TEACHERS' SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE PERIOD COMMENCING 1st JANUARY, 1920, AND ENDING 31st JANUARY, 1924.

Appendix to the Journals of the House of Representatives, 1927 Session I, E-08a

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1927. NEW ZEALAND.

TEACHERS' SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE PERIOD COMMENCING 1st JANUARY, 1920, AND ENDING 31st JANUARY, 1924.

Laid before Parliament in pursuance of Section 38 (4) of the Public Service Classification and Superannuation Amendment Act, 1908.

REPORT. BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR-GENERAL TO MAKE THE ACTUARIAL EXAMINATION OF THE TEACHERS' SUPERANNUATION FUND FOR THE ABOVESTATED PERIOD ENDING 31st JANUARY, 1924. Wellington, 6th October, 1927. ]. I have the honour to submit the following report on the Teachers' Superannuation Fund as at the 31st January, 1924, required by section 38 of the Public Service Classification and Superannuation Amendment Act, 1908, as amended by section 54 of the Finance Act, 1922. 2. The fund was originally constituted under the Teachers' Superannuation Act, 1905, but has subsequently been varied by the Public Service Classification and Superannuation Amendment Acts, 1908 and 1912. 3. All persons automatically become contributors to the fund who are first permanently employed after the passing of the Act- — (a) In the Education service as a teacher in any public school : (b) In any branch of the Education service which is also a branch of the Government service : (c) Under the University of New Zealand, Auckland University College, Victoria College, University of Ota,go, Canterbury College, or the Canterbury Agricultural College. Other persons first permanently employed in the Education service, not included above, have the option of joining the fund within six months of the date of their appointment. " Education service " means service in any capacity for not less than twenty hours a week — (a) Under an Education Board ; or (b) Under the governing body of a secondary school; or (c) Under the Managers of associated classes under Part VII of the Education Act, 1908 ; or (d) Under the Education Department in the case of Inspectors of Schools, or of Inspectors, Managers, or visiting officers of industrial schools, or of teachers of any schools under that Department ; or ■(e) Under the University of New Zealand, or under the Auckland University College, Victoria College, University of Otago, Canterbury College, or the Canterbury Agricultural College.

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4. The contributions and benefits provided by the Act, together with statements showing the progress of active membership, discontinuance of membership from various causes, the progress of pensions for each year, and the pensions granted since the previous valuation date, with the ages at which they were granted, will be found in Tables ItoIV of the appendix to this report. The ages of the contributors at the date of the valuation, their contributions, and other particulars are shown in Table V. 5. In addition to the statutory benefits above mentioned, the pensions payable to retired teachers in necessitous circumstances and to all widows and children of deceased members have been increased during the valuation period by a cost-of-living bonus from year to year, and as from the Ist April, 1925, the latter classes of additional allowances have been made permanent at the rate of £13 per annum in respect of the widow and of each child. These bonuses are provided for out of the Consolidated Fund, and, as they are not a charge on the Superannuation Fund, they have accordingly not been taken into account in making the valuation. 6. The number of pensioners on the fund at the 31st January, 1924, according to the cards supplied, was 1,078, drawing pensions amounting to £118,508 per annum. The number of contributors in active service at the Ist February, 1924, was 6,852, with aggregate salaries amounting to £1,855,500 per annum, and paying contributions at the rate of £104,141 per annum. The average rate of interest credited to the fund during the valuation period was £5 16s. per cent, per annum. 7. The income and outgo of the fund since the previous valuation were as follows : — Consolidated Revenue Account of the Teachers' Superannuation Fund prom the Ist January, 1920, to the 31st January, 1924. Income. £ s. d. Outgo. £ s. d. Funds at Ist January, 1920 .. 526,701 11 10 Retiring-allowances .. .. 353,896 13 5 Members'contributions .. .. 385,441 8 6 Contributions refunded .. .. 70,840 14 8 Government subsidy .. .. 221,416 13 4 Transfers to other funds .. .. 1,050 11 6 Interest .. .. .. 159,206 14 1 Commission .. .. .. 5,264 16 5 Transfers from other funds .. 434 17 2 Other payments .. .. .. 3,486 10 1 Funds at 31st January, 1924 .. 858,661 18 10 £1,293,201 4 II £1,293,201 4 11 Basis op Valuation. 8. In estimating the liabilities of the fund it was necessary to arrive at the proportion of the members withdrawing, dying, or retiring at each age. These factors have been carefully investigated in the light of the fund's experience since the previous valuation, and the rates and the Life and Service Table which have been adopted in the valuation as a result of this investigation are stated in Tables VI and VII appended. The next factors which entered into the calculations were the scales of average salaries in respect of males and females for the year immediately following the valuation date. The salary scales constructed were not themselves assumed in making the valuation, but the ratios of increase from age to age were applied to the actual salary of each contributor as at the Ist February, 1924. Pensions and widows' and children's benefits were valued on the same bases employed in the previous valuation. The rate of interest adopted in the valuation was 4 per cent. Results" op Valuation. 9. The valuation has been carried out in accordance with the above assumptions, and the results are shown in Table VIII appended, which table may be shortly summarized as follows : — £ £ Present value of the liability for benefits .. .. .. .. 6,125,697 Present value of the contributions receivable from members .. 1,192,487 Funds in hand .. .. .. .. .. .. 858,662 2,051,149 Present value of total liability of State .. .. .. .. .. 4,074,548 Less present value of existing subsidy of £68,000 per annum .. .. 1,700,000 Value of future subsidies to be provided by the State over and above present subsidy of £68,000 per annum .. .. . . . . .. £2,374,548 10. The above statement discloses a total State liability of £4,074,548, as compared with £2,813,176 at the previous valuation, giving an increase of £1,261,372. This increase has been due to two causes, viz.— {a) The natural tendency of the previous liability to increase on account of the principle laid down by the Act that the Government subsidy shall be so determined as to meet only the deficiency for the triennium immediately following the valuation date; and (b) The much larger number of contributors and pensioners who are now on the fund.

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With reference to (b) above, the following statement compares the number of contributors and total salaries and the number of pensioners and total pensions with the corresponding figures of the previous valuation :—

11. Section 38 (2) of the Act requires the report to be so prepared as to show "the probable annual sums required by the fund to provide the retiring and other allowances falling due within the ensuing three years, without affecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." The contributions are insufficient to provide the full benefits for service after joining the fund, and consequently it is assumed that the principle underlying the section is that the State should pay for pensions arising out of service before joining the fund and for such part of the pensions arising out of subsequent service as is not covered by the contributors' contributions. The estimated sums payable for pensions, the amounts purchased by contributions, and the subsidies payable on this basis during the three years succeeding the valuation date are as follows.: —

12. The above figures would give for the years 1924-25, 1925-26, and 1926-27 an average subsidy of £102,000 per annum, or £34,000 more per annum than is at present being paid. The following considerations, however, must be taken into account: — («) The actuarial recommendations made in the past in pursuance of the Act have not been fully carried out, the actual payments into the fund to the 31st January, 1924, being short by £213,251 of the amounts recommended. From Table IX of the appendix it will be seen that this shortage accumulated at 4 per cent, interest to the end of this year amounts to £314,324, and I consider that at least £15,000 per annum will require to be added to the future subsidies on this account. (b) The inclusion siuce the valuation date of house allowance, &c., in computing contributions and pensions will entail a further special addition to the Government subsidy to the fund, and I consider that an additional subsidy of £54,000 or £18,000 annually during the triennium will be required in this connection. (c) The State subsidy should also provide year by year the amount charged to the Superannuation Fund in administration expenses, less possibly the amount of commission due in connection with investments which might be regarded as a deduction from interest. I consider that since the fund requires the assistance of a subsidy the interpretation of section 38 (2) of the Act is that expenses amounting to, say, £2,000 per annum should form part of the subsidy, since they are not provided for by the employees' contributions. 13. I have accordingly to report that the annual subsidy required for each year of the period ending 31st January, 1927, is as follows : — £ Subsidy now being paid .. .. .. .. .. .. 68,000 Further annual subsidy required— £ Paragraph 12.. .. .. . . .. .. 34,000 Paragraph 12(a) above .. .. .. .. 15,000 Paragraph 12(6) above .. .. .. .. 18,000 Paragraph 12(c) above .. .. .. .. 2,000 69,000 Total annual subsidy required for the years 1924-25, 1925-26, 1926-27 . .£137,000 When making provision for this annual subsidy it is important to see that it is back-dated to 1924, and that interest of 4 per cent, is added to any portion paid late.

iPrevious Valuation. Present Valuation. Increase. I ! | Number of contributors .. .. .. 5.016 ' 6,852 1.836 Total salaries .. .. .. .. £1,265,772 £1,855,500 £589,728 Number of pensioners.. .. .. .. 785 ' 1,078 293 Total pensions .. .. .. .. £63,404 £118,508 £55,104

Required for 1924-25. 1925-26. 1926-27. £ £ £ Estimated normal pensions .. .. .. 127,888 135,718 144,490 Deduct amount provided by contributions .. .. 30,700 33,815 37,822 Subsidy required .. .. .. .. j 97,188 101,903 106,668

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General. 14. The limitation in respect of teachers joining the Service after the 24tli December, 1909, to a maximum pension of £300 per annum is a serious blot on the fund. Not only does such a limitation deprive the State of that hold which a superannuation scheme ought to give on its best men when more remunerative employment offers elsewhere, but it obviously causes those teachers who remain to defer their retirement, and a general movement in this direction might seriously affect the efficiency of the service. The limitation is therefore likely to defeat one of the principal aims and objects of the superannuation scheme, and it only causes a comparatively trifling saving in the cost of the total pensions. Few, if any, of the teachers who are affected by the limitation have yet reached the normal age of retirement, and possibly many have not fully realized its effect; but I would be failing in my duty if I did not draw special attention to the probable effects of such limitation, particularly as it is almost unknown in large pension schemes elsewhere. In this connection it may not be out of place to mention that the benefits accruing to the State as employer in having a good superannuation scheme are considered so great by the Imperial Government that their Civil Service pension scheme, which includes certain substantial death benefits in addition to a pension on a similar basis to that of the New Zealand Government Superannuation Funds, but without any such limitation by way of maximum pension, is paid for in full by the State. In the New Zealand Teachers' Superannuation Fund the Government had contributed at the valuation date only £399,417, as against £1,031,725 contributed by the employees themselves— that is to say, the teachers have shouldered practically three-quarters of the burden. 15. I consider also that it would be a great improvement if the present involved method of arriving at the subsidy were abolished in favour of an automatic method based upon a definite percentage of the contributions paid. Any estimate, however, of the percentage that would be necessary would need to make due allowance for the important changes in the constitution of the fund since the valuation date —e.g., the amended salaries scheme, and the inclusion of house allowance, &c., for the purposes of contributions and pensions. These matters are being fully investigated in connection with the 1927 valuation of the fund now in hand, and accordingly I considered that no material benefit would be gained by withholding a report which from causes outside of my control is long overdue. 16. In conclusion I have to acknowledge the capable assistance of Mr. G. W. Melville, F.F.A., and the efficient service rendered by the staff engaged in carrying out the heavy work of the valuation. C. Gostelow, F.1.A., Government Actuary.

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APPENDIX. TABLE I. The Benefits and Contributions provided for by the Act. (These benefits are slightly modified in the case of those existing contributors (numbering 24) who elected to remain under the 'provisions of Part IX of the Education Act, 1908, and in the case of -persons employed' in service under the universities on the 7th November, 1912, who joined the scheme before the Ist, July, 1913.) f 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. n , ~ ,■• ! Over 30 and not exceeding 35 .. .. 6 or e i „ 35 „ 40 .. .. .. 7 „ 40 „ 45 8 „ 45 „ 50 9 L „ 50 .. .. .. .. .. ..10 I. On Attainment of Pension. Males at Age 65, or after 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 the 24th December, 1909, £300. (2) Or the option, in lieu thereof, of a return of total contributions. (Note. —The Board may, with the approval of the Minister of Education, retire contributors on pension in the following cases : — (a) Where the age of a male contributor is nor 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. (c) Where the length of service of a male contributor is not less than thirtyfive years. In any such exceptional cases the Board may, with the approval of the Minister of Education, impose upon the retiring contributor such terms and conditions as to payments into the fund or otherwise as the Board thinks fit.) 11. On retirement before Pension Age (on the Grounds of being Medically Unfit for Future Duty). Benefits -n '' ' (1) At any time after fifteen years' service, 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. ! . . j 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. 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 (b) 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.*

Particulars of Discontinuance of Active Membership.*

New Members. Increase by Promotion. Discontinued. Total in Force at End of Year. eHr ' Annual Annual i Annual Annual Number. | Salaries. Contribu- Salaries. Contribu- Number.! Salaries. | Contribu- Number. Salaries. Contributions. tions. ! tions. tions - . ii . - £ £ , £ £ £ £ £ £ 1906-7 .. 2,939 444,950 33,652 ! .. .. 127 18,095 1,604 2,812 | 426,855 32,048 1907-8 .. 211 34,600 1,860 : 14,446 914 : 141 29,294 1,952 S 2,882 446,607 32,870 Part 1908.. 197 19,083 1,075 14,000 825 | 148 25,044 1,713 2,931 454,646 33,057 1909 .. 334 37,327 1,185 41,670 2,975 113 22,403 1,673 3,152 511,240 35,544 1910 .. 287 35,734 1,862 36,466 2,416 192 35,508 2,537 3,247 547,932 37,285 1911 .. 349 40,267 2,234 41,524 1,823 212 33,731 2,378 3,384 595,992 38,964 1912 .. 427 50,364 2,740 14,616 710 170 32,183 2,201 3,641 628,789 40,213 1913 .. 645 108,638 6,216 11,249 1,292 269 40,087 2,765 4,017 708,589 44,956 1914 .. 522 61,978 2,913 41,789 ] 2,541 270 45,471 2,579 4,269 766,885 47,831 1915 .. 428 55,792 3,096 79,773 4,610 253 42,428 2,742 4,444 860,022 52,795 1916 .. 468 61,114 3,352 48,365 2,863 259 42,795 2,802 4,653 926,706 56,208 1917 .. 398 52,722 2,899 36,262; 2,107 259 45,676 2,800 4,792 970,014 58,414 1918 .. 420 52,061 2,786 23,605 1,384 318 56,119 3,385 4,894 989,561 59,199 1919 .. 533 80,160 4,059 241,322 14,068 408 80,897 5,154 5,019 1,230,146 72,172 1920 .. 619 104,664 5,841 264,234 j 15,284 464 99,844 1 5,897 5,174 1,499,200 87,400 1921 .. 1,048 154,143 8,404 | 109,148 6,100 350 91,448 5,448 5,872 1,671,043 96,456 1922-3 .. 838 143,524 7,881 -(24,815): -(1,540) 414 112,240 7,517 6,296 1,677,512 95,280 1923-4 .. 1,029 172,597 9,371 40,555 2,595 467 116,594 7,155 6,858 1,774,070 100,091 Totals .. 11,692 1,709,718 101,426 1,034,209 60,967 4,834 969,857 162,302 I I i i I

By Pensions. « t f By Death. toother Total discontinued. or dismissal. ordinary (Age Extended Medicallv unflt Funds. or Service). Provisions. Meaically unnt - Year - 2c o g c a 2* 3c g ,• C3 ® 7. , • 33 © .* 35 ® cj O 02 O , • Ci O • CO r^o ® £ c v o-S S> fe o a 2< & +3® & O 3 -Q j .2 S -W g .2 £ -pfl & .2 s is * § g® s as s i g-g a. §3 : as a §2 s ss as F ■ ' § ® - B oa> P S 2 s 1 S £ 2:5c 5 OH; s go fc ; §M g ft ; Ah£ & l AH £ & S c ; fc p< £ I I I g |i s I S pgj 8 I § £ £ £ £ :£ £ £ j £ ££ 1906-7 .. 13 128 287 30 200 78 4,207 .. .. 6 ! 137 312 .. .. 127 471 4,800 1907-8 .. 12 296 266 105 938 20 1,182 .. .. 4 234 208 .. .. 141 1,468 1,656 Part 1908.. 10 415 279 120 1,202 9 503 .. .. 9 51 491 .. .. 148, 1,668 1,273 1909 .. 8 460 215 76 1.338 22 1,825 2 224 4 .. 343 lj 27 113' 1,825 2,607 1910 .. 8 438 127 131 3,078 38 4,099 8 714 6 . . 559: lj 31 192' 3,519 5,499 1911 .. 9 530 189 152 4,184 32 2,816 7 1,271 10 .. 630 2 83! 212 4.797 4,906 1912 .. 11 895 62 100 3,717 43 3,421 6 725 10 .. 946 .. .. 170 4.612 5,154 1913 .. 13 492 290 190 4,587 40 ! 3,903 12 1,510 14 .. 1,372, .. .. 269 5,079 7,075 1914 .. 16 1,016 ! 106 196 6,388 32 3,348 14 2,172 9 .. 784 1 3 48 270i 7,452 6,410 1915 .. 35 2,1671 285 169 4,9221 28 2,320 9 1,648 8 .. 725 1 4! 878 253 7,967 4,978 1916 .. [ 22 1,666 202 179 5,185 33 3,861 8 1,147 16 .. 1,442|, 1 212 259 7,063 6,652 1917 .. 43; 2,749 217 172 6,010! 27 3,060 4 544] 10 ..! 1,118 3 87 1 259 8,846 4,939 1918 .. j 67' 5,567 785 222; 7,710 20 2,550, 3 426 5 .. 704 1 27 318 13,304 4,465 1919 .. 19; 2,750 372 292 12,386 73 10,534 4 406! 18 .. 2,550 2 181 408 15,317 13,862 1920 .. 15: 3,482 380 369 16,108 55 7,739 3 553 : 11 .. 1,489 11 552 464 20,142 10,161 1921 .. 14 2,105 206 271 13,604 48 9.170 4 527, 11 .. 1,505 2 95 350 15,804 11,408 1922-3 .. 18' 4,835 395 2751 11,522 95 19,169! 13 2,30l' 9 .. 2,084 4 394 414 16,751 23,949 1923-4 .. 24 3,015 405j 339 16,052 79 16,617 15 2,767 8 .. 1,145 2 10 467 19,077 20,934 Totals .. 35733,006 5,0681' 3,388119,137 772100,324112 16,935! 168 422 18,407: 37 2,597 4,834155,162 140,734 I: I ! ! * Compiled from annual reports.

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TABLE III. Statement of Progress of Pensions.*

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Attainment of tension Age or Length of Extended Provisions. Retired Medically Unfit. Granted. In Force * Granted. In Force - Granted. Death or In Force. Year. ' ' Expiry. ®* S S § & § si g I [ g <£ g <5 e a I g s' i d rQ o o .2 .o .2 & .2 , rQ .2 -c .2 rQ 2 ,q , o o o I "a g 11 3 1 s i a | a §*§§ •§ \ p 5 & a> ss 3 ® S p g I ft P4 fc fz? & Ph Ah ft P4 & Pm ft j £ £ i £ £ £ £ £ £ I £ £ 1906-7 .. 78 4,207j .. .. 78 4,207 .. .. .. 6 312! .. .. 6 312 1907-8 .. 20 1,182, 4 | 220 94 i 5,169 .. .. .. 4 208' 1 52 9 468 Part 1908 9 503 3 156100 5,516 9 491 1 52 17 907 1909 .. 22 1,825 4 248 118 7,093 2 224 .. .. ' 2 224 4 343' 4 237 17 1,013 1910 .. 38 4,099! 8 693 148 10,499 8 714 .. ..10 938 6 559! 2 164 21 1,408 1911 .. 32 2,816! 3 175177 13,140 ' 7 1,271 .. .. 17 2.209 10 630 1 163 30 1,875 1912 .. 43 3,421 3 163217 16,398 6 725 .. .. 23 2,934 10 946 1 52 39 2 769 1913 .. 40 3,903 8 694249 19,607 12 1,510 .. .. 35 4,444 14 1,372 3 260 50 3 881 1914 .. 32 3,348 12 861 269 22,094 14 2,172 .. .. 49 6,616 9 1 784 3 247 56 4 418 1915 .. 28 2,320' 9 833288 23,581 9 1,648 .. .. 58 8,264 8! 725 3 341 61 4 80'' 1916 .. 33 3,861 6 570315 26,872 j 8 1,147 .. .. I 66 9,411 j 16 i 1,4421 3 337 74 5 907 1917 .. 27 3,060, 18 1,388324 28,544 4 544 2 254 68 9,701 10 j 1,118! 5 393 79 6 632 1918 .. 20 2,550; 8 610336 30,484 | 3 426 .. .. 71 110,127 ! 5i 704 3 211 81 7'l25 1919 .. 73 10,534| 9 525400 40,493 4 406 . . ..75 10,533 18 I 2,5501 5 646 94 9 029 1920 .. 55 7,739; 18 1,963437 46,269 3 553 2 600 76 10,486 11 ! 1,490, 6 616 99 9 903 1921 .. 48 9,170: 10 1,046475 54,393 4 527 2 315' 78 10,698 11 | 1,505' 8 760102 10,648 1922-3 .. 95 19,1691 16 1,388554 72,174 13 2,301 3 509 88 12,490 , 9 2,084] 3 515108 12 217 1923-4 .. 79 16,6171 13 ! 1,314620 87,477 , 15 2,766 4 712 99 i 14,544 | 8 1 1,145 5 81811] 12,544 ' 1 I I 1 1 i I I Totals.. 772 100,324152 jl2,847| 112 16,934 13 |2,39o! j .. 168 |l8,408j 57 5,864 .. Death of Contributor or Pensioner : Family Pension. | Total Pensions. Year. Granted. j V °or I In Force. Granted. | Void. Tn Force. N teT ( Pension - I N ™' Pension - | Penaion - | Pen9lon - | Pen9ion - I>en9ion - _ I . — £ j j £ £ £ £ £ 1906-7 .. .. 10 155 .. 10 155 94 4,674 .. .. 94 4,674 1907-8 .. .. 20 310 3 39 27 426 44 1,700 8 311 130 6,063 Part 1908 .. 26 403 2 31 51 798 44 1,397 6 239 168 7,221 1909 .. .. 32 476 5 65 78 1,209 60 2,868 13 550 215 9,539 1910 .. ..17 269 4 62 91 1,416 69 5,641 14 919 270 14,261 1911 .. .. 18 279 9 132 100 1,563 67 4,996 13 470 324 18,787 1912 .. .. 6 93 9 122 97 1,534 65 5,185 13 337 376 23,635 1913 .. .. 33 489 4 57 126 1,966 99 7,274 15 1,011 460 29,898 1914 .. .. 19 307 15 210 130 2,063 74 6,611 30 1,318 504 35,191 1915 .. .. 30 450 12 161 148 2,352 75 5,143 24 1,335 555 38,999 1916 .. .. 20 300 12 176 156 2,476 77 6,750 21 1,083 611 44,666 1917 .. .. 21 333 14 207 163 2,602 62 5,055 39 2,242 634 47,479 1918 .. .. 61 893 14 197 210 3,298 89 4,573 25 1,018 698 51,034 1919 .. .. 24 372 17 251 217 3,419 119 13,862 31 1,422 786 63,474 1920 .. .. 25 380 | 18 249 224 3,550 94 10,162 44 3,428 I 836 70,208 1921 .. .. 12 206 I 10 140 226 3,616! 75 11,408 30 2,261 881 79,355 1922-3 .. .. 25 395 i 17 251 234 3,760 142 23,949 39 2,663 | 984 100,641 1923-4 .. .. 25 405 11 168 248 3,997 , 127 20,934 33 3,013 j 1,078 118,562 Totals .. 424 6,515 j 176, 2,518 .. .. 1,476 j 142,182 398 23,620 | * Compiled from annual reports.

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TABLE IV. Classification of Pensions granted for Period from 1st January, 1920, to 31st January, 1924, inclusive, showing the Ages at which they were granted.*

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Attainment of Pension Age Modipniiv Unfit Retired under extended Widows and T . , or Length of Service. lietirea MecucaiJj unnt. , Provisions. Children. Total * winch • Pension Number. I Number. j Number. 1 ® § Number. granted. Amount of Amount of j Amount of \ A §1 Amount of Pension. Pension. Pension. 3 =£ Pension. M. P. J M. F. 11. I F. g o w M. j F. ' Total. £ s. d. £ s. d. £ s. d. | £ £ s. d. 79 .. .... .. .... .. 2 36 .. 2 2 36 0 0 73 .. .... .. .... .. 1 .18 1 1 18 0 0 71 .. .... .. .... .. 1 j 18 .. 1 1 18 0 0 70 .. .... .. .... .. 1 [ 18 1 1 18 0 0 69 .. 1 .. 32 7 0 .... .. .... .. 1 I 18i 1 1 2 50 7 0 67 .. 5 1,182 10 0 .. .. .. .... .. 3 54 5 3 8 1,236 10 0 66 .. 11 1 2,424 10.... .. .... .. 1 18 11 2 13 2,442 1 0 65 ... 19 1 4,141 13 0 .. .. .. .... .. 5 | 90 19 6 25 4,231 13 0 64 ..12 .. 3,680 16 0 3 .. 738 4 0 1 .. 36 8 0 3 54 16 3 19 4,509 8 0 63 .. 6 1,324 4 0 2 .. 372 17 0 2.. 537 11 0 2 36 10 2 12 2,270 12 0 62 . . 4 1 1,473 0 0 1 .. 178 6 0 2.. 334 18 0 2 36 7 3 10 2,022 4 0 61 .. 4 4 1,668 15 0 2 .. 480 4 0 3 .. 778 4 0 .. .. 9 4 13 2,927 3 0 60 .. 7 8 2,840 14 0 .. .. .. 8 .. 1,248 10 0 2 36 15 10 25 4,125 4 0 59 .. j 5 2 1,608 15 0 2 .. 297 13 0 2 .. 577 0 0 .. .. 9 2 11 2,483 8 0 58 .. 9 4 3,113 14 0 2 .. 466 8 0 2 .. 482 8 0 1 18 13 5 18 4,080 10 0 57 .. j 6 11 3,265 18 0 .. .. .. 1 .. 176 9 0 2 i 36i 7 13 20 3,478 7 0 56 .. 5 20 4,393 6 0.... .. 1 .. 365 19 0 3 54 6 23 29 4,813 5 0 55 .. 6 33 6,168 4 0.... .. 1 .. 273 16 0 : 7 33 40 6,442 0 0 54 .. | 1 14 2,615 17 0 I 1 327 19 0 2 1 469 2 0 1 18! 4 17 21 3,430 18 0 53 .. .. 10 1,862 19 0 1 2 434 5 0.. 2 197 1 0 1 18 1 15 16 2,512 5 0 52 .. .. 17 2,887 17 0 2 1 633 4 0 1 1 239 6 0 2 j 36 3 21 24 3,796 7 0 51 .. .. 7 1,182 7 0..,. .. 11 342 8 0 2 36 1 10 11 1,56015 0 50 .. j .. 10 1,531 15 0 1 2 392 5 0.. 3 260 4 0 1 18 1 16 17 2,202 4 0 49 .... 8 1.284 17 0 1 .. 189 6 0.... .. .. .. 1 8 9 1,474 3 0 48 .. .. 12 1,893 8 0 1.. 200 6 0 .. .. .. 2 | 36 1 14 15 2,129 14 0 47 .. .. 8 1,188 13 0 .. .. .. .... .. 1 18 9 9 1,206 13 0 46 .. .. 3 419 8 0 .. 1 114 0 0 .. .. .. .. i .. .. 4 4 533 8 0 45 .... 1 135 4 0.. 1 90 15 0 .... .. 1 j 18 .. 3 3 243 19 0 44 .. .. 1 117 17 0 1 2 372 19 0 .. .. .. .. .. 1 i 3 4 490 16 0 43 .. .. 3 426 11 0 .. .. .. .. j .. .. | 3 3 426 11 0 42 ; .. ; 1 101 4 0 .. .. .. i 1 1 101 4 0 41 ...... .. | .. 3 235 13 0 .... .. .... .. j 3 3 235 13 0 40 .. | .. .. .. .... .. : .. 39 .. I 86 1 0 .... .. .. .. 1 .. ] 86 1 0 38 .. .. 1 85 1 0 .. .. .. I 18 .. 2 2 103 1 0 36 ..... .. .. .... .. .... .. I 18 .. 1 1 18 0 0 35 ...... .. .. .. j .. .... .. 2 : 36 .. : 2 2 36 0 0 33 .. .. .. .. ! .. .. . . 2 ; 36 .. i 2 2 36 0 0 32 .. .. j .. .. .... .. .... .. 2 36 .. ! 2 2 36 0 0 31 .. .... .. .... .. 1 1 18 .. ! I 1 18 0 0 27 .... | .. .. .... .. .... . . 1 : 18 .. | 1 1 18 0 0 13 ...... .. .... .. .... .. 2 26 1 12 .. .. i .. .. .... .. | .. .. .. 1 13 11...... . . .... . . .... .. 2 , 26 10 .... I .. .. .... .. ! .. .. .. 2 26 9 ....!.. .. .... .. | .. .. .. 0 0 8 ...... .. .... .. .... .. 5 65 7 .. .. j .. .. .... .. j .. .. .. 2 26 y 19 | 17 36 468 0 0 6 ...... j .. .... .. .. .. .. 3 39 5 ; .. .... .. .... .. 4 52 4 I .. .... .. .... .. 5 65 3 ....;. . .. .... .. .... .. 1 | 13 2 .... | .. .. .... .. .... .. 4 I 52 1 .. .. j .. .. .... .. .... .. 2 | 26 0 .... | .. .. .... .. .... .. 3 39 J Totals 101 176 '52,437 19 0 I 21 I 18 6,223 1 0 27 8 6,319 4 0 87 1.386 168 270 438 66,366 4 0 [ 1 I ! * Compiled from cards.

E.—Ba

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

2—E. BA.

9

Nnmhpr Present Annual Pay as from I Present Annual Contributions 1st February, 1924. ! as from 1st February, 1924. Age attained. I r : ■^8® i 1 | attained. ! Males. Females. Males. Females. Males. | Females. £ £ I £ J £ is .. .• i II .. I 45 .. 2 .. 15 16 .. .. 3 2 1 190 125 10 1 6 16 17 .. .. 23-j I 33 1 1,947 2,712 I 97 I 136 17 18 .. .. 62 100 ! 5,452 8,279 ! 273 414 18 19 .. : 79 ; 147 7,384 12,527 369 626 19 20 .. .. 69 J 87 8,004 19,667 j 400 983 20 21 .. .. ! 72 212 11,857 31,436 593 1,572 \ 21 22 .. .. i 60 218 12,450 37,708 | 622 I 1,885 22 23 .. .. I 83 249 20,058 50,242 1,003 ! 2,512 23 24 .. .. | 86 256 21,846 53,413 1,092 ' 2,671 24 25 .. .. 78 236 21,634 49,766 1,082 2,488 25 26 .. 74 225 21,623 49,953 1,081 2,498 26 27 .. .. 70 163 21,031 ' 36,082 1,052 | 1,804 27 28 .. .. | 67 173 20,854 j 40,086 1,043 2,004 28 29 .. ; 79 166 25,096 ! 39,705 1,255 1,985 29 30 .. .. : 63 146 21,459 34,823 1,073 1,744 30 31 .. .. 83 132 28,734 32,884 1,450 1,667 31 32 .. .. 78 120 27,822 30,477 1,414 1,551 32 33 .. .. 61 108 22,905 ; 27,788 1,174 1,418 33 34 .. .. 76 106 28,769 27,104 1,503 ! 1,393 34 35 .. .. 71 84 26,671 22,331 1,372 1,159 35 36 .. .. 57 73 22,631 20,126 1,184 1,070 36 37 .. .. | 59 70 23,281 20,100 1,216 1,077 37 38 .. .. 55 77 23,244 20,822 1,229 1,117 38 39 .. ..i 69 75 30,072 20,574 1,623 1.124 39 40 .. .. 57 68 22,746 I 19,134 1 1,270 1,076 40 41 .. .. 67 62 26,302 17,732 1,420 1,026 41 42 .. .. i 74 59 29,835 16,548 1,666 956 42 43 .. .. 52 54 21,322 15,896 1,160 911 43 44 .. .. 67 86 29,395 24,763 1,647 1,483 44 45 .. .. 59 51 23,327 14,918 1,307 884 45 46 .. .. 46 61 19,523 18,132 1,159 1,053 46 47 .. .. 44 52 18,920 16,299 j 1,082 914 47 48 .. .. 44 53 19,301 15,927 1,187 1,017 I 48 49 .. .. 50 63 22,480 18,136 j 1,436 1,193 I 49 50 .. .. 45 54 18,309 16,425 1,178 1,088 50 51 .. .. 36 35 15,616 10,792 1,015 722 | 51 52 .. .. 51 40 22,786 11,924 , 1,437 785 52 53 .. .. 42 28 ! 20,559 8,790 1,471 649 53 54 .. ..I 41 21 21,357 7,068 1,549 520 54 55 .. .. j 40 26 | 18,407 7,893 I 1,351 i 601 55 56 .. | 33 11 I 15,295 3,230 | 1,102 254 56 57 .. .. 42 11 I 17,951 3,360 J 1,320 274 : 57 58 .. .. 36 15 j 15,338 5,017 I 1,227 388 j 58 59 .. .. 26 4 | 12,110 1,325 ! 991 114 I 59 60 .. .. j 26 8 11,536 2,139 I 945 j 191 60 61 .. .. 1 21 2 1 9,385 620 782 59 61 62 .. .. 9 1 3,655 285 j 299 I 26 ! 62 63 .. .. 10 1 5,515 160 505 | 16 63 64 .... 9 1 4,435 270 412 24 64 65 .. .. 14 1 6,833 260 625 23 65 66 .. .. 3 .. 890 .. 80 i 66 67 .. .. 3 .. 1,275 i .. 128 .. 67 73 .. .. 1 • • i 265 j 27 j 73 Totals .. 2,626 4,226 j 909,727 945,773 52,990 51,151 * Compiled from cards.

E.—BA

10

TABLE VI. EXPERIENCE TABLE. Probabilities per Cent per Annum of Withdrawal, Death, and Retirement used in the Calculation of Valuation Factors for the Teachers' Superannuation Fund.

Contributing Members : Males. Contributing Members : Females. Probabilities of Withdrawal, Death, or Retire- Probabilities of Withdrawal, Death, or Retirement within a Year (expressed as a Percentage ment within a Year (expressed as a Percentage of the Number existing in Service at the the Number existing in Service at the Age. beginning of the Year). beginning of the Year). Age. Withdrawal. | Death. | Retirement, j Withdrawal, j Death. Retirement. . - i Per Cent. Per Cent. Per Cent. - Per Cent. Per Cent. Per Cent. 15 .. . . 3-20 0-18 .. i 2-40 0-13 . . 15 16 .. .. 3-20 0-18 .. i 2-60 0-13 .. 16 17 .. 3-20 0-18 .. i 2-80 0-13 .. 17 18 .. .. 3-20 0-19 .. 3-10 ! 013 .. 18 19 .. . . 3-20 0-19 .. 3-60 j 0-13 .. 19 20 . . 3-20 0-19 ( .. 4-20 j 0-13 .. 20 21 .. .. 3-08 0-20 j .. 5-00 | 0-13 .. 21 22 .. .. 2-96 0-20 ! .. 5-70 j 0-13 .. 22 23 .. .. 2-84 0-20 .. 6-20 ! 0-13 .. 23 24 .. .. 2-73 0-21 i .. 6-70 0-13 .. 24 25 .. .. 2-62 0-21 I .. 7-00 I 0-13 .. 25 26 .. .. 2-51 0-21 .. 7-15 j 0-14 .. 20 27 .. .. 2-40 0-22 .. 7-20 [ 0-15 .. 27 28 .. . . 2-30 0-22 .. 7-10 0-16 .. 28 29 .. .. 2'20 0-23 .. 6-90 | 0-17 .. 29 30 .. .. 2-10 0-24 .. 6-70 | 0-18 .. 30 31 .. .. 2-00 0-25 .. 6-40 0-19 .. 31 32 . . .. 1-90 0-26 . . 6-20 ! 0-20 . . 32 33 . . .. 1-81 0-27 . . 5-80 0-21 .. 33 34 . . . . 1 1-72 0-28 i 0-055 5-50 0-22 .. 34 35 .. .. 1-63 0-29 ! 0-060 5-10 0-23 .. 35 36 .. .. 1-56 0-30 ! 0-065 4-70 ! 0-24 . . 36 37 . . .. 1-50 0-31 i 0-070 4-20 I 0-25 .. 37 38 .. .. 1-45 0-32 0-075 3-70 | 0-26 0-30 38 39 .. . . 1-40 0-33 0-080 3-10 | 0-27 0-40 39 40 .. .. 1-35 0-35 0-085 2-60 0-28 0-50 40 41 .. .. 1-31 0-37 ! 0-090 2-20 ! 0-29 0-60 41 42 .. .. 1-28 0-39 0-100 1-90 0-30 0-70 42 43 .. .. 1-26 0-41 0-120 1-60 0-31 0-90 43 44 .. .. 1-24 0-44 0-150 1-30 j 0-32 1-10 44 45 .. .. 1-22 0-47 0-180 0-95 ! 0-33 1-40 45 46 .. ■ .. 1-20 0-51 0-210 0-52 i 0-34 2-00 46 47 .. .. 1-18 0-55 0-240 .. 0-35 3-00 47 48 .. .. 1-16 0-59 0-280 .. 1 0-37 4-50 48 49 .. 1-13 0-63 0-320 .. 0-39 6-00 49 50 .. .. 1-12 0-68 0-400 .. 0-41 7-50 50 51 .. .. 1-10 0-73 0-550 .. 0-44 9-00 51 52 .. .. 1-08 0-78 0-750 .. 0-47 11-00 52 53 . . 1-04 0-83 1-150 .. , 0-50 13-00 53 54 . . . . 0-98 0-88 1-750 .. 0-54 16-00 54 55 .. .. 0-88 0-93 2-750 .. j 0-59 20-00 55 56 . . . . 0-68 0-99 4-000 . . | 0-64 25-00 56 57 .. .. 0-43 1-05 6-000 .. ! 0-70 25-00 57 58 .. .. 0-13 1-11 8-000 .. 0-70 25-00 58 59 .. 1-18 10-000 .. 0-70 25-00 59 60 .. .. 1-25 10-000 .. .. ; 100-00 60 61 .. . . 1-33 10-000 62 .. . . 1-41 10-000 63 . . . . i 1-50 15-000 64 . . . . 1-60 30-000 65 .. .. .. 100000

E.—Ba

TABLE VII. Life and Service Table. Based upon the Probabilities per Cent per Annum of Withdrawal, Death, and Retirement given in Table VI.

11

3Iales. , Females. Age. ! Existing in Withdrawals, i Deaths. Retirements. service Withdrawals. Deaths. Retirements. | Age. I ' ' ' ' I J I _J I 15 .. 100,000 3,200 180 | .. 100,000 2,400 130 .. 15 16 .. 96,620 3,092 174 .. 97,470 2,534 127 .. 16 17 .. 93.354 2,987 168 .. 94,809 2,654 123 .. 17 18 .. 90,199 2,886 171 .. 92,032 2,853 120 .. 18 19 87,142 2,789 166 .. 89,059 3,206 116 .. 19 •>0 84,187 2.694 160 .. 85,737 3,600 111 .. 20 ■>1 81.333 2,505 163 .. 82,026 4,101 107 .. 21 22 .. 78,665 2,328 ; 157 .. 77,818 4.436 101 .. 22 23 .. 76,180 2,164 152 .. 73,281 4,544 95 .. 23 24 .. 73,864 2,017 155 .. 68,642 4,599 89 .. 24 25 71.692 1,878 151 .. 63,954 4,476 83 .. 25 26 .. 69,663 1,750 146 .. 59,395 4,246 83 .. 26 27 . 67,767 1,626 149 .. 55,066 3,964 83 .. 27 28 .. 65,992 1,518 145 .. 51,019 3,622 82 .. 28 29 64,329 1.414 148 .. 47,315 3,265 80 .. 29 30 62,767 1,318 150 .. 43,970 2,946 79 .. 30 31 .. 61.299 1,226 153 .. 40.945 2,621 78 .. 31 32 59,920 1,138 156 .. 38,246 2,371 76 .. 32 33 .. 58,626 1,062 158 .. 35,799 2,077 75 .. 33 34 57,406 987 161 32 33,647 1,850 74 .. 34 35 .. 56,226 917 163 34 31,723 1,618 73 .. 35 36 55,112 859 165 36 30,032 1,412 72 .. 36 37 .. 54,052 810 168 38 28,548 1,199 71 .. 37 38 53,036 769 170 40. 27,278 1,009 71 82 38 39 . 52,057 728 172 42 26,116 810 71 104 39 40 51,115 690 179 43 25,131 653 70 126 40 41 .. 50,203 658 186 45 24,282 534 70 146 41 42 .. 49,314 632 192 49 23,532 447 71 165 42 43 48,441 610 199 58 22,849 365 71 206 43 44 47,574 590 209 71 22,207 289 71 244 44 45 .. 46,704 570 220 84 21,603 206 71 302 45 46 .. 45,830 550 234 96 21,024 109 71 421 46 47 .. 44,950 530 247 108 20,423 .. 72 613 47 48 .. 44,065 512 260 123 19,738 .. 73 888 48 49 43,170 488 272 138 18.777 .. 73 1,127 49 50 .. 42,272 474 287 169 17.577 .. 72 1,318 50 .51 .. 41,342 455 302 227 16.187 .. 71 1 1,457 51 52 .. 40,358 436 315 303 14.659 .. 69 1.613 52 53 39,304 409 326 452 12,977 .. 65 1,686 53 54 .. 38,117 374 335 667 ' 11,226 .. 61 1,796 54 55 .. 36,741 323 342 1,010 9,369 .. 55 1,874 55 56 .. 35,066 238 347 1,404 7,440 .. 48 1,860 56 57 .. 33,077 142 347 1,985 5,532 .. 39 1,382 57 58 .. 30,603 40 340 2,448 4,111 .. 29 1,028 58 59 .. 27,775 .. 328 2,777 3,054 .. 21 764 59 <50 .. 24,670 .. 308 2,467 2,269 .. .. 2,269 60 61 .. 21,895 .. 291 2,190 62 .. 19,414 .. 274 1,941 ■63 .. 17,199 .. 258 2,580 .. .. .. 64 . . 14,361 .. 230 4,308 <55 .. 9,823 .. .. 9,823 .. .. .. .. ••

E.—B A,

12

TABLE VIII. SUMMARY OF TEACHERS' SUPERANNUATION FUND RESULTS. Valuation Balance-sheet as at 31st January, 1924. Liabilities. Males— £ £ Value of 344 pensions for £61,727 15s. per annum already granted .. 556,869 „ 152 pensions for £2,749 3s. per annum granted to widows .. 27,542 ~ 96 pensions for £1,248 granted to children .. .. .. 5,199 „ prospective pensions for back service .. .. .. 1,315,140 ~ prospective pensions for future service .. .. .. 897,259 ~ prospective pensions to widows .. .. .. .. 114,407 ~ prospective pensions to children .. .. .. .. 15,817 ~ return of contributions on death .. .. .. .. 10,931 ~ return of contributions on withdrawal .. .. .. 96,856 3,040,020 Females — Value of 486 pensions for £52,783 9s. per annum already granted .. 666 ,831 ~ prospective pensions for back service .. .. .. 1,102,493 „ prospective pensions for future service . . . . 1,152,226 „ prospective death benefits —viz., return of contributions and pensions to children .. .. .. .. 25.363 ~ return of contributions on withdrawal .. .. .. 138,764 ■ 3,085,677 £6,125,697 Assets. £ Accumulated funds .. .. .. .. .. .. .. .. 858.662 Value of future contributions from males .. .. .. .. .. .. 670,071 ~ future contributions from females .. .. .. .. .. 522,416 ~ subsidy of £68,000 per annum now being paid .. .. .. .. 1,700,000 ~ future subsidies to be provided .. .. .. .. .. 2,374,548 £6,125,697

TABLE IX. Statement showing Subsidies paid as Compared with Subsidies required under the System indicated in the Act.

Approximate Cost of Paver. —Preparation, not given ; printing (1,600 copies), £22 10s.

By Authority: W. A. G. Skinner, Government Printer, Wellington.—l 927.

Price 6d. J

Shortage Year ended Subsidy required. Subsidy received. Shortage. 4 * to Fnd of 1927. I £ £ £ £ 31st March, 1906 .. .. 5,000 —(5,000) —(11,850) 1907 .. 2,000 .. 2,000 4,558 1908 .. 5,000 .. 5,000 10,956 3Jst December, 1908 .. 5,000 .. 5,000 10,534 1909 .. 8,000 7,000 1.000 2,026 1910 .. 11,000 7,000 4,000 7,792 1911 .. 17,000 7,000 10,000 18,730 1912 .. 17,000 7,000 10,000 18,009 1913 .. 17,000 17,000 Nil 1914 .. 33,000 17,000 16,000 26,641 1915 .. 33,000 17,000 16,000 25,617 1916 .. 33,000 17,000 16,000 24,631 1917 .. 43,000 17,000 26,000 38,486 1918 .. 43,000 17,000 26,000 37,006 1919 .. 43,000 43,000 Nil 1920 .. 68,000 43,000 25,000 32,898 1921 .. ; 68,000 43,000 25,000 31,633 31st January, 1923* .. 73,667* 71,583 2,084 2,536 1924 .. j 93,000 63,833 29,167 34,121 Totals .. .. | 612,667 399,416 213,251 314,324 * Period of 13 months.