GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Appendix to the Journals of the House of Representatives, 1926 Session I, D-05

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1926. NEW ZEALAND.

GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Laid before Parliament in pursuance of Section 91 of the Government Railivays Act, 1908.

The Board lias the honour to transmit, for the information of Parliament, the following report upon the transactions in connection with the Government Railways Superannuation Fund for the year ended 31st March, 1926. The Revenue Account, Balance-sheet, and statements in connection therewith will be found appended. The balance of income over expenditure for the year amounts to £127,758 ss. 4d., as compared with £62,285 2s. sd. for the previous year. The increase is due almost entirely to the increased subsidy paid to the fund by the Working Railways Department, £145,000 being received, against £80,000 for the previous year. The expenditure on account of life allowances to members amounts to £198,889 15s. 9d., an increase of £17,286 4s. 9d. as compared with the figures for the previous year. The increase is due to the all-round increase in the scale of salaries and wages, and the corresponding increase in the retiring-allowances granted. On referring to Table A, Statement of Allowances, it will be seen that the average amount of the ninety-four allowances granted during the year is £219 lis. 6d., and that the average amount of the sixty allowances discontinued is £108 4s. lOd. The increase on account of payments to widows and children, £12,577 95., is due to the increase of the amount of allowance from £18 per annum for each widow, and £13 for each child, to £31 and £26 per annum respectively. As section 27, Part 11, of the Finance Act, 1925, which made provision for the increase in the allowances, also provided for a payment to the Superannuation Fund from the Consolidated Fund of an amount equal to the additional expenditure, no extra burden was placed on the fund. The amount received from the Consolidated Fimd on the foregoing account was £12,464 16s. 9d. Members' contributions for the year were £153,902 19s. 9d., against £144,767 9s. Bd., an increase of £9,135 10s. Id. On referring to Table B, Statement of Contributors, it will be seen that there is a net increase of 743 members, of whom 731 are contributing at 5 per cent., 70 at 6 per cent., and 34 at 7 per cent., and that contributors at 3 per cent, and 4 per cent, have decreased by fifty-three and thirty-seven respectively. Investment of the Fund.—The Investment Account has been increased during the year to the extent of £145,500. Loans maturing at the lower rates of interest have been promptly reinvested on more advantageous terms, and all moneys not required in the Current Account have been transferred to the Investment Account without delay. The interest amounts to £43,750 12s. Bd., an increase of £6,809 16s. Bd., as compared with the figures for the previous year. Reference to Table C, Statement of Investments, shows the average rate of interest on securities held at the 31st March, 1926, as 5-76 per cent., and the average rate earned on the mean funds for the year 5-684 per cent., as against 5-59 per cent, and 5-522 per cent, respectively for the previous year. The expenditure under the heading " Public Trust Charges " is based on the interest-collections, and is consequently £380 3s. lid. in excess of the figures for the previous year. Approval was received for the continuance of the cost-of-living bonus to annuitants in cases of special hardship where the allowance was less than £100, the amount of bonus granted being sufficient to bring the allowance up to £100, but with a maximum bonus of £26. The bonus is provided for out of the Consolidated Fund and is not a charge on the Superannuation Fund. At the 31st March, 1926, there were 1,367 members, 444 widows, and 521 children, making a total of 2,332 persons actually on the fund, involving an annual liability of £220,093 4s. 9d. J. G. Coates, Chairman of the Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1926.

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p n J! : n„ nr f ft r ' Section8l. Section 82. Section 82. Total Retiring and other On Age or for Medically Unfit. Widow?. ! Children. Allowances. Number. Number. | Number. Number. , , .. . ... Num- Annual Amount, 1 Annual Amount. . , . .. , Annual Amount. ; Annual Amount. a £31 per Annum., ~j at £26 per Annum. ~ | Annual Amount, M. F. Total. ] M. F. I Total. I M. F. Total. M. F. Total. I I I ! I S 1 I I ■ * | Retiring and other allowances — £ s. d. £ s. d. £ s. d. i I £ s. d. £ s. d. Existing at beginning of year .. 1,061 .. 1,061 165,710 4 3 271 1 272 25,472 6 6 430 13,330 0 0 258 j 254 512 13,312 0 0 1,590 1685 2,275 217,824 10 9 Granted during year at retirement 68 .. 68 17,356 17 0 26 .. 26 3,283 9 0 33 1,023 0 0 30 1 41 71 1,846 0 0 124 74 198 23,509 6 0 Total .. .. 1,129 .. 1,129 183,067 1 3 297 1 298 28,755 15 6 463 14,353 0 0 ! 288 295 583 15,158 0 0 1,714 759 2,473 241,333 16 9 Discontinued during year .. 46 .. 46 5,389 8 5 14 .. 14 1,105 3 7 19 589 0 0 35 27 62 1,612 0 0 95 46 141 8,695 12 0 Existing at end of year .. 1,083 .. 1,083 177,677 12 10 283 1 284 27,650 11 11 ! 444 13,764 0 0 253 268 521 13,546 0 0 1,619 713 2,332 232,638 4 9 Particulars of Retiring and other Allowances discontinued during the Year. How discontinued — By death .. .. .. 46 , .. 46 5,389 8 5 13 .. 13 1,056 4 7 6 186 0 0 1 1 26 0 0 60 6 ; 66 6,657 13 0 By expiry .. .. .. .. 1 .. 1 48 19 0 j 13 403 0 0 34 27 61 1,586 0 0 35 40 75 2,037 19 0 Total .. .. I 46.1 .. 46 | 5,389 8 5 14 .. 14 1,105 3 7 19 589 0 0 35 27 62 1,612 0 0 95 ; 46 ! 141 8,695 12 0 Progress of Retiring and other Allowances since establishment of the Fund to 31st March, 1926. Total granted .. .. .. 1,794 1 1,795 238,338 14 2' 473 1 474 40,776 1 3 663 17,953 0 0 j 647 629 |1276 24,167 0 0 12,914 11294 4,208 321,234 15 5 Total discontinued .. .. 711 1 712 60,661 1 4 190 .. 190 13,125 9 4 219 4,189 0 0 394 361 755 10,621 0 0 1,295 581 1,876 88,596 10 8 Total existing at 31st March, 1926.. 1,083 .. 1,083 177,677 12 10 283 1 284 27,650 11 11 444 13,764 0 0 i 253 268 j 521 13,546 0 0 1,619 713 2,332 232,638 4 9 ; 1 ' 1 J Less amount receivable from the Consolidated Eund on account of increased payments to widows and children .. .. .. .. .. .. .. .. .. 12,545 0 0 £220,093 4 9

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Table B.—Statement of Contributors.

Table C.—Statement of Investments. Funds invested at 31st March— 1926. 1925. £ s. d £ s. d. At 4| per cent. .. .. ■. .. 7,000 0 0 7.000 0 0 „4f „ .. .. .. .. •• 300 0 0 400 0 0 „ 5 „ .. •• •• • • 17,535 0 0 67,535 0 0 „5J „ .. .. •• •• •• 152,045 0 0 152,045 0 0 „5£ „ .. •• •• •• 80,120 0 0 137,870 0 0 „ 5| „ ■ .. •• •• •• 22,700 0 0 24,425 19 11 „ 6 „ .. •• •• • ■ 503,235 0 0 260,880 0 0 „6£ „ •• •• 17,525 19 11 1,940 0 0 Repayments during March and held for investment as from Ist April .. .. 1,100 0 0 3,965 0 0 £801,560 19 11 £656,060 19 11 Per Cent. Per Cent. Average rate of interest on securities held at 31st March .. 5-76 5-59 Average rate of interest earned on the mean funds .. 5-684 5-522 Table D. —Progress of the Fund. Balance forward. Allowances granted. £ s. d. £ s. d. 1903 7,056 11 9 1904 .. .. .. •• •• 40,357 17 3 12,010 14 8 1905 .. .. .. •• ■■ 68,670 7 8 8,519 7 8 1906 .. .. •• ■ 90,984 1110 6,348 13 7 1907 .. .. •• •• 110,736 12 3 4,398 14 11 1908 .. .. •• 126,642 18 11 7,332 7 11 1909 .. .. .. 157,15114 9 6,359 11 0 1910 .. .. .. .. •• 173,876 1 8 11,828 0 6 1911 .. .. .. .. .. 207,242 7 11 8,064 11 5 1912 .. .. .. .. 233.457 8 6 7,065 16 4 1913 .. .. .. .. .. 264,455 5 4 8,568 6 6 1914 .. .. .. •• •• 295,469 11 6 9,865 17 8 1915 .. .. .. •• 346,155 18 2 11,87114 3 1916 .. .. •• •• 362,810 4 2 9,662 2 5 1917 .. .. .. 377,585 2 1 11,733 1111 1918 .. .. .. ■■ 373,097 12 7 8,386 4 0 1919 .. .. .. .. .. 363,804 4 4 9,252 17 8 1920 .. .. •• •• •• 408,232 10 8 20,341 7 3 1921 .. .. .. .. •• 464,490 17 0 20,346 8 9 1922 .. .. •• 543,53110 8 23,050 2 0 1923 .. .. •• •• •• 584,219 2 4 22,791 1 0 1924 .. .. •• 671,827 6 6 21,272 4 0 1925 .. .. .. •• 734,112 8 11 36,409 14 0 1925 (increased allowances to widows and children) .. .. •• •• •• 12,246 0 0 1926 .. .. •• 862,139 3 6 23,509 6 0 £ s. d. 321,234 15 5 Less members died, &c. .. .. .. 88,596 10 8 Less liability of Consolidated Fund on account increased pavments to widows and children .. 12,545 0 0 — 101,141 10 S Annual liability at 31st March, 1926 .. .. £220,093 4 9

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I I . j I I J i I 3 per j 4 per , 5 per j 6 per 7 per 8 per 9 per „ , . Cent. I Cent. | Cent. Cent. Cent. I Cent. Cent. 0 a " J : i • i i i Contributors at commencement of year 2,499 661 7,969 1,289 187 18 5 12,628 New contributors during year .. .. .. 1,277 155 38 .. .. 1,470 Total .. .. 2,499 661 9,246 1,444 225 18 5 14,098 Contributors discontinued, during year 53 37 546 85 4 2 .. 727 Total contributors at 31st March, 1926 2,446 624 8,700 1,359 221 16 5 13,371

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Statement of Accounts in accordance with Section 90, Government Railways Act, 1908. Revenue Account for the Year ended 31st March, 1926.

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EXPENDITURE. j 1925-26. 1924-25. INCOME. 1925-26. 1924-25. | 7 " j " £ s. d. £ s. d. £ s. d. £ s. d. To Retiring-allowances to members .. .. .. 198,889 15 9 181,603 11 0 By Members'contributions .. .. .. .. 147,976 11 2 139,332 13 9 Allowances to widows and children .. .. .. 27,064 19 9 14,487 10 4 Members'contributions on account of casual service .. 5,926 8 7 5,434 15 11 Refunds of total contributions .. .. .. 23,552 17 8 25,739 18 4 Fines .. .. .. .. .. .. 219 0 0 425 15 0 Refunds of contributions in excess of allowances drawn by 342 10 8 737 12 11 Subsidies — deceased beneficiaries Consolidated Fund .. .. .. .. 25,000 0 0 25,000 0 0 Compensation under the Civil Service Act of 1866 .. 17 2 10 .. Working Railways Department .. .. .. 145,000 0 0 80,000 0 0 Travelling-expenses of Board members .. .. .. 1908 49 6 11 Treasury, on account of increased allowances to widows 12,464 16 9 Public Trust Office charges .. .. .. .. 1,044 10 2 664 6 3 and children Audit fees .. .. .. .. .. .. 50 0 0 50 0 0 Amalgamated Society of Railway Servants, on account 199 14 2 ... Transfers to other funds .. .. .. .. 200 13 11 50 14 6 M. J. Mack Salaries .. .. .. .. .. .. 1,391 12 2 1,310 9 0 Donations .. .. .. .. .. .. .. 10 0 0 Postages .. .. .. .. .. .. 129 16 8 109 3 4 Interest .. .. .. .. 43,750 12 8 36,940 16 0 Printing and stationery .. .. .. .. 80 8 0 56 5 8 Commission on Government Life Insurance collections .. 4 10 3 Balance carried down, being excess of income over expendi- 127,758 5 4 62,285 2 5 ture for the year 380,541 13 7 287,144 0 8 380,541 13 7 287,144 0 8 To Balance accumulated funds at 31st March, 1926 .. .. 862,139 3 6 734,112 8 11 By Accumulated funds brought forward on 1st April, 1925 .. 734,112 8 11 671,827 6 6 Refunds of contributions unclaimed (written off) .. 263 19 11 Retiring-allowances unclaimed (written off) .. .. 1 19 4 Widows' allowances unclaimed (written off) .. .. 2 10 0 Balance brought down .. .. .. .. 127,758 5 4 62,285 2 5 862,139 3 6 734,112 8 11 862,139 3 6 734,112 8 11

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Balance-sheet as at 31st March, 1926.

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LIABILITIES. I 1925-26. 1924-25. ' ASSETS. I 1925-26. | 1924-25. I I I I £ s. d. £ 8. d. £ s. d. £ s. d. Accumulated funds as per Revenue Account .. .. 862,139 3 6 734,112 8 11 Investment Account — £ s. d. Retiring and other allowances due (not paid) — j Investments .. .. .. 800,460 19 11 Members .. .. .. .. .. .. 1 838 2 0 692 0 10 Cash in hand .. .. .. 1,100 0 0 Widows and children .. .. .. .. .. 103 15 11 161 17 11 801,560 19 11 656,060 19 11 Refunds of contributions .. .. .. .. 1,182 3 5 1,728 15 7 Current Account —Cash in hand .. .. .. 17,679 3 7 10,685 6 5 Transfers to other funds .. .. .. .. 4 13 10 j 4 13 1 Contributions and fines in transit .. .. .. 13,590 4 8 12,168 10 0 Interest paid in advance .. .. .. .. 132 2 9 . 53 2 6 Contributions outstanding .. .. .. .. 1,43874 2,239 2 6 Commission due to Public Trustee .. .. .. 160 3 2 140 1 2 Contributions due by members in respect of casual service .. 10,643 15 5 8,651 1 0 Allowance recoverable .. .. .. .. .. 28 0 0 52 0 0 Cost-of-living bonus .. .. .. .. .. 440 7 0 1,447 12 10 Treasury subsidy on account of widows and children .. 1,115 11 1 Amalgamated Society of Railway Servants —Subsidy .. 9 7 7 Interest outstanding .. .. .. .. .. 7,778 8 3 6,763 6 10 Interest accrued but not due .. .. .. .. 10,275 19 9 8,822 10 1 Sundry Dr. (insurance premium) .. .. .. .. 2 10 5 864,560 4 7 736,893 0 0 864,560 4 7 736,893 0 0

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Cost-of-living Bonus Account: Disbursements and Recoveries during the Year ended 31st March, 1926.

Statement of Receipts and Payments foe the Year ended 31st March, 1926. Dr. Receipts. Cr. Payments. £ s d To Balance in hands of Public Trustee on 31st £ s. d. By Retiring-allowances to members .. .. 198,741 0 0 March, 1925 .. .. .. .. 40,685 6 5 Allowances to widows and children .. 27,077 17 11 Contributions by staff .. .. .. 150,835 3 7 Payments to legal representatives of deceased Fines .. .. .. .. .. 255 0 0 beneficiaries under section 86 (c) of GovernPayment from Consolidated Fund in terms of ment Railways Act, 1908 .. .. 342 10 8 section 19 of the Public Service Classifica- Investments .. .. .. .. 145,500 0 0 tion and Superannuation Amendment Act, Travelling-expenses of Board members .. 19 0 8 1909 .. .. .. .. 25,000 0 0 Fines remitted and refunded .. .. 110 0 Payment from Working Railways Department 145,000 0 0 Compensation under Civil Service Act, 1866.. 17 2 10 Payment from Consolidated Fund in terms of Payments to annuitants on account of Treasury section 27, Part 11, of the Finance Act, 1925 11,349 5 8 by way of cost-of-living bonus .. .. 5,451 5 4 Payment from the Amalgamated Society of Public Trust Commission ... .. 1,024 8 2 Railway Servants on account of Matthew Audit Office charges .. .. .. 50 0 0 Joseph Mack including contributions, in- Contributions refunded to members who have terest, and subsidy .. .. .. 887 5 6 left the Service .. .. .. 23,835 911 Interest .. .. .. .. 41,064 6 1 Contributions transferred to other funds .. 200 13 2 Amount of cost-of-living bonus received from Salaries .. .. .. .. 1,391 12 2 Treasury for disbursement to annuitants of Postages .. .. .. .. 129168 Superannuation Fund .. .. .. 6,458 11 2 Printing and stationery .. .. .. 80 8 0 Insurance premium .. .. .. 210 5 Balance of receipts over disbursements .. 17,679 3 7 Commission on collections of Government Life Insurance premiums .. .. 4 10 3 £421,541 19 1 £421,541 19 1 J. G. Coates, Chairman of the Government Railways Superannuation Fund Board. H. Valentine, Chief Accountant, New Zealand Railways. I hereby certify that the Statement of Receipts and Payments, Revenue Account, and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—G. F. C. Campbell, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given; printing (1,500 copies), £16.

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DISBURSEMENTS. 1925-26. j 1924-26. | RECOVEKIES. | 1925-26. j 1924-25. £ s. d. £ s. d. £ s. d. £ s. d. Balance due 31st March, 1925 .. 1,447 12 10 1,473 12 7 By Cash received .. .. 6,458 11 2 18,204 .5 9 Disbursements to annuitants .. 5,451 5 4 18,178 4 0 Balance due 31st March, 1926 440 7 0 1,447 12 10 6,898 18 2 19,651 16 7 6,898 18 2 19,651 16 7