TEACHERS' SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE QUADRENNIAL PERIOD ENDING 31st JANUARY, 1934.

Appendix to the Journals of the House of Representatives, 1936 Session I, E-08a

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1936. NEW ZEALAND.

TEACHERS' SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE QUADRENNIAL PERIOD ENDING 31st JANUARY, 1934.

Laid before Parliament in pursuance of Section 24 of the Finance Act (No. 2), 1935.

REPORT.

BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR-GENERAL TO MAKE THE ACTUARIAL EXAMINATION OE THE TEACHERS' SUPERANNUATION EUND FOR THE QUADRENNIAL PERIOD ENDING 31st JANUARY, 1934. Government Actuary's Department, Wellington, 19th September, 1936. 1. I have the honour to submit the following report on the Teachers' Superannuation Fund as at the 31st January, 1934, as required by section 111 of the Public Service Superannuation Act, 1927, as amended by section 24 of the Finance Act (No. 2), 1935. 2. The Fund was originally constituted under the Teachers' Superannuation Act, 1905, but has since been varied by legislative enactments, the most important being the Public Service Classification and Superannuation Amendment Acts, 1908 and 1912. The several enactments affecting the Fund were consolidated by the Public Service Superannuation Act, 1927. 3. Membership in the Fund is compulsory on all persons who are first permanently employed after the passing of the Act — (i) In the Education service as a teacher in any public school; (ii) In any branch of the Education service which is also a branch of the Government Service ; (iii) Under the University of New Zealand, or under the Auckland University College, Victoria University College, the University of Otago, Canterbury University 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 technical schools under Part VIII of the Education Act, 1914 ; or (id) 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 University College, the University of Otago, Canterbury University College, or the Canterbury Agricultural College. Legislation. 4. Since the date of the last valuation important legislation affecting the Fund has been passed by Parliament. The amendments having a direct bearing on the actuarial position may be briefly summarized as follows :— (a) Section 14 of the Finance Act, 1931, as amended by section 42 of the Finance Act, 1931 (No. 4), extended to any existing contributor the benefit of an " actuarial " pension on compulsory retirement within five years of the date when the contributor would have been entitled to retire as of right, or with the consent of the Board and the approval of the Minister of Education. In such cases it is provided that " the allowance shall not in any case be of an amount greater than the maximum amount which the Government Actuary certifies can be granted by way of such retiring-allowance without imposing on the Superannuation Fund any additional liability by reason of such retiring-allowance being granted before the earliest date on which the contributor would have been entitled, as of right, to receive a retiring-allowance on his voluntary retirement." I—E. BA,

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(b) Section Bof the Finance Act, 1931, gave to all contributors whose salaries were "cut" in accordance with the general reductions the option to protect their superannuation rights by continuing to contribute and receive pensions based on not less than the pre-cut salaries, or, alternatively, to pay contributions and have pensions based on actual salaries, in which latter case contributions paid in the past on any salary in excess of the amount to which the salary was " cut " were in effect refunded to the contributor as they were applied, until exhausted, by the Superannuation Board in reduction of contributions thereafter becoming payable. This latter gesture was too generous inasmuch as some deduction should have been made for the cost of covering the liability in respect of the contributor retiring medically unfit. (c) Section 9 of the National Expenditure Adjustment Act, 1932, as amended by sections 24 and 25, Finance Act, 1932-33 (No. 2), dealt with the position caused by the second salary " cuts " in a manner somewhat similar to (b) above, but introduced a new element as regards the contributions paid in the past on " excess " salaries by those officers who elected to contribute in future on actual salaries, as it was provided that such excess payments should be held by the Superannuation Board to the credit of this contributor and paid to him on the date of his retirement or his earlier death. This provision is obviously a compromise, and like most compromises will not stand examination. In effect, it provides that the younger the contributor the more heavily is his refund subjected to the operation of discount. Actually the reverse should be the case, since there need be very little deduction (if any) in the case of the youngest contributors, as the risk to the Fund of having to provide a medically unfit benefit at such ages is negligible, and is offset by the interest on the " excess " contributions. As the member's age increases so does the risk of retiring medically unfit call for a larger deduction from the contributions, till an age is reached where the Fund is liable to make a loss if any portion of the "excess" contributions is refunded. While lam definitely of opinion that the option of a refund of " excess " contributions should never have been allowed, Government granted it in full in 1921 and 1931 and tacitly conceded the principle in 1932, the only difference being that the contributor is in effect deprived of interest on such refund. Under the circumstances, and in view of the protests and representations made by staff organizations that the refunds should be made immediately and applied in reduction of future contributions, I deemed it advisable to make in the valuation a special reserve of £30,000 approximating to the full amount of such " refunds." This overstates the liability, but the amount involved is small compared to the total liability of the State. {d) The New Zealand Debt Conversion Act, 1932-33, and the Local Authorities Interest Reduction and Loans Conversion Act, 1932—33, had the effect of substantially reducing the interest-yields on Government securities and local-body debentures as from the Ist April, 1933. It is gratifying to note, however, that, for the quadrennium under review, Treasury made a special subsidy to the Fund in respect of reductions in the interest income from these classes of securities. Particulars of Valuation. 5. 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 during the quadrennium, with the ages at which they were granted, will be found in Tables ItoIV of the Appendix to this report. The number of contributors at the date of the valuation, with their ages, salaries, and contributions, are shown in Table V. Pensioners. 6. At the valuation date there were 1,542 pensioners with annual pensions of £289,550 25., and I submit hereunder an analysis of the pensions under four main headings, namely :— (а) Normal pensions payable in respect of officers who retired as of right on completion of the statutory period of service or attained the statutory retiring-age. (б) Medically unfit pensions, payable to those who broke down in service. (c) Actuarial pensions, payable in respect of those compulsorily retired within five years of normal retirement. (d) Pensions under the extended provisions of the Act. Annual Amount of Pension. Males— Number. £ s . d. Normal pension .. .. .. .. ..369 117,790 13 0 Medically unfit pension .. .. .. .. 92 15,792 8 0 Extended provision of the Act .. .. .. .. 100 20,564 18 0 Totals .. .. .. .. ..561 154,147 19 0 Females— Normal pension .. .. .. .. ..765 113,312 0 0 Medically unfit pension .. .. .. .. 84 7,018 15 0 Actuarial pension .. .. .. .. .. 16 1 Q6O 15 0 Extended provision of the Act .. .. .. .. 116 13 0 Totals .. .. .. .. ..981 135,402 3 0 Grand totals .. .. .. .. 1,542 £289,550 2 0 I

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7. Section 75 of the Act sets out the conditions for normal retirement with the following proviso : " Provided that the Board may with the approval of the Minister of Education extend the provisions of this section to any case in which the age of a male contributor is not less than sixty years, or the age of a female contributor is not less than fifty years, or to any case in which the age of a male contributor is not less than fifty-five years if his length of service is not less than thirty years, or to any case in which the length of service of a contributor is not less than thirty-five years ; and in any of those cases the Board may with the like approval impose upon the retiring contributor such terms and conditions as to payments into the Fund or otherwise as the Minister thinks fit." It seems clear that the original intention of this proviso was to deal with special cases, and that accordingly the power was to be sparingly exercised. Of the three Government Superannuation Funds, the Teachers' is the only one that made any pretence of so interpreting the section. It is also gratifying to note that the Board safeguarded the Fund by making use of its power to impose terms on contributors so retiring. The Board, in fact, anticipated the " actuarial pension " legislation introduced in 1931, by using an average table of percentage deductions and applying it to the pension that would have been allowed in respect of a medically unfit retirement. Each case was dealt with on its merits by scaling down such deductions to a figure deemed equitable by the Board. 8. The income and outgo of the Fund since the previous valuation were as follow : — Consolidated Revenue Account of the Teachers' Superannuation Fund from the Ist February, 1930, to the 31st January, 1934. Income. £ s. d. Outgo. £ s. d. Funds at Ist February, 1930 .. 1,198,711 3 8 Retiring and other allowances .. 1,074,082 6 8 Members contributions .. .. 485,530 3 9 Contributions refunded .. .. 124,173 9 10 Government subsidy .. .. 251,166 13 4 Transfers to other funds .. .. 1,039 18 8 Subsidy Fiji Government .. .. 926 16 9 Commission .. .. .. 7,426 9 0 Subsidy under section 114 of the Act .. 16,019 16 11 Reserve for bad debts .. .. 7,500 0 0 Transfers from other funds .. .. 1,435 18 8 Other payments .. .. .. 7,863 3 4 Interest on investments .. .. 268,010 3 0 Funds at 31st January, 1934 .. 1,003,184 16 1 Interest on arrears of contributions .. 2,007 4 0 Other receipts .. • • •. 1 > 462 3 6 £2,225,270 3 7 £2,225,270 3 7 9. Strictly speaking, the Fund shown above should be increased by £39,416 13s. 4d., which sum the Board has not brought into the funds, but shows separately in the balance-sheet as a liability. Section 112 of the Act provides that in the month of January in every year the Minister of Finance shall pay into the Fund the sum of £43,000, and as the Fund's financial year ends on the 31st January, the Board takes credit only for one-twelfth of this amount, regarding the balance as unearned subsidy. This would be correct accounting practice if the accounts were designed to show the annual profit or loss of the Fund, but it is quite clear that such considerations do not apply in the case of a superannuation fund. If ordinary ride of thumb accounting methods are to be adopted, the Revenue Account should credit only such portion of the employees' contributions as is necessary or estimated to be necessary to cover the current year's risk in respect of the contributors and reserve the balance in order to meet the appropriate pensions as they emerge. To put it another way, the ordinary balance-sheet of a superannuation fund makes no pretensions to show the real contingent liabilities of the Fund in connection with pensions and other benefits, and accordingly no good purpose can be served by understating the funds year after year by this amount of £39,416 13s. 4d. Under the circumstances, the Board is recommended to bring its accounting methods into line with the world-wide practice of financial institutions controlling life assurance and other funds whose deferred liabilities involve contingencies which cannot be measured by ordinary accountancy standards. 10. Income. —On the income side the chief item requiring comment is the Government subsidy. Compared with the annual subsidies reported as necessary in the last actuarial report, the subsidies paid in during the quadrennium exhibit a shortage of £604,833, apart from the loss of interest thereon. The effective rates of interest credited to the Fund during each year of the quadrennium are given below, together with those of the previous four years for the purpose of comparison :— Rate Rate Year. per Cent. Year. per Cent. £ s. d. £ s. d. 1926-27 .. ..6 1 1 1930-31 .. ..6 1 0 1927-28 .. ..6 1 4 1931-32 .. ..6 0 1 1928-29 .. ..5 19 11 1932-33 .. ..5 7 4 1929 T 30 .. .. 519 4 1933-34 .. ..6 0 9 The apparent drop in the yield for the year 1932-33 is due to the fact that the accounts were closed prior to the decision of Government to reimburse the Fund the loss in interest sustained under the provisions of the National Expenditure Adjustment Act, 1932. As the amount accrued (£7,335) is identical with the amount accrued but not paid in or taken credit for in the year 1933-34, it will be seen that the interest-yield over the past eight years has been fairly constant.

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11. Outgo. Retiring-allowances are increasing, and will continue to do so for many years to come. It will be noted that the outgo for benefits during the quadrennium exceeded by about 17 per cent, the total income from contributions, interest, Government subsidy, and other sources. This is a sad commentary on the position of the Fund, for, as pointed out in previous valuation reports, the liabilities are essentially of a deferred nature, and at this stage funds should be increasing rapidlv. Data. 12. The preliminary particulars required for tnis examination have been obtained from cards supplied by the Secretary of the Teachers' Superannuation Board—a separate card being compiled tor each member who was in Service at the valuation date or who had died or withdrawn since the inception of the Fund—and these particulars form the main basis of this investigation and valuation. 13. It is difficult to avoid the conclusion that sooner or later some reconstruction of the Fund is inevitable, and in order to be in a position to report expeditiously on any such proposals for reconstruction I decided to use Powers Machines to punch special cards and tabulate the data in the form required for valuation. The Post and Telegraph Department very willingly placed its Powers Machines at my disposal, and I am indebted to Mr. A. G. Bowater for his enthusiasm in supervising the work and for many helpful suggestions. It is unnecessary to point out that the assembly of the data by means of such machines permits rapid resorting and tabulation in any number of groupings that may be desired, thereby curtailing the time involved in investigations into the cost of making any modifications of the benefits of the Fund either for the whole Service or for certain Departments or for officers ioinineon or after any given date. The Valuation. 14. The main object of an actuarial valuation is to ascertain whether the current funds, together with the present value of the future contributions, will be sufficient to meet the total liabilities. Before the valuation can be carried out it is necessary to make a careful estimate of the various factors on which the payment of the benefits and contributions is dependent. These factors may be briefly summarized as follow :— ' (a) Rate of interest; (b) Mortality-rates of pensioners ; (c) Average salary scales ; (d) Mortality-rates of contributors ; (e) Voluntary-withdrawal rates of contributors ; (/) Retirement-rates of contributors ; (g) Marriage-rates of contributors ; (.h) Probability of a member leaving children under fourteen years of age, and the average number of such children ; (i) Remarriage-rates of members' widows. 15. The rate of interest used in valuing benefits and contributions was 4i per cent as the Fund is State-guaranteed. 16. The mortality-rates adopted for pensioners were those used in the previous valuation and were based on an investigation of the combined experience of the three Government Superannuation Funds (Public Service, Railways, and Teachers) for the period 1919-27. 17. Average salary scales in respect of males and females separately had to be constructed for the year immediately following the valuation date. This presented considerable difficulty, as it was complicated by the salary cuts and the fact that there were two classes of officers, one contributing on hypothetical salaries—i.e., pre-cut salaries as far back in some cases as 1921—and the other on actual salaries. To have constructed average-salary scales based on the heterogeneous contributory salaries and applied to the contributory salary of each contributor as at the Ist February, 1934, the resulting ratios of increase from age to age would have considerably overestimated the pension'liabilities as under normal circumstances, the average officer contributing on actual salary would not rise to'the hypothetical maximum salaries, a,nd pensions are based on salaries during the three years preceding retirement. Even if actual salaries were used to obtain the ratios of increase from age to age, the prospective salaries would have been divorced from realities in view of the fact that a large number of officers would never by normal promotions bridge the gap between their actual salaries and the hypothetical salaries on which they were contributing. The problem would have been simplified had the options to pay on higher salary been exercised, as one would have expected, only by the older officers, or by those who had been at the top of a grade so long that they took a very conservative estimate of the possibilities of future promotion. In actual fact, while only 915 out of a total of 8 901 contributors elected to pay on the pre-cut salaries, this number included contributors from age twenty-three upwards many of whom must, except under very exceptional circumstances, have recovered the amount of the salary cuts by promotion during the remainder of service. The tacit assumption made by each officer electing to contribute on his salary prior to the cuts was that his actual salary would not

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rise to the higher figure prior to retirement (normal or medically unfit), but even a brief glance at the two sets of salaries showed that at the younger ages the disparity between actual and hypothetical salaries was not wide enough to justify the assumption of valuing on the basis that future salary increases would not bridge the gap. It therefore became necessary, not only to separate those contributing on actual and on hypothetical salaries, but also to make two valuations of those contributing on hypothetical salary to make the necessary allowance for the fact that males under age forty-seven and females under age forty-one would, on the average, rise to a higher actual salary than the hypothetical salary on which they were contributing. In making these several valuations it was essential to allow for the fact that all salaries at Ist February, 1934, were automatically increased by 5 per cent, as from Ist April, 1934, and to make some assumption as to an early restoration of portion of the remainder of the salary " cuts." For this purpose I assumed that an immediate all-round increase of 5 per cent, would be forthcoming on Ist February, 1935. Actually, a 7|-per-cent. increase was subsequently granted in August, 1935, and all salary " cuts " were fully restored as from Ist July, 1936. 18. The actual deaths among contributors during the quadrennium were 45 males and 32 females, as against 59 and 34 respectively expected by the tables used in the previous valuation. The lighter mortality during service among male members was in evidence for all age-groups, and was due to some extent to an increase in the number retiring medically unfit. 19. The withdrawals were 274 males and 1,565 females, as against an expectation of 271 and 1,471 respectively. The reduction in the number of females withdrawing was not unexpected in view of the natural hesitation to exchange remunerative employment for marriage during a period of prolonged economic depression. 20. The retirements numbered 200 males and 296 females, as against an expectation of 146 and 227 respectively, the excess being limited to those within ten years of the normal ages of retirement. lam not in a position to say what portion (if any) of this increase in the number of retirements was compulsory, or due to a deliberate use of the Fund to facilitate retrenchment. The number of contributors dropped from 9,614 in 1930 to 8,901 in 1934, while the number of pensioners (exclusive of widows and children) which had increased from 1,003 in 1927 to 1,231 in 1930, grew to no less than 1,542 in 1934. 21. In view of the special influences operating during the quadrennium, I decided to regard the experience as abnormal, and to adopt for valuation purposes future rates of mortality, withdrawal, and retirement based on the period 1919 to 1930 and used in the 1930 valuation. 22. Males and females were valued separately, and details of the Experience Tables adopted and the Life and Service Tables deduced therefrom are given in Tables VI and VII of the Appendix. 23. The factors necessary for the valuation of widows' and children's benefits were built up from population statistics combined with the experience of the Fund itself. Results of Valuation. 24. Section 111 (2) of the Act requires the actuarial 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." The valuation has been made accordingly, and the results are shown in Table IX of the Appendix, but they may be shortly summarized as follow : — £ £ Present value of existing pensions and allowances .. 2,975,900 Present value of prospective benefits .. .. .. .. 5,834,778 Less present value of members'contributions .. .. 1,323,677 4,511,101 Total net liabilities .. .. .. .. .. 7,487,001 Funds in hand .. .. .. .. .. .. 1,003,185 Present value of total liability of State .. .. .. .. 6,483,816 Less present value of present subsidy of £43,000 (if treated as a perpetuity) . . . . .. .. .. .. 955,556 And less present value of State subsidy under section 114 of the Act .. .. .. .. .. .. .. 156,114 Value of future subsidies to be provided for by the State over and above the present subsidy .. .. .. .. .. £5,372,146 25. The above statement shows a total State liability of £6,483,816, as compared with £5,559,202 at the last valuation, giving an increase of £924,614. It should, however, be pointed out that £156,114 of this increase is due to the inclusion of the special widows' and children's subsidy under section 114 of the Act as a permanent liability. In the past this has been treated as a supplementary payment to widows and children, and confusion has at times arisen in endeavouring to reconcile statements made as to the amount of Government subsidies paid to the Fund. The balance of the increase is mainly due to the accumulation at interest of that part of the State's liability which is unprovided for, and to the excessive number of retirements of comparatively young teachers.

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26. As regards the first-mentioned source of valuation loss, it is scarcely necessary to point out that if a fund is in deficiency at one valuation, the amount of tlie deficiency at the succeeding valuation will, in the absence of profit and loss from other sources, increase at compound interest, since, in addition to the shortage in capital, the Fund is deprived of the interest which that capital would have earned during the valuation period. Reference has been made in previous valuation reports to the serious drain on the Fund due to early retirements from causes other than medical unfitness. 27. The importance of the ascertainment of the state of the Fund in the form given in paragraph 24 lies in the fact that the deficiency to be made good by the State —viz., £6,483,816 —is equivalent to an annual interest income (at 4J per cent.) of £291,772. It follows that if any less annual sum than £291,772 is paid in by the State as subsidy the total deficiency will increase, and the subsidy must accordingly by way of compensation rise later on to a much higher figure than £291,772 per annum in respect of present contributors alone. If, however, any annual amount in excess of £291,772 is paid in, the Fund would, in respect of present members, attain solvency within a definite period of time. It should be clearly understood that this amount of £291,772 does not cease with the lifetime of the present members but is a perpetuity. Furthermore, it does not include any subsidy to iīew entrants. Ascertainment of State Subsidy. 28. The Act, however, does not provide that the subsidy is to be determined from the foregoing actuarial ascertainment required by section 111 (2). The same section directs the Actuary to show in his report " the probable annual sums required by the Fund to provide the retiring and other allowances falling due within the ensuing three years without aflecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." As the contributions are insufficient to provide the full benefits for service after joining the Fund, my interpretation of the principle underlying the section is that the State shall postpone till it emerges the liability 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. I estimate the pensions falling due during the financial years 1934-35, 1935-36, and 1936-37, the amounts provided by the contributions, and the subsidies payable on the basis indicated by the Act, to be as follow : — 1934-35. 1935-36. 1936-37. Estimated pensions .. .. .. .. .. 304,283 308,197 313,723 Amount provided by contributions .. .. .. .. 107,118 110,354 114,306 Amount due to be paid by the State in respect of the three years mentioned (but see also next paragraph) .. .. .. 197,165 197,843 199,417 29. The above figures would give for the years 1934-35, 1935-36, and 1936-37 an average subsidy of approximately £198,000 per annum, or £155,000 more per annum than the total of the present statutory subsidy of £43,000. The following considerations, however, must be taken into account: — (a) The actuarial recommendations made in the past in pursuance of the Act have not been fully carried out, the actual subsidy payments' into the Fund to the 31st January, 1934, as will be seen from Table X of the Appendix, being short by £1,340,084 of the amounts recommended. After making allowance for interest, I consider that at least £66,000 per annum will require to be added to the future subsidies on this account. (b) The State subsidy should also provide year by year the amount charged to the Superannuation Fund in administration expenses, less possibly the amount of investment commission which might be regarded as a deduction from interest. The payment of expenses from the Fund is a definite departure from the original scope of the superannuation scheme, and my interpretation of section 111 (2) of the Act is that expenses amounting to, say, £2,000 per annum should form part of the subsidy. 30. I have, therefore, to report that in accordance with the system prescribed by the Act the annual subsidy required for each year of the period ending 31st January, 1937, is as follows : — £ Subsidy now being paid by State .. .. .. .. •• 43,000 Further annual subsidy required — £ Paragraph 29 .. .. .. .. .. •• 155,000 Paragraph 29 (a) .. .. .. .. .. 66,000 Paragraph 29 (6) .. .. .. .. .. 2,000 223,000 Annual subsidy required for the years 1934-35, 1935-36, and 1936-37 . . £266,000 31. I have indicated above that section 111 of the Act specifically sets out that an Actuary shall be appointed by the Governor-General to furnish " a report which shall be so prepared as to show . . . the probable annual sums required by the Fund to provide the retiring and other

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allowances falling due within the ensuing three years without affecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." Section 112 (1) reads, "In the month of January in every year the Minister of Finance shall pay into the Fund and out of the Consolidated Fund, without further appropriation than this Act, the sum of forty-three thousand pounds, together with such further amount (if any) as is deemed by the Governor-General in Council, in accordance with the aforesaid report of the Actuary, to be required to meet the charges on the Fund during the ensuing year." The only interpretation I can place on these two sections is that the responsibility of determining the State's subsidy devolves on the Actuary, and unless the Governor-General in Council disagrees with the figures in the actuarial report, it is mandatory on the Minister of Finance to make the necessary payments. Up to 1919 the requirements of the Act as to Government subsidy were more or less complied with, the Act being duly amended from time to time to give effect to the actuarial recommendations, although payment of the increased subsidy was on the average two years late, and no extra payment was made during the war period. From 1919 onwards, however, no action has been taken to give effect to any of the actuarial reports submitted, and for all practical purposes section 112 (1) of the Public Service Superannuation Act is a dead letter. The valuation of the Teachers' Superannuation Fund is a highly specialized task, additional staff and calculating-machines have to be borrowed from other Departments, and it is discouraging for the Actuary to know in advance that the time and thought spent in dealing with the problems which arise, together with the months of work of the staff, are, for all practical purposes, wasted effort. If Government considers the annual subsidy too big a price to pay for the benefits of a Teachers' Superannuation Fund, it would be better to face up to the position and reconstruct the Fund in accordance with the State's ability to pay. Such a procedure would at least have the merit of letting teachers know where they stand, and of enabling them, if desired, to make alternative provision for their old age. 32. It is only one step from the continued refusal of the State to honour its statutory obligations to pensioners to discontinue the payment of any subsidy whatever, and, although such a contingency may appear remote, it is interesting and instructive to examine the resulting position of the Fund. For this purpose, it is only necessary to submit the following figures as at 31st January, 1934 £ Amount of accumulated funds .. .. .. .. .. 1,003,185 Amount of contributions paid by contributors still in the Service . . 1,257,724 Capital value of pensions and allowances actually entered upon .. 2,975,900 It will be seen that, if the Fund were put into liquidation on the basis of treating existing pensioners, widows, &c., as preference shareholders with a prior right of having their claims satisfied before the existing contributors shared in the assets, the former would receive only 33-71 per cent. (6s. 9d. in the pound) of their pensions or allowances, thus suffering a cut of 66-29 per cent. (13s. 3d. in the pound), while contributors still in the Service would be unable to recover any contributions paid into the Fund. If, on the other hand, the Fund were liquidated on the basis of terminating all pensions and of dividing the accumulated funds amongst the existing contributors, the total capital available would pay them only 79-76 per cent. (15s. lid. in the pound) of their past contributions (without interest) equivalent to the forfeiture of 20-24 per cent. (4s. Id. in the pound). How far the Fund has retrogressed will be seen by comparing the above position on hypothetical liquidation with similar figures taken out in connection with the last statutory valuation, and shown on page 25 of the report of the parliamentary Committee set up in 1932 to consider the proposed Government Superannuation Funds Bill. The figures are important if for no other reason than to show why the Fund should receive an adequate subsidy in the future. 33. As this will probably be the last occasion on which I shall have the privilege of making an actuarial report on the Teachers' Superannuation Fund, I submit in Table VIII of the Appendix a consolidated Revenue Account of the Fund since its inception. I have also prepared the following concise summary of the position of the Fund at the successive dates of actuarial valuation. It will be seen that, for illustrative purposes, the accumulated funds have been regarded as applicable to a hypothetical Pensioners' Account and the balance to a Contributors' Account. This strips the problem of all technicalities and throws the position of the Fund into clear perspective. The table should convince any thoughtful person that reconstruction is urgently needed, unless Government is able and willing to shoulder the enormous liability shown therein.

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TEACHERS' SUPERANNUATION FUND.

8

I O0(-0> (DO) ODW fflO <35 i —i 1-1 t- ® i>- as »o 05 „ s b 0O1ON 03O1 i —1 co lO co t- CN! -m CO ® 53033 ~ ~ ~ - <> ~ 2; <S , CO TO OS H°0 WN -# 1-1 t- Jo <33 1-1 JJJH " -g 'g t-h 1-1 t- ® -# i>- 10 >1 22SJ 2 2 c§ 2- OS rj-f 00 Co 00 ® © W to K3 1OO1 OS rH rH 1~1 1~H >0 tO a) ® -3 00 HU) OS °0 OS ® <32® Co "3 S5 •feists— CO 10 N 1MN to"* t- £*< Hto O?0 "S j3, G 10 «N rH 00 CO 1-1 t- 1000 t- !-l rH co^ £ J" 02 .2 rH 10" «<S to <0 E- 1~1 to" Oi o ?0 Sj" 1-1 SS -—■ ©rill t- "O t- OS toco CO® rH 2 § 00 0 t- c«j to os coos *® s .2 § E H iH rH cm" CO CO -tH A gSB fl 1 l&!°3 0) t^t^COCOC<lr-H^rH _3 O tH rH lO rH iO t""" rH <0 fl -p -g (MO co o go co m - g* S :2 3 co" : -# • 10" • to" • co ■ as ■ 00 ■ 9. T3 O ts o ci o go Qo io n t- c\> ascs) o *£> i£S (N »-h c<3 co 00 H CO CO CO CO t— Oi (M t— C\i bn t-" 00 SO iC<sT iC CT t- *-H QT J> _ >ow 00 °o as® goo g® I - - <Ā$ c3 03 03 rO .O rD rO rO r& §-. jb«- Jr« %» j^* ocjc) C)Q qq qci cj Q q q P S cq to 00 C\t (M® "OS? 1-nJO ® ® tSS 2 r-icocvj lOtXi to 50 IOO) Hits 00 N 5 +a 2 I T CM rH OS rH ® C- l O tO OS rH t- l -"5 HHJ rS § S T3 S-irt iO t=T Hto" to"io CO CO 10" CO § ■3 oi S 10 toN CM"* 1003 cow os'-h OS rHCM'-l m>H OOCO OW rH 1-1 O^ «3 Q t(-H 0 -™ „, rf, (M -5« <M COOS <35 <0 H<M rJH c<3 O® S S. S os ia to tNto -#cq Tf os t- co oc<j oos ,3 S S 3 ME 1 "" COCO ION COOS (MOO <33® H to CO ® toco toco O co coco io<M „>fto.5 00<35>0 tow LOO) [-1-1 <35<M t- 00 !•* J*S 6BO VS J ttl ri <M h -#1-1 tOCXi <M>0 t-lt5 CM>-0 <35® n" H ctT cm" S3 '$ O © -g .2 s P. H3 'm d H <1 GO 10 TdH 1—1 O ZD 10 10 w n _, IOO ZD 00 O O rH rH O 00 I> ZD 10 I- cq lO^CD^ V *3,-2 O ZD ' -rH - CO - CO - O • o- « Cō h5 (M t- r—I CO CM CO O* rH cq CO CQ t- <M 00 r-H r—I tjD iO (N O iO « —it—OO ® d CO C5 rH as lO 00 rH lO jS '3 § S (N t- • c-i ■ <35 - -#" • to - oo - asK S 5 ffj t-H fftl tH lO rH to 1 —I CO SI rHrH^lN cō ® 2 Oi^lOCOOCOrHCN t-co 10 co CO O co -rH o H CO • - 10 • GO - O • CM - 10 • § 'I g A <0 HPM ■ * « 0 s o^ 1 0 s o 5 o 1 " o CO ® CO 153 C5 S3 s S§ S§ t- § o§ as § <n § cq§ cog to § rH r—I rH (J5 C5^, O \ O \ O r-HO r—IO rHO I O <N(M S <Mg <Mg \§ \ g \g \g r —I H s r-H>-N t—I Kj H S H S rH rH rH r—I rH rH rH r—( COCO CO CO CO CO CO CO

E.—Ba.

34. The causes of the present large deficiency in the Fund may briefly be summarized as follows :— (a) The accumulation at interest of the unredeemed amount of the initial deficiency caused by the gift, in respect of service prior to the inception of the Fund, of free pensions for each year of such " back service " at the same rate as for future contributory service. The Fund commenced operations with an initial deficiency estimated to be in the neighbourhood of £800,000. It is important to bear in mind, however, that this original estimate requires to be increased in the same ratio as actual salary-levels on retirement bear to the average retiring-salaries as estimated when the scheme was established. The State definitely incurred this liability in making a gift of that portion of the pension based on service prior to the establishment of the Fund, and the soundest plan would have been to take steps to pay the full capital sum into the Fund, or alternatively to provide for its redemption within a reasonable period of from twenty to thirty years, and to make a small additional annual subsidy to assist the contributions of new entrants. (b) The failure of successive Government since 1919 to honour their statutory obligations as to subsidy. The amount of the statutory annual subsidy has no relation to the actuarial position of the Fund, but is merely a proportion, actuarially calculated, of the pensions and allowances actually emerging. Pensions are, in effect, divided into two parts : — (i) That portion provided by the contributors : (ii) The balance which is to be met by the State. It will be seen, therefore, that the principle underlying the Act is that members are to contribute upon the basis of paying their share of the liabilities during service, while the State is to defer payment of its share until officers are retired. It does not appear to be sufficiently appreciated that the longer a financial liability is deferred the greater is the amount of money that will ultimately have to be provided by reason of the operation of interest. It has also to be remembered that, under the plan of basing subsidies on pensions, the annual subsidies themselves tend to increase rapidly for many years by reason of the increasing number of new pensioners annually coming on to the Fund. Reference to Table X of the Appendix shows a shortage at 31st January, 1934, of £1,340,084 (exclusive of interest) in the subsidies actually paid by the State as compared with those prescribed by the Act. (c) The burden thrown on the Fund as the result of the practice followed, particularly from 1922 onwards, of compulsorily retiring men with forty years' service irrespective of their attained ages or their own wishes. (d) The great increase in pension liability due to the effect of the war on salary-levels. At the most a contributor would contribute on his increased salary only for his future service, whereas he would obtain the same pension benefit as if he had been in receipt of such a salary for the whole period of his service. Some idea of the increased pension liability can be obtained from the fact that between 1913 and 1927 the average annual salary of teachers aged fifty and over increased by £203 in respect of males and £161 in respect of females. (e) Additional concessions granted to contributors from time to time, as for example, the options to contribute on salaries prior to the cuts of 1921-22, 1931, and 1932, or to accept refunds of contributions on " excess " payments. (/) Inadequate contribution scales, particularly in respect of female teachers. General Remarks. 35. Extra Remuneration not to count as Salary for Superannuation Purposes.—ln the Teachers' Superannuation Fund officers undertaking duties additional to those attached to the position ordinarily held are allowed to contribute on such extra remuneration, but such remuneration counts as salary for pension purposes only if it is earned in the three years preceding retirement. This means that any teacher who is deprived of earning such additional remuneration during the last three years of service would receive no benefit for any contributions paid on such remuneration for possibly the bulk of his service, whereas another teacher who only received such additional remuneration during the last three years of service would receive the same pension as if he had contributed on such remuneration for the whole period of his service. My own opinion is that any payment for duties other than those attached to the position ordinarily held by the teacher should not be regarded as salary for the purposes of superannuation. If any legislative amendments are made in this direction, it would appear desirable to provide for regulations setting out what allowances were not to be regarded as salary or payment for duties other than those attached to the position ordinarily held by the teacher. 36. Unemployed Teachers. — Section 97 of the Public Service Superannuation Act provides that a teacher is not retired from the Service by reason of unemployment unless such unemployment extends over twelve months, and there is a further provision that the Superannuation Board may grant an extension of such period of unemployment, the break in the service to count for superannuation purposes. I am of opinion that under present conditions of employment in the teaching service it would be better to provide that no such break in service be allowed to count for superannuation purposes, and, of course, contributions would not be collected in respect of such break. It is more in keeping with the general idea of superannuation that no contributor should be granted a pension in respect of any period for which no service has been given to the State. 2—E. BA.

9

E.— BA.

37. Medically Unfit Pensions.—This is probably one of the most difficult problems in the administration of any Superannuation Fund. On the one hand, some teachers may be classed " medically unfit " although they are quite competent to undertake work of a less exacting nature than the particular work they have been performing, while, on the other hand, some teachers totally unfit to render efficient service in any occupation at all may not fall within the definition of " medically unfit " as interpreted by the Superannuation Fund in accordance with statute. It seems advisable to consider the desirability of creating a special class of " medically unfit for duty " officers, grading each such officer as 100 per cent., 90 per cent., &c., unfit to carry on his occupation. An officer graded 100 per cent, medically unfit would, of course, receive a full pension based on length of service, an officer graded 50 per cent, medically unfit for duty might be allowed a pension halfway between a " length of service " pension and an " actuarial " pension, and all other grades be dealt with similarly. 38. Provision for Joint lAje and Survivor Pensions.—There have been from time to time suggestions to increase the widows' pension now standing at £31 per annum. The cost of making any material increase is too high to warrant any recommendation that it should be provided out of the Consolidated Fund, and, moreover, it may very well be argued that it is no duty of the State as employer to relieve the teacher of his own obligations to provide for his widow by life assurance or other means. On the other hand, there would be objections raised to any suggestion that all male teachers should be asked to pay any extra contribution for an increased widows' allowance, partly because of the high cost of such a benefit and partly because in the cases where a pensioner or contributor died as a bachelor or a widower he would have been paying a substantial contribution for no actual benefit. It would be possible, however, to meet the case of any teacher who would prefer to accept a smaller retiring-allowance on the understanding that his widow's allowance was increased by making provision in the Act for such an option on terms that would involve no increased strain on the Fund. One plan would be to allow such contributors the option to exchange their retirement pensions for a joint-life and survivor pension payable so long as either the husband or wife were alive. Alternatively another rate of pension could be payable to the contributor on the basis of a reduction on his death to, say, half-rates for his widow. The Fund's finances could be adequately protected, by providing for such an option to be exercised by the contributor not less than five years prior to the date of retirement, this to obviate any adverse selection against the Fund by the contributor. In order to meet the case of present contributors who are now within five years of retirement, or even of any existing pensioners, provision might also be made for them to have an option to exchange their pensions for joint-life and survivor pensions within a specified period, say, six months from the date of the passing of the amendment, subject to the production of such evidence of medical fitness as is determined by the Superannuation Board. 39. Removal of Pension Limitation of £300 per Annum. —The National Expenditure Commission of 1932 made a strong recommendation for the removal of the arbitrary pension limitation of £300 per annum in respect of officers joining the Service after the 24th December, 1909, so as to bring them into line with officers joining the Service before that date. The injustice of compelling officers to contribute to a Fund and at the same time limiting them to a pension of £300 irrespective of the value of their contributions should be too obvious to require comment. A University Professor or a Medical Officer appointed to the Service at a salary remaining practically stationary during his whole service may pay three or four times as much as another teacher with similar service, but he gets no credit for it. In this connection it may not be out of place to point out that the arbitrary pension limitation of £300 was never taken into account in the original estimates of cost furnished before the schemes were established, nor was it included as part of the original Act, being introduced some two years later for reasons I have never been able to discover. If the matter were not so serious in its broader aspects, one might be tempted to enlarge, on the Gilbertian touch of an employer commencing a superannuation scheme for his employees and giving away, inversely to their future value to him, an itioreased pension benefit —(i.e., 97| per cent., 75 per cent., 50 per cent., and 25 per cent, of pension benefit to employees with respectively one, ten, twenty, or thirty years of remaining service—without imposing any restrictions as to the maximum amount of pension granted, while at the same time asking new employees to devote themselves to his service, and to contribute for the whole period of their employment to a fund offering them an arbitrary maximum pension, that is equivalent in the case of the higher-paid officers to a pension at a rate for each year of service decreasing as the length of service increases. If any limitation had to be applied at all in a State scheme, it would more readily have been understood had it applied only in respect of those officers who had long years of back service for which they made no contribution to the Fund. As the National Expenditure Commission has pointed out, each Actuary who has had to report on the Government Superannuation Funds has adversely commented on the arbitrary pension limitation. There is, however, a danger in connection with this £300 arbitrary limit, that too much stress on the grave injustice done to the higher-paid officers may tend to obscure the fundamental reasons for establishing a staff superannuation scheme —namely, to induce men of ability to join and continue in the Service, and to offer an adequate retiring-allowance to those who rise to high positions as the result of outstanding merit.

10

E—B a

A superannuation scheme is not established by an employer —whether a Government or a private firm —from philanthropic motives, but rather from motives of enlightened self-interest. The State, in common with any employer of labour, does not remunerate its teachers on philanthropic grounds nor on the basis of levelling-down all salaries to a uniform amount irrespective of the class of work performed, and it is unreasonable to suppose that it has in mind an intention to depart suddenly from sound business principles just when some of its employees reach old age. The object in stressing this aspect of the employer's motive is that once the principle is admitted that the establishment of a superannuation scheme is from an enlightened self-interest, we are infallibly led to a certain line of reasoning regarding the relative benefits a superannuation fund should pay and the way the employer's subsidy should be allocated. The opinion of any competent critic on the Teacher's Superannuation Fund with its maximum pension of £300 per annum, especially when considered side by side with the minimum pension of £300 provided by the Superannuation Fund of one of the old established New Zealand banks would not only be unflattering to the State but would also bring out prominently that those responsible for the 1909 amendment lost sight of the elementary principles of a staff superannuation scheme. Compared with the generally accepted idea in commercial pension funds that merit should be rewarded and an adequate subsidy paid on the contributions of all employees, the State is actually penalizing its best teachers, present and future, and in effect is allowing the Superannuation Fund to confiscate portion of their contributions and interest accretions. 40. In conclusion, I have to acknowledge the assistance of the small but efficient staff engaged in carrying out the heavy work of the valuation. C. Gostelow, Fellow of the Institute of Actuaries (London), Government Actuary.

11

E—Ba.

APPENDIX.

TABLE I. The Benefits and Contributions provided for by the Act. (These benefits are slightly modified 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.) Tie contributions vary according to the age at tie time when tie first contribution becomes payable, and are as follows : — Age 30 and under . . .. ~ 5 per cent, of pay. Over 30 and not exceeding 35 6 I ?) j> "±0 • • • • . . 7 ~ i »40 „ 45 8 I „45 „ 50 9 I „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-sixtiett of yearly salary for eaci year's service, witi a limit of forty-sixtietis (two-thirds) of salary. Maximum pension for entrants after tie 24th December, 1909, £300. (2) Or tie option, in lieu thereof, of a return of total contributions. Note.—Tie Board may, witi tie approval of tie Minister of Education, retire contributors on pension in tie following cases :— (a) Wiere tie age of a male contributor is not less tian 60, or of a fp.ma.lp. contributor not less tian 50. (b) Wiere 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 tie Minister of Education, impose upon tie retiring contributor suci terms and conditions as to payments into tie fund or otierwise as the Board thinks fit.) 11. On Retirement before Pension Age (on the Grounds of being Medically Unfit for Benefits .. Future Duty). (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. 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 : — (а) £31 yearly during widowhood ; or (б) 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.) J3) Leaving children: 10s. 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.)

12

E. —Ba.

TABLE II. Statement of Progress of Active Membership.

Particulars of Discontinuance of Active Membership.

13

New Members. Increase by Promotion. Discontinued. Total in Force at End of Year. Year ' Annual Annual Annual Annual Number. Salaries. Contribu- Salaries. Contribu- Number. Salaries. Contribu- Number. Salaries. Contributions. ! tions. tions. tions. £ £ £ £ £ £ £ £ 1908-10 .. 3,968 571,694 39,634 106,582 7,130 721 130,344 9,479 3,247 547,932 37,285 1911-15 .. 2,371 317,039 17,199 188,951 10,976 1,174 193,900 12,665 4,444 860,022 52,795 1916-20 .. 2,438 350,721 18,937 613,788 35,706 1,708 325,331 20,038 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 1922-26 .. 3,887 644,399 34,976 244,098 12,821 1,791 454,089 27,84-8 7,968 2,105,451 116,405 1926-27 .. 967 160,963 8,721 129,074 7,009 559 143,641 8,334 8,376 2,251,847 123,801 1927-28 .. 841 131,745 6,997 83,058 4,247 532 139,632 8,062 8,685 2,327,018 126,983 1928-29 .. 1,160 161,466 8,318 97,275 4,885 559 146,406 8,487 9,286 2,439,353 131,699 1929-30* .. 901 117,497 6,391 122,031 6,749 571 148,741 8,531 9,616 2,530,140 136,308 1930-31 .. 853 111,309 6,228 115,863 6,062 560 140,948 8,006 9,909 2,616,364 140,592 1931-32 .. 628 72,047 3,931 -140,244 -7,401 573 145,820 8,482 9,964 2,402,347 128,640 1932-33 .. 119 25,700 1,634 -119,795 -6,462 728 179,997 10,332 9,355 2,128,255 113,480 1933-34 .. 99 18,597 1,114 57,077 3,031 551 104,284 5,782 8,903 2,099,645 111,843 Totals .. 19,280 2,837,320 162,484 1,606,906 90,853 10,377 2,344,581 141,494

By Pensions. By Rv Withdrawal Transfers By Death. IKhSl to Total discontinued, or dismissal. ordinary (Age Extended M edieallv Unfit 0ther or Service). Provisions. Mecllcally Untlt - Funds. Year. . _ . _ _ % . S-+3 2 * [a . p S3 e< § £? g 8 SS § §* fe § § 8 ā § 3 & g & 8 8 S.S s| •O «dS 9-S p ■« a S P .3 3 p .2 3 B «„8 oS jS .«-.■H P -««a .3 3 I § § .§ i| g § § .§ I ii I |g I § s .§ II I § § i I § § ! izj a 1 | M s § a fc a | pms g S «I S -5 £ £ £ £ £ £ £ £ £ £ 1906-10 .. 51 1,737 1,174 462 6,762 167 11,816 10 938 29 422 1,913 2 30 721 8,951 15,841 1911-15 .. 84 5,100 932 807 23,798 175 15,808 48 7,326 51 .. 4,457 9 1,009 1,174 29,907 28,523 1916-20 .. 16616,214 1,956 1,234 47.399 208 27,744 22 3,076 60 .. 7,303 18 1,059 1,708 64,672 40,079 1921 .. 14 2,105 206 271 13,604 48 9,170 4 527 11 .. 1,505 2 95 350 15,804 11,408 1922-26 .. 7412,424 1,823 1,325 61,551 295 60,129 46 7,960 351,106 6,866 16 788 1,791 75,869 76,778 1926-27 .. 22 3,236 875 440 21,9)0 80 20,091 6 1,548 9 711 1,536 2 733 559 26,590 24,050 1927-28 .. 13 3,194 922 407 22,546 97 21,925 6 1,129 5 .. 797 4 336 532 26,076 24,773 1928-29 .. 18 4,119 690 428 22,639 92 20,605 2 172 16 .. 2,043 3 23 559 26,781 23,510 1929-30 .. 29 5,701 922 439 24,168 80 17,842 7 1,751 15 .. 1,213 6 .. 576 29,869 21,728 1930-31 .. 20 3,227 1,066 447 25,986 78 17,632 2 487 11 .. 1,693 2 92 560 29,305 20,878 1931-32 .. 23 4,447 984 423 26,165 101 35,677 10 1,061 15 .. 1,937 1 16 573 30,628 39,659 1932-33 .. 14 4,228 574 507 29,207 159 38,048 28 2,860 18 .. 3,133 2 43 728 33,478 44,615 1933-34 .. 20 2,973 1,279 465 27,768 44 8,193 6 888 10 .. 1,523 6 889 551 31,630 11,883 Adjustments .. .. +4788 - 5 .. .. +8,218 .. +383 .. .. +1450 .. .. - 5 .. +14839 Totals .. 54868,70518,191 7,650 353,5031624 312,898197 30,106 285 2,239 37,369 73 5,11310,377 429,560 398,564 This table compiled from statement (3) of annual reports. * 1929-30 figures adjusted.

E.—BA.

TABLE III. Statement of Progress of Pensions.*

14

Attainment of PenstonAge or Length of Extended Pensions. Retired Medically Unfit. Granted. X?lo+v! y In Force. Granted. In Force. Granted. Death or In Force. Year. JJeatn ' JJeatn. Expiry. d fed® d & d & d & d & d & d £ d rQ .2 rO 2 .2 rO .2 rO .2 rQ .2 rQ .2 - 0 2 r 0 .2 a saga ā aassagagagag 3 S SoP o 3 S 3 B 3 S 3 a> 3 S 3 S P-i S PH P-i gp-rfepnizip-, £ £ £ £££ £ £ £ 1906-10 .. 167 11,816 19 1,317 148 10,499 10 938 .. .. 10 938 29 1,913 8 505 21 1,408 1911-15 .. 175 15,808 35 2,726 288 23,581 48 7,326 .. .. 58 8,264 51 4,457 11 1.063 61 4,802 1916-20 .. 208 27,744 59 5,056 437 46,269 22 3,076 4 854 76 10,486 60 7,304 22 2,203 99 9,903 1921 .. 48 9,170 10 i 1,046 475 54,393 4 527 2 315 78 10,698 11 1,505 8 760102 10,648 1922-26 .. 293 65,329 63 ! 7,708 705 112,014 45 8,362 14 2,287109 16,773 39 7,689 15 2,252126 16,085 1926-27 .. 82 23,109 19 2,897 768 132,226 4 1,529 3 379110 17,923 9 2.162 10 1,528125 16,719 1927-28 .. 97 21,925 22 4,597 843 149,554 6 1,129 7 1,548109 17,504 5 797 2' 311 128 17,205 1928-29 .. 92 20,615 24 4,190 911 165,979 2 171 4 425107 17,250 16 2,056 5 826139 18,435 1929-30 .. 80 17,842 18 3,125 973 180,696 7 1,751 3 353111 18,648 15 1,213 7 882147 18,766 1930-31 .. 75 17,631 33 5,6161015 192,711 2 487 10 1,164103 17,971 14 1,693 6 523155 19,936 1931-32 .. 101 35,677 28 6,5161088 221,871 10 1,060 5 583108 18,448 15 1,937 4 766166 21,107 1932-33 .. 159 38,048 26 4,4631221 243,816 28 2,860 3 481 133 20,827 18 3,133 8 1,473176 22,767 1933-34 .. 44 8,193 35 6,2301230 245,779 6 888 3 445136 21,270 10 1,523 10 1,832176 22,457 Adjustments .. —11,641 .. .. +2 .. +2 .. .. .. —1 Totals.. 1621301,266 391 55,487 .. .. 194 30,106 58 8,836 .. .. 292 37,381 liejl4,924 .. Death of Contributor : Family Pension. Total Pensions. Year Granted. V( or In Force. Granted. Void. In Force. Pension. Pension. Pension. Pension. Pension. Pension. I £ £ £ £ £ £ 1906-10 .. .. 105 1,613 14 197 91 1,416 311 16,280 41 2,019 270 14,261 1911-15 .. .. 106 1,618 49 682 148 2,352 380 29,209 95 4,471 555 38,999 1916-20 .. .. 151 2,278 75 1,080 224 3,550 441 40,402 160 9,193 836 70,208 1921 .. .. 12 206 10 140 226 3,616 75 11,408 30 2,261 881 79,355 1922-26 .. .. 100 5,164 69 1,230 257 7.550 477 86,545 161 13,478 1,197 152,422 1926-27 .. .. 30 875 17 477 270 7,948 125 27,675 49 5,2S1 1,273 174,816 1927-28 .. .. 32 922 18 498 284 8,372 140 24,773 49 6,954 1,364 192,635 1928-29 .. .. 23 668 20 550 287 8,490 133 23,510 53 5,991 1,444 210,154 1929-30 .. .. 32 922 20 555 299 8,857 134 21,728 48 4,915 1,530 226,967 1930-31 .. .. 36 1,066 26 731 309 9,192 127 20,877 75 8,034 1,582 239,810 1931-32 .. .. 34 984 28 763 315 9,413 160 39,658 65 8,628 1,677 270,840 1932-33 .. .. 19 574 22 612 312 9,375 224 44,614 59 7,029 1,842 296,785 1933-34 .. .. 44 1,279 17 492 339 10,162 104 11,883 65 9,000 1,881 299,668 Adjustments .. .. .. . . .. .. . • ■ • —11,640 Totals .. .. 724 18,169 385 8,007 .. .. 2,831 386,922 950 87,254 * This table compiled from statement (4) of annual reports.

E.— BA.

TABLE IV. Classification of Pensions granted, showing the Ages at which they were granted, for Period from 1st February, 1930, to 31st January, 1934.*

15

.,. . . .. . Widows and Attainment of Pension Age Retired Medically Unfit Children T t , ° ( e Se g cHon 75T V1Ce (Section 77). (Sections 85 and 10tai ' Age at which Pensions • — ; ~ granted. Number. Number. Ss ° g Number. Amount of Amount of -5 a *33 ; Amount of Pension. ■ Pension. | o g , Pension. M. F. M. F. fc 1 JS M. F. Total. _ I 1 _ £ s. d. £ s. d. £ £ s. d. 88 .... . .... .. 1 31 I I 31 0 0 85 .. ... .. 1 31 .. 1 1 31 0 0 84 .... . .... •• 1 31 II 31 0 0 82 . . .... .. 1 31 11 31 0 0 81 .... .. .... •• 1 31 1 1 31 0 0 79 . . .... .. 1 31 11 31 0 0 77 .. .. 2 62 .. 2 2 62 0 0 76 .. .... .. 2 62 2 2 62 0 0 75 .. 1 300 0 0 .. .. •• 1 31 1 1 2 331 0 0 74 . . .. 2 62 .. 2 2 62 0 0 73 .. .... .. 5 155 5 5 155 0 0 72 I .. .... .. 1 31 1 1 31 0 0 71 .. 1 170 3 0 •• 3 93 1 3 4 263 3 0 70 .. .. .... . . 2 62 2 2 62 0 0 69 .. .... . . 7 217 7 7 217 0 0 68 .. 2 274 10 0 .... .. 3 93 2 3 5 367 10 0 67 .. 2 1 974 19 0 .. 3 93 2 4 6 1,067 19 0 66 .. 7 2 1,668 5 0.... .. 2 62 7 4 11 1,730 5 0 65 .. 18 1 4,114 2 0.... ■■ 3 93 18 4 22 4,207 2 0 64 .. 9 1 2,478 10 0 .. •• 5 155 9 6 15 2,633 10 0 63 .. .. 9 .. 2,918 11 0 1 •• 242 4 0 4 124 10 4 14 3,284 15 0 62 .. .. 12 .. 3,927 17 0 1 .. 117 0 0 1 31 13 1 14 4,075 17 0 61 .. 18 5 8,084 16 0 2 .. 578 2 0 3 93 20 8 28 8,755 18 0 60 .. 12 14 6,032 9 0 1.. 263 5 0 3 93 13 17 30 6,388 14 0 59 .. 14 12 6,344 3 0.... •• 1 31 14 13 27 6,375 3 0 58 .. 20 11 9,165 9 0 1 .. 225 13 0 1 31 21 12 33 9,422 2 0 57 .. .. 18 9 7,178 8 0 2 .. 563 17 0 3 93 20 12 32 7,835 5 0 56 .. 19 17 9,227 10 0 .. .. •• 1 31 19 18 37 9,258 10 0 55 .. 4 63 9,966 10 0 3.. 972 15 0 .. 7 63 70 10,939 5 0 54 .. .. .. 15 2,622 6 0 2 1 566 8 0 3 93 2 19 21 3,281 14 0 53 .. .. .. 18 2,813 11 0 2 2 742 12 0 4 124 2 24 26 3,680 3 0 52 .. .. .. 19 3,645 13 0 2 .. 532 7 0 3 93 2 22 24 4,271 0 0 51 .. 1 17 3,264 7 0 1 2 335 14 0 .. 2 19 21 3,600 1 0 50 .. .. .. 11 1,576 5 0 1 1 334 14 0 3 93 1 15 16 2,003 19 0 49 .. .. .. 13 2,160 16 0 .. 2 241 17 0 2 62 17 17 2,464 13 0 48 .. .. .. 12 1,775 11 0 2 .. 227 3 0 .. 2 12 14 2,002 14 0 47 .. .. .. 7 1,171 18 0 2 2 442 10 0 .. 2 9 11 1,614 8 0 46 .. .. .. 9 1,500 7 0 1 1 252 12 0 1 31 1 11 12 1,783 19 0 45 .. 1 2 456 18 0 .. 1 2 3 456 18 0 44 .. .... .. 1 31 1 1 31 0 0 43 .. .. .. 1 138 10 0 .. 4 333 10 0 .. .. .. 5 5 472 0 0 42 .. 2 267 4 0 .. .. 2 2 267 4 0 40 .. ..2 153 II 0 .. .. 2 2 153 11 0 39 .. .. .. 1 50 6 0 .. .. 1 1 50 6 0 38 .. ..I 133 8 0 1 31 2 2 164 8 0 37 .. 1 46 0 0 2 62 3 3 108 0 0 36 .. .... .. 1 31 1 1 31 0 0 35 .. .... 1 31 1 1 31 0 0 34 .. 1 .. 31 9 0 .. 1 1 31 9 0 33 .... .. .... .. 1 31 1 1 3100 32 . . 1 29 19 0 .. .. 1 1 29 19 0 31 . . .... ■ • 30 .. .... • . 29 .. ..2 55 7 0 • 2 2 55 7 0 28 .... . . .... .. 1 31 1 1 31 0 0 27 .. 1 1 58 0 0 .. 1 1 2 58 0 0 26 .. .. .... .. I .. .. 25 .. 1 .. 17 9 0 | .. .. 1 1 17 9 0 24 I .. .. : 23 .. 1 .. . . .. . • • • 1 31 1 1 31 0 0 14 .... .. .... .. 1 26 f 26 0 0 13 .. .... .. 5 130 130 0 0 12 .... .. .... .. 2 52 52 0 0 11 .... .. .... .. 3 78 78 0 0 10 .. .... . . 5 130 130 0 0 9 .... .. .... .. 4 104 104 0 0 8 .... .. .... .. 1 26 26 0 0 7 . .. .. .. .... .. 2 52 j* 22 22 44 52 0 0 6 .... .. .... .. 6 156 156 0 0 5 .. .... .. 3 78 78 0 0 4 . . .... .. 2 52 52 0 0 3 .... .. .... .. 2 52 52 0 0 2 .. .... .. 1 26 26 0 0 1 .. ...... .. 2 52 52 0 0 0 .. .... .. 5 130 J L 130 0 0 Totals .. 167 ! 258 93,495 6 0 28 28 8,271 14 0 133 3,903 ' 217 j 397 614 105,670 0 0 I 1 _ * Compiled from cards.

E— Ba.

TABLE IVa. TEACHERS' SUPERANNUATION FUND. Existing Pensioners (1st February, 1934) who retired under the Extended Provisions of the Act.

16

Years of Service. of Amount of Pension. Retirement. Amount of Pension. Males. £ s. d. £ s. d. 8 .. 1 40 15 0 51 2 574 5 0 9 ■ • • • 1 33 15 0 52 2 265 19 0 10 .. 1 67 7 0 53 1 260 ] 0 11 .. 2 123 13 0 54 2 431 2 0 16 .. .. 1 189 6 0 55 11 2,968 9 0 17 .. .. 2 239 5 0 56 8 1,854 19 0 18 .. .. 1 112 2 0 57 8 1,741 3 0 19 .. .. 2 153 6 0 58 10 2,216 2 0 20 .... 1 110 2 0 59 3 760 10 0 21 •• 1 76 6 0 60 19 3,359 6 0 22 .. .. 2 222 19 0 61 7 1,136 17 0 24 .. 1 206 7 0 62 9 1,572 13 0 25 .. .. 2 451 10 0 63 6 1,239 6 0 26 .. .. 2 283 19 0 64 6 827 2 0 27 .. .. 3 566 6 0 Over 64 6 1,357 4 0 29 .. .. 2 367 2 0 30 .. .. 7 894 14 0 31 .. .. 3 621 8 0 32 .. .. 5 828 16 0 33 .. .. 5 728 10 0 34 .. .. 3 529 9 0 35 .. .. 7 1,422 7 0 36 .. .. 10 2,348 0 0 37 .. .. 9 2,427 7 0 38 .. .. 7 2,103 7 0 39 .. .. 6 1,726 18 0 Over 39 .. .. 13 3,690 2 0 100 20,564 18 0 .. 100 20,564 18 0 Females. 4 .. 1 22 2 0 40 1 52 0 0 6 .. 1 14 6 0 45 1 60 7 0 8 .. .. 2 84 8 0 46 7 1,242 11 0 9 ■• .. 2 96 18 0 47 10 1,459 10 0 11 •• 1 63 0 0 48 12 1,816 14 0 12 .. .. 3 141 15 0 49 5 847 12 0 13 .. .. 5 341 18 0 50 19 1,668 10 0 14 .. .. 7 394 13 0 51 14 1,473 7 0 15 .. .. 1 60 7 0 52 14 1,458 10 0 16 •• •• 2 125 9 0 53 15 2,043 13 0 17 .... 3 284 5 0 54 8 975 0 0 18 .. .. 2 140 5 0 Over 54 10 912 19 0 19 .. .. 2 155 11 0 20 .. .. 5 757 3 0 21 .. .. 5 546 17 0 22 .. .. 3 286 18 0 23 .. .. 5 461 18 0 24 .. .. 4 502 14 0 25 .. .. 6 818 16- 0 26 .. .. 6 830 12 0 27 .. .. 8 1,037 16 0 28 .. .. 8 1,275 13 0 29 .. .. 15 2,376 9 0 Over 29 .. .. 19 3,191 0 0 Totals .. 116 14,010 13 0 .. 116 14,010 13 0

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

3---E. BA.

17

Salaries as at 1st February, 1934. Number Present Annual jNumDer. Contribution. . . , A ? e , Males. Females. „, A ? e . attained. attained. Males. | Females. Actual. j Contributing. Actual, jcontributing. Males. j Females. £ £ £ £ £ £ 18 1 1 39 39 80 80 2 4 18 19 .. 5 13 459 459 780 780 23 39 19 20 .. 41 68 2,529 2,529 4,270 4,270 126 213 20 21 .. 97 192 6,431 6,431 11,971 11,971 324 599 21 22 .. 112 279 8,975 8,975 19,662 19,662 449 983 22 23 .. 136 276 14,367 14,367 22,517 22,523 718 1,126 23 24 .. 105 287 15,610 15,610 29,236 29,245 780 1,466 24 25 .. 142 301 26,573 26,573 40,038 40,038 1,329 2,008 25 26 .. 166 295 34,944 34,944 46,450 46,495 1,747 2,327 26 27 .. 187 298 43,978 43,978 52,683 52,747 2,194 2,637 27 28 .. 221 266 55,681 55,741 50,356 50,458 2,787 2,524 28 29 .. 213 253 56,001 56,118 49,519 49.627 2,808 2,485 29 30 .. 198 232 55,823 55,921 47,854 47,911 2,795 2,396 30 31 .. 143 203 42,113 42,148 42,031 42,106 2,107 2,110 31 32 .. 138 160 40,383 40,383 33,981 34,086 2,022 1,712 32 33 .. 122 145 37,281 37,292 32,150 32,271 1,865 1,623 33 34 .. 104 131 33,012 33,067 29,656 29,719 1,671 1,516 34 35 .. 87 128 27,318 27,362 29,369 29,463 1,381 1,485 35 36 .. 84 131 28,163 28,198 30,570 30,791 1,453 1,569 36 37 .. 79 100 26,343 26,343 24,120 24,373 1,355 1,238 37 38 .. 81 133 28,173 28,173 32,693 32,960 1,459 1,719 38 39 .. 91 116 30,288 30,373 29,062 29,466 1,577 1,534 39 40 .. 75 111 26,557 26,731 27,774 28,176 1,410 1,480 40 41 .. 92 96 32,386 32,511 24,997 25,369 1,756 1,353 41 42 .. 80 104 28,073 28,525 26,794 27,648 1,512 1,498 42 43 .. 69 86 24,817 25,153 22,356 23,520 1,345 1,305 43 44 .. 80 92 30,441 30,606 24,383 25,774 1,672 1,408 44 45 .. 69 68 24,924 25,210 18,247 19,241 1,334 1,052 45 46 .. 60 70 24,231 25,068 18,877 20,583 1,392 1,139 46 47 .. 62 67 24,397 24,801 18,749 20,960 1,348 1,199 47 48 .. 51 72 20,736 21,462 18,527 20,409 1,147 1,210 48 49 .. 68 58 28,252 30,184 15,425 17,009 1,673 1,054 49 50 .. 57 43 23,045 23,841 12,096 13,630 1,450 821 50 51 .. 60 45 22,167 23,850 12,217 13,980 1,282 862 51 52 .. 65 39 25,951 28,437 10,560 11,886 1,602 766 52 53 .. 48 38 20,062 22,639 10.115 11,664 1,305 773 53 54 .. 63 41 27,060 30,486 11,300 13,323 1,749 884 54 55 .. 54 21 20,949 23,581 5,715 6,588 1.369 466 55 56 .. 35 9 14,891 16,677 2,402 2,671 976 186 56 57 .. 30 6 12,746 14,815 1,739 2,048 876 141 57 58 .. 26 11 10,332 11,781 3,005 3,559 778 272 58 59 .. 20 5 8,576 9,861 1,480 1,758 663 145 59 60 .. 24 3 8,834 10,443 762 904 721 84 60 6] .. 12 .. 4,198 4,896 .. .. 358 .. 61 62 .. 17 .. 6,419 7,634 .. .. 521 .. 62 63 .. 12 .. 5,819 6,974 .. .. 549 .. 63 64 .. 9 .. 3,962 4,702 .. .. 363 .. 64 65 .. 6 .. 1,944 2,320 .. .. 180 .. 65 66 2 1 973 1,230 126 126 97 13 66 67 .. 1 . . 709 709 .. .. 64 .. 67 68 .. 3 .. 1,093 1,093 .. .. 96 .. 68 69 .... 1 . . .. 126 126 .. 13 69 70 .. . • • • ■ • •• •• •• •• •• 70 71 .. .. .. .. .. .. .. .. .. 71 72 .. .. .. .. .. .. .. •• • • 72 73 .. 1 .. 827 827 .. .. 83 .. 73 74 .. 1 . . 747 747 .. .. 75 .. 74 75 .. .. . . ■ • .• • ■ . • ■• • • 75 76 .. .■ • • • • ■• • • •• ■ • ■ • 76 77 . . 1 .. 324 400 .. .. 40 .. 77 Totals .. 3,806 5,095 1,100,926 1,133,218 946,820 971,994 60,758 51,437

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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.

18

Contributing Members : Males. j Contributing Members : Females. Probabilities of Withdrawal, Death, and Retire- ! Probabilities of Withdrawal, Death, and Retirement within a Tear (expressed as a Percentage i ment within a Year (expressed as a percentage of the Number existing in the Service at the i of the Number existing in the Service at the Age. beginning of the Year). beginning of the Year). Age. Withdrawal. Death. Retirement. Withdrawal. ' Death. Retirement. - _ i Per Cent. Per Cent. Per Cent. Per Cent. Per Cent. Per Cent, 15 .. 2-40 0-17 .. 2-40 0-08 .. 15 16 .. 2-40 0-18 .. 2-60 0-08 .. 16 17 .. 2-40 0-18 .. 2-80 0-08 .. 17 18 .. 2-40 0-19 .. 3-10 0'08 . . 18 19 .. 2-39 0-19 .. 3-60 0-08 .. 19 20 .. 2-37 0-20 .. 4-20 0-08 .. 20 21 .. 2-35 0-20 .. 5-00 0-09 .. 21 22 .. 2-32 0-21 .. 5-90 0 09 .. 22 23 .. 2-29 0-21 .. 7-00 0-09 .. 23 24 .. 2-25 0-22 .. 8-30 0-09 .. 24 25 .. 2-21 0-22 .. 9-80 0-09 .. 25 26 .. 2-16 0-23 .. 10-40 0-10 .. 26 27 .. 2-11 0-23 .. 10-70 0-10 0-04 27 28 .. 2-06 0-24 0-05 10-40 0-10 0-04 28 29 .. 2-01 0-25 0-05 9-70 0-11 0-04 29 30 .. 1-95 0-26 0-06 8-90 0-11 0-04 30 31 .. 1-89 0-27 0-06 8-00 0-12 0-04 31 32 .. 1-83 0-28 0-06 7-20 0-13 0-04 32 33 .. 1-77 0-29 0-06 6-50 0-14 0-04 33 34 .. 1-70 0-30 0-07 5-90 0-15 0-04 34 35 .. 1-63 0-31 0-07 5-30 0-16 0-05 35 36 .. 1-56 0-32 0-07 4-80 0-17 0-06 36 37 .. 1-50 0-33 0-08 4-30 0-18 0-07 37 38 .. 1-45 0-34 0-08 3-80 0-19 0-09 38 39 .. 1-40 0-36 0-08 3-40 0-20 0-12 39 40 .. 1-35 0-38 0-09 3-00 0-21 0-16 40 41 .. 1-31 0-40 0-09 2-60 0-22 0-24 41 42 .. 1-28 0-42 0-10 2-20 0-23 0-36 42 43 .. 1-26 0-45 0-11 1-80 0-24 0-53 43 44 .. 1-24 0-48 0-12 1-50 0-25 0-76 44 45 .. 1-22 0-51 0-14 1-20 0-26 1-35 45 46 .. 1 -19 0-54 0-16 0-90 0-27 2-10 46 47 .. 1-15 0-57 0-18 0-60 0-28 3-00 47 48 .. 1-10 0-61 0-20 0-40 0-29 4-00 48 49 .. 1-03 0-65 0-24 0-20 0-30 5-00 49 50 .. 0-95 0-69 0-31 .. 0-32 6-00 50 51 .. 0-86 0-73 0-41 .. 0-34 7-60 51 52 .. 0-76 0-77 0-55 .. 0-36 9-40 52 53 .. 0-66 0-81 1-00 .. 0-38 12-80 53 54 .. 0-55 0-86 2-40 .. 0-41 20-00 54 55 .. 0-43 0-91 4-00 .. 0-44 23-00 55 56 .. 0-30 0-96 6-00 .. 0-48 24-00 56 57 .. 0-16 1-01 8-00 .. 0-53 24-50 57 58 .. .. 1-06 10-00 .. 0-59 24-80 58 59 .. .. 1-12 12-00 .. 0-65 25-00 59 60 .. .. 1-18 14-00 .. .. 100-00 60 61 .. .. 1-24 16-00 62 .. .. 1-30 19-00 63 .. .. 1-37 22-00 64 .. .. 1-44 26-00 65 .. .. .. 100-00

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

4—E. BA.

19

Males. i Females. Age. ; Withdrawals. Deaths. Retirements. Withdrawals. Deaths. Retirements. Age. i' ! ! : ' : 15 .. 100,000 2,400 170 .. 100,000 2,400 80 .. 15 16 .. | 97,430 2,338 175 .. 97,520 2,536 78 .. 16 17 ; 94,917 2,278 171 .. 94,906 2,657 76 .. 17 18 .. ! 92,468 2,219 176 .. 92,173 2,857 74 .. 18 19 .. 90,073 2,153 171 .. 89,242 3,213 71 .. 19 20 .. 87,749 2,080 175 .. 85,958 3,610 69 .. 20 21 .. 85,494 2,009 171 .. 82,279 4,114 74 .. 21 22 .. 83,314 1,933 175 .. 78,091 4,607 70 .. 22 23 : 81,206 1,860 171 .. 73,414 5,139 66 .. 23 24 .. 79,175 1,781 174 .. 68,209 5,661 61 .. 24 25 .. 77,220 1,707 170 .. 62,487 6,124 56 .. 25 26 .. 75,343 1,627 173 .. 56,307 5,856 56 .. 26 27 .. 73,543 1,552 169 .. 50,395 5,392 50 20 27 28 .. 71,822 1,480 172 36 44,933 4,673 45 18 28 29 .. 70,134 1,410 175 35 40,197 3,899 44 16 29 30 .. 68,514 1,336 178 41 36,238 3,225 40 14 30 31 .. 66,959 1,266 181 40 32,959 2,636 40 13 31 32 .. 65,472 1,198 183 39 30,270 2,179 39 12 32 33 .. 64,052 1,134 186 38 28,040 1,822 39 11 33 34 .. 62,694 1,066 188 44 26,168 1,544 39 10 34 35 .. 61,396 1,001 190 43 24,575 1,302 39 12 35 36 .. 60,162 '939 193 42 23,222 1,114 39 14 36 37 .. 58,988 885 195 47 22,055 948 40 15 37 38 .. 57,861 -839 197 46 21,052 800 40 .19 38 39 .. 56,779 795 204 45 20,193 686 40 24 39 40 .. 55,735 752 212 50 19,443 583 41 31 40 41 54,721 717 219 49 18,788 488 41 45 41 42 .. 53,736 688 226 54 18,214 401 42 66 42 43 .. 52,768 665 237 ,58 17,705 319 42 94 43 44 .. 51,808 642 249 62 17,250 259 43 131 44 45 .. 50,855 620 259 71 16,817 202 44 227 45 46 .. 49,905 594 269 80 16,344 147 44 343 46 47 .. 48,962 563 279. 88 15,810 95 44 474 47 48 .. 48,032 528 293 96 15,197 61 44 608 48 49 .. 47,115 485 306 113 14,484 29 43 724 49 50 .. 46,211 439 319 143 13,688 .. 44 821 50 51 .. 45,310 390 331 186 12,823 .. 44 974 51 52 .. 44,403 337 342 244 11,805 .. 42 1,109 52 53 .. 43,480 287 352 435 10,654 .. 40 1,363 53 54 .. 42,406 233 365 1,018 9,251 .. 38 1,849 54 55 .. 40,790 175 371 1,632 7,364 .. 32 1,692 55 56 .. 38,612 116 371 '2,317 5,640 .. 27 1,352 56 57 .. 35,808 57 362 2,865 4,261 .. 23 1,042 57 58 .. 32,524 .. 345 3,252 3,196 .. 19 791 58 59 .. 28,927 .. 324 3,471 2,386 .. 15 595 59 60 .. 25,132 .. 297 3,518 1,776 .. .. 1,776 60 61 .. 21,317 .. 264 3,496 62'.. 17,557 .. 228 3,336 63 .. 13,993 .. 192 3,078 ,... .. 64 .. 10,723 .. 154 2,788 65 .. 7,781 .. .. 7,781 .. .. j • ■> ■ ■ ; | I ' - I

E.—BA

TABLE VIII. Consolidated Revenue Account of the Teachers' Superannuation Fund from Ist January, 1906, to 31st January, 1934. Income. £ s. d. Outgo. £ s. d. Funds at Ist January, 1906 . . .. Pensions to members, and allowances Members'contributions .. .. 2,309,263 19 6 to widows and children .. .. 2,892,751 4 8 Transfers from other funds .. .. 4,726 9 2 Contributions refunded .. .. 424,414 6 11 Government subsidy .. .. 1,058,583 6 8 Transfers to other funds .. .. 5,597 410 Subsidy under section 114, Public Ser- Administration expenses .. .. 19,312 0 1 vice Superannuation Act, 1927 .. 33,187 15 7 Commission .. .. .. 29,960 4 6 Subsidy from Fiji Government .. 2,202 17 3 Provision for loss on investments .. 16,475 17 11 Interest from investments .. .. 955,781 1 0 Other payments .. .. .. 43 6 9 Interest on arrears of contributions .. 26,333 3 2 Funds at 31st January, 1934 .. 1,003,184 16 1 Other receipts .. .. .. 1, 660 9 5 £4,391,739 1 9 £4,391,739 1 9 TABLE IX. SUMMARY OF TEACHERS' SUPERANNUATION FUND RESULTS. Valuation Balance-sheet, as at 31st January, 1934. Males — Liabilities. £ £ Value of 561 pensions for £154,147 19s. per annum already granted .. 1,354,293 ~ 268 pensions for £8,308 per annum granted to widows of deceased contributors and pensioners .. .. .. 78,737 „ 68 pensions for £1,768 per annum granted to children of deceased contributors and pensioners .. .. .. 7,148 ~ prospective pensions to widows .. .. .. .. 230,541 „ prospective pensions to children .. .. .. .. 45,686 „ prospective pensions for back service .. .. .. 1,597,700 „ prospective pensions for future service .. .. .. 1,231,410 ~ return of contributions on death .. .. .. 14,710 „ return of contributions on withdrawal .. .. .. 130,037 „ return of contributions (section 9 (2), National Expenditure Adjustment Act, 1932), say .. .. .. ~ 16,000 4,706,262 Females— Value of 981 pensions for £135,402 3s. per annum already granted .. 1,535,722 „ prospective pensions for back service .. .. 1,226,984 „ prospective pensions for future service .. .. .. 1,120,165 „ return of contributions on death .. .. . . 23,646 ~ return of contributions on withdrawal .. .. .. 183,899 „ return of contributions (section 9 (2), National Expenditure Adjustment Act, 1932), say .. .. .. .. 14,000 — 4,104,416 £8,810,678 Assets. £ Accumulated funds .. .. .. .. .. .. .. .. 1,003,185 Value of future contributions from males .. .. .. .. .. 820,302 ~ future contributions from females .. .. .. .. .. 503,375 subsidy of £43,000 now being paid .. .. .. .. .. 955,556 ~ subsidy under section 114, Public Service Superannuation Act .. .. 156,114 ~ future increase in subsidy to be provided .. .. .. .. 5,372,146 £8,810,678

20

E.—BA,

TABLE X. Statement showing Subsidies paid as compared with Subsidies required under the System indicated in the Act.

Approximate Cost of Paper.—Preparation, not given ; printing (2,434 copies), £35 10s.

By Authority: G-. H. Loney, Government Printer, Wellington. —1936.

Price 9d.)

21

Year ended. Subsidy required. Subsidy paid. j Shortage. £ £ £ 31st March, 1906 .. .. Nil 5,000 -(5,000) 1907 .. .. 2,000 Nil 2,000 1908 .. .. 5,000 Nil 5,000 31st December, 1908 .. .. 5,000 Nil 5,000 1909.. .. 8,000 7,000 1^000 1910.. .. 11,000 7,000 4,000 1911.. .. 17,000 7,000 10,000 1912.. .. 17,000 7,000 10,000 1913.. .. 17,000 17,000 Nil 1914.. .. 33,000 17,000 16,000 1915.. .. 33,000 17,000 16,000 1916.. .. 33,000 17,000 16,000 1917.. .. 43,000 17,000 26,000 1918.. .. 43,000 17,000 26,000 1919.. .. 43,000 43,000 Nil 1920.. .. 68,000 43,000 25,000 1921 .. .. 68,000 43,000 25,000 31st January, 1923*.. .. 73,667 71,583 2,084 1924 .. .. 93,000 63,833 29,167 1925 .. .. 137,000 68,000 69,000 1926 .. .. 137,000 68,000 69,000 1927 .. .. 137,000 68,000 69,000 1928 .. .. 173,000 68,000 105,000 1929 .. .. 173,000 68,000 105,000 1930 .. .. 173,000 68,000 105,000 1931 .. .. 214,000 122,167 91,833 1932 .. .. 214,000 43,000 171,000 1933 .. .. 214,000 43,000 171,000 1934 .. .. 214,000 43,000 171,000 Totals .. .. 2,398,667 1,058,583 1,340,084 * Period of thirteen months.