-4 240-6 251-2 255-8 200-4 205-0 209-8 275-0 280-0 287-0 292-0 297-0 300-2 302-4 303-0 304-0 304-0 304-0 304-0 304-0 304-0 304-0 100,000 98,781 !>3,510 90,107 80,367 81,304 75,150 07,944 60,198 52,307 44,978 38,584 33,099 28,400 24,584 21,358 18,727 16,607 14,893 13,438 12,205 11.146 10,21.8 9,403 8,670 8,014 7,409 6,857 0,358 5,901 5,487 5,100 4,753 4,420 4,232 4,007 3,740 3,431 3,083 2,686 2,205 1,845 1,455 1, 126 856 029 3,000 3,049 3,179 3,5.15 4,749 6,024 0,989 7,542 7,705 7,166 6,252 5,363 4,534 3,785 3,147 2,503 2,000 1,001 1,370 1,150 989 804 756 608 598 537 482 425 375 324 280 233 183 219 222 224 225 224 220 217 204 186 103 142 122 1.05 91 79 08 60 53 48 43 40 :jo 33 31 29 28 26 26 26 26 26 27 27 28 29 30 31 31 30 28 26 23 19 16 13 37 34 30 28 20 28 35 40 44 48 50 64 75 93 123 160 190 237 278 317 307 393 394 367 310 254 214 029 £ 03-8 05-2 6fv9 69-5 72-5 75-7 79-1 82-5 86-0 89-5 93-2 971 101-2 105-5 109-9 114-4 119-0 123-0 127-9 131-8 134-1 135-2 135-8 136-1 130-6 136-9 1.37-1 137-3 137-5 137-6 137-7 137-8 137-9 138-0 138-0 138-0 138-0 138-0 138-0 138-0 138-0 138-0 138-0 138-0 138-0 15 10 17 18 19 20 21 22 23 24 25 20 27 28 29 30 31 32 33 34 35 30 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 05 • • are ap; 'hese salary scales are no ilied to the actual preaeU in thorns' salary of olvos assumi eauh contri Ml in making the valuation, uutor, lint, rattier tlio ratli >s of increusi derived hei ct'rora

H.—26a

TABLE IX. summary of public service superannuation results. Valuation Balance-sheet as at 31st December, 1916. Liabilities. Males— £ £ Value of 071 pensions for £78,950 4s. Mtl. per annum already granted .. .. 64a,508 ~ 250 pensions for £4,500 per annum granted to widows of contributors or pensioners .. .. .. .. .. .. .. 49,044 „ 273 pensions for £3,549 per annum granted to children of ducoased contributors or pensioners .. .. .. .. .. .. 17,583 ~ prospective pensions for back service .. .. .. .. .. 2,051,909 „ for future sorvice .. .. .. 1,654,235 „ „ to widows -. 379,498 „ „ to children .. .. .. .. .. 74,198 „ return of contributions on death .. .. .. .. .. 27,932 „ „ on withdrawal .. .. .. .. 413,830 ——— 5,312,397 Females— Value of 39 pensions for £1,386 13s. 3d. per annum already granted .. .. 16,571 „ prospective pensions for back service .. .. .. .. .. 87,968 ... „ for future service .. .. .. .. 94,849 ~ return of contributions on death or withdrawal .. .. .. 39,055 238,443 £5,550,840 Assets. £ Accumulated funds .. .. .. .. .. .. .. .. .. 896,568 Value of future contributions from males .. .. .. .. .. .. .. 1,583,470 ~ „ from females .. .. .. .. .. .. .. 63,721 subsidy of £48,000 per annum .. .. .. .. .. .. .. 1,200,000 „ future increases in subsidy to be provided .. .. .. .. .. .. 1,807,081 £5,550,840

Approximate Coil, of Paper. —Preparation, not given ; printing (750 copios), £10,

Authority : Marcus F. Marks, Government Printer, Wellington.—l9lB.

Piict fit..]

10