PUBLIC SERVICE SUPERANNUATION BOARD (TWENTY-EIGHTH ANNUAL REPORT OF THE), WITH ACCOUNTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1936.

Appendix to the Journals of the House of Representatives, 1936 Session I, H-26

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1936. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION BOARD (TWENTY-EIGHTH ANNUAL REPORT OF THE), WITH ACCOUNTS, FOR THE FINANCIAL YEAR ENDED 31st MARCH, 1936.

Presented to Parliament pursuant to the Provisions of the Public Service Superannuation Act, 1927.

REPORT.

The Board has the honour to submit the following report upon the transactions in connection with the Public Service Superannuation Fund : — The Revenue Account, balance-sheet, and statements regarding membership and retiring and other allowances will be found appended. The Board. —Mr. G. E. Miller, State Advances Superintendent, a statutory member of the Board, ceased to be a member on his appointment as Manager, Mortgage Corporation of New Zealand, and was succeeded by Mr. G. G. Rose. Contributors. —The number of new contributors who joined the scheme during the year, and other particulars, are contained in the following table : —

The following table shows particulars of the public servants who were contributing to the fund on the 31st March, 1936 (after allowing for deaths, retirements, and withdrawals), grouped according to their respective rates of contribution : —

Retiring and other Allowances. —Pensions for £26,989 12s. per annum were granted during the year as follows : For age or length of service, £20,818 ss. to 88 members (69 male and 19 female members) ;

Number. Rate per Cent, of Annual Salary. Annual Contributions. Contribution. Male. Female. Total. £ s. d. £ s. d. 5 1,139 495 1,634 162,206 15 0 8,110 6 9 6 47 12 59 15,222 10 0 913 7 0 7 14 6 20 5,627 18 4 393 19 1 8 19 1 20 6,137 5 10 490 19 8 9 9 1 10 3,075 16 8 276 16 6 10 4 1 5 1,559 7 6 155 18 9 Transfers from other 10 2 12 2,471 13 4 123 11 8 funds Totals .. 1,242 518 1,760 196,301 6 8 10,464 19 5

„ , Number. Rate per Cent. *nrnai of Annual Salary. „ f™?. 1 _ " Contributions. Contribution. Ma l e _ Female. Total. £ s. d. £ s. d. 5 14,084 2,213 16,297 4,056,653 0 0 202,832 13 0 6 1,313 135 1,448 439,855 12 6 26,391 6 9 7 785 85 870 266,490 0 0 18,654 6 0 8 396 42 438 136,791 0 10 10,943 5 8 9 116 11 127 41,289 11 8 3,716 1 3 10 17 2 19 5,388 18 4 538 17 10 Totals .. 16,711 2,488 19,199 4,946,468 3 4 263,076 10 6 1 __ ]___

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for medical unfitness for duty, £4,009 7s. to 32 members ; to 1 Police contributor injured on duty, £238 per annum ; to widows and children of deceased members, £2,635 per annum to 85 widows, and £1,248 per annum to 48 children. Under section 114 of the Public Service Superannuation Act, 1927, the statutory allowances to widows and children were increased from £18 to £31 per annum and from ss. per week to 10s. per week respectively. The additional expenditure on this account is recovered from the Consolidated Fund. Civil Service Act, 1866 : Compensation Rights. —The total amount of such compensation for which the fund became liable since the initiation of the scheme is £561,134. To this amount must be added accretions to the date of retirement, approximately £143,000, for which the Consolidated Fund would otherwise have been liable, and the whole may be fairly set against the total subsidies paid to the fund during the past twenty-eight years, amounting to £2,333,333. One hundred and seventeen retiring or other allowances were discontinued by death, and fiftyseven for other causes—viz., four widows remarried and fifty-three children reached the age of fourteen years. The annual amount payable at the close of the year was £497,763 19s. 10d., as shown in the statement attached. Income. —The total income for the year was made up as follows £ Members' ordinary contributions .. . . .. .. .. 256,425 Subsidy, Cook Islands and Samoan Administration, &c. .. .. 561 Contributions from Government .. .. .. .. . • 147,952 Fines, &c. .. .. .. ■ • • • • • • ■ 391 Interest .. .. .. •• •• 151,599 Premium on conversion, local-body debentures .. .. .. 8,379 Total income for year .. . . .. . . .. £565,307 Outgo. —The pensions paid during the year to contributors who have retired and to dependants of deceased contributors amounted to £494,988 6s. 9d.—viz., £453,687 9s. to members and £41,300 17s. 9d. to widows and children. Refunds of contributions to contributors who have left the Service amounted to £35,700 ss. 10d., while the refunds under section 42 to personal representatives of deceased contributors and annuitants amounted to £8,180 17s. lid. Four contributors who were retired elected to accept a refund of their contributions under section 34, amounting to £923 3s. 2d., in lieu of retiring-allowances. Three contributors were transferred to other funds in accordance with the provisions of section 120, and their contributions, amounting to £305 Bs. 6d., were accordingly transferred to such funds. The salaries of the staff and other office expenses were £2,233 16s. lOd. and £2,000 13s. 6d. respectively. The total outgo for the year was £548,518 19s. Bd. Accumulated Funds. —These amounted at the end of the year to £2,934,239 19s. 9d. Balance-sheet. —On the 31st March the total assets of the fund, which include provision for the outstanding accounts, amounted to £3,028,433 Is. 7d. The balance-sheet appended gives full particulars as to the liabilities and assets. Investment of the Fund. —The total investments of the fund at each rate of interest were as follow: — New Zealand Government inscribed stock — £ s. d. 4 per cent. .. .. •• •• •• •• •• 596,162 13 9 Rural Advances bonds— 5 per cent.* .. .. . • •• •• •• •• 236,155 10 0 Mortgage Corporation of New Zealand inscribed stock — 3§ per cent. .. .. .. •• •• •• 50,000 0 0 Debenture securities. £s. d. 3i per cent. .. .. •• •• •• 100,000 0 0 4J per cent. .. .. • ■ • ■ ■ • 385, 308 18 1 5 per cent, f .. .. ■ ■ • • • • 5,250 0 0 5J per cent.f .. .. •• •• •• 3,045 0 0 6 per cent.f .. .. •• 75,400 9 8 569,004 7 9 Mortgage securities — 4J per cent. .. .. • • • • • ■ 128,155 0 0 4J per cent. .. .. •• •• 196,589 10 5 5 per cent. .. .. •• •• 39,586 2 3 5| per cent.| •• •• •• 4,032 3 8 6 per cent.J •• ■■ 982,243 14 3 64 per cent.J •• •• •• •• 4,093 9 8 1,354,700 0 3 £2,806,022 11 9

* Subject to an interest-tax at the rate of 20 per cent, charged on all interest on and from Ist April, 1933. Vide section 6, Finance Act, 1932-33. t Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4| per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. } Subject to a reduction of 20 per cent., but not to be reduced below the rate of 5 per cent, per annum. Part 111, National Expenditure Adjustment Act, 1932.

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A special payment into the fund was made by Treasury (amounting to £28,324), being the amount of the reduction in the interest-rate of the four classes of securities. The above total includes £20,882 3s. invested on Stipendiary Magistrates' account. The average rate of interest earned for the financial year on the mean funds was £5 6s. sd. per cent., a reduction of Is. lid. per cent, as compared with the previous year. In this connection it must be understood that the amount of interest due and outstanding and interest accrued but not due at the balance date is taken into account in arriving at the before-mentioned rate. Reference to the balancesheet discloses that the sum of £47,104 16s. 7d. is overdue on mortgage securities. The Courts, acting under the powers contained in the Mortgagors and Tenants Relief Act, 1933, have written off during the year the sum of £953 16s. 3d., and £1,002 17s. Bd. was written off by the Board, acting under the provisions of section 20, Finance Act (No. 3), 1934, being arrears of interest; in addition, the rate of interest lias been reduced from 5 per cent, to as low as 2 per cent, in a number of cases for periods varying from one to three years. Operations of the Fund. —The following comparative statement shows the operations of the fund (to the nearest pound) as disclosed in the Revenue Accounts and balance-sheets for the eleven-year period ended 31st March, 1936.

Chairman.

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Income. Expenditure. Contributions. Interest on Year - 1 Misnel- Adminis- MIa( , e] . i rPnm „. Invest- Arrears of jineons Beftmds - Pensions. tration lated Funds Employees. Employer. Contribu- laneOTS - Expenses. laneous - lated * uncus, ments. tioIls . £ £ £ £ £ £ £ ££ £ 1925-26 .. 257,378 102,436 132,993 3,805 277 53,362 316,400 6,920 185 2,317,399 1926-27 .. 246,635 100,669 139,369 899 328 45,341 322,759 7,881 28 2,429,290 1927-28 .. 249,301 100,955 146,351 439 504 50,193 338,138 7,932 2,124 2,528,454 1928-29 .. 253,593 101,130 147,040 332 269 44,234 351,396 8,070 1,176 2,625,943 1929-30 .. 263,424 201,707 154,612 146 405 50,107 367,496 8,158 2,472 2,818,004 1930-31 .. 271,423 102,289 162,888 264 422 40,754 381,243 8,418 8,775 2,917,154 1931-32 .. 190,347 102,757 168,453 238 486 48,552 431,922 8,650 2,277 2,888,034 1932-33 .. 226,420 141,038 166,814 447 302 45,345 472,288 7,620 387 2,897,415 1933-34 .. 228,650 144,129 157,200 651 4,464 37,551 486,925 7,180 1,287 2,899,564 1934-35 .. 238,844 149,766 153,333 185 19,086 40,065 488,836 7,429 6,997 2,917,452 1935-36 .. 256,249 148,512 151,599 176 8,770 44,804 494,988 7,250 1,477 2,934,240 Liabilities. Assets. Sundry Creditors. Sundry Debtors. Year 0ther ' Investments mTwith * ear - Accumu- including (including rwrlr flash at Miscellated Fund. Fen- Re- Em- Govern- Accrued Em- Em- Bank. laneous. sions. funds, ployees. ment Interest). ployees. ployers. Depart- partments. menis. £ £ £ £ £ £ £ £ £ ££ 1925-26 .. 2,317,399 2,276 3,162 3,286 1,002 2,339,705 5,763 109 34,421 11,320 307 1926-27 .. 2,429,290 3,059 922 1,587 22,075 2,474,867 20,942 241 23,103 1,691 589 1927-28 .. 2,528,454 3,526 1,983 1,903 19,072 2,577,894 21,305 215 12,253 5,195 2,576 1928-29 .. 2,625,943 3,825 943 2,232 14,739 2,678,470 18,118 255 10,881 4,062 398 1929-30 .. 2,818,004 4,323 1,340 676 17,012 2,862,747 17,267 126 25,067 1,457 246 1930-31 .. 2,917,154 4,097 1,735 517 14,178 2,974,146 14,391 277 12,074 1,004 288 1931-32 .. 2,888,034 3,566 1,617 4,725 54,472 2,979,354 16,101 243 20,406 326 483 1932-33 .. 2,897,415 3,056 1,444 398 14,853 2,892,282 24,541 212 61,510 652 2,469 1933-34 .. 2,899,564 2,684 1,692 212 3,386 2,882,531 29,191 231 56,922 1,018 2,147 1934-35 .. 2,917,452 3,302 904 288 10,803 2,777,030 13,957 198 73,625 130,378 2,062 1935-36 .. 2,934,240 3,703 1,980 407 22,123 2,861,347 24,919 276 70,801 67,906 1,707

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PUBLIC SERVICE SUPERANNUATION FUND. Revenue Account foe the Year ended 31st March, 1936. Dr. £ s. d. Gr. To Amount of fund at beginning of year .. 2,917,451 12 2 By Retiring-allowances— £ s. d. £ s. d. Members' contributions— To members .. .. 453,687 9 0 Under section 19 (ordinary) .. .. 255,356 9 8 To widows and children 41,300 17 9 Transferred from other superannuation — — 494,988 6 9 funds .. .. .. .. 892 12 3 Contributions returned— Interest on arrears of contributions .. 176 1 1 Under section 37 (left Government subsidy— service) .. .. 35,700 510 Under section 50, Public Under section 42 (death) 8,180 17 11 Service Superannuation £ s. d. Under section 34 (retireAct, 1927 .. .. 86,000 0 0 ment) .. .. 923 3 2 Under section 19, Fi- 44,804 6 11 nance Act (No. 3), Contributions transferred to other super--1934 .. .. 40,918 7 3 annuation funds (section 120) .. .. 305 8 6 Under section 19, Fi- Loss on realization of securities .. .. 1,171 6 6 nance Act, 1935 .. 3,000 0 0 Expenses— £ s. d. Under section 114, Public Salaries .. .. 2,233 16 10 Service Superannuation Audit fees .. .. 75 0 0 Act, 1927 (widows and Contingencies .. 11 7 9 children) .. .. 18,034 0 2 Legal charges .. 190 11 4 147,952 7 5 Post and Telegreph DeInterest on investments .. 125,231 16 3 partment charges .. 1,026 8 0 Less amounts written off Public Trustee's commisby Court orders —Mort- sion .. .. 3,015 0 8 gagors and Tenants Medical fees .. .. 80 17 0 Belief Act, 1933, £953 Heating, lighting, and 16s. 3d.; also less cleaning .. .. 65 9 7 amounts written off by Travelling - expenses Board, section 20, Fi- (Board members) .. 24 7 8 nance Act (No. 3), Rent .. .. 144 0 0 1934, £1,002 17s. 8d... 1,956 13 11 Printing and stationery 111 17 6 — Postages, telegrams, and 123,275 2 4 services .. .. 215 4 7 Reimbursement by Trea- Typewriters and other sury on account reduction machines (upkeep) .. 11 18 10 in interest* .. .. 28,324 0 0 Messenger service .. 42 7 8 151,599 2 4 Furniture and fittings .. 13 7 Subsidy Cook Islands and Samoa .. 544 10 11 7,249 11 0 Subsidy Imperial War Graves Commission .. 15 19 1 Balance as at 31st March, 1936 .. .. 2,934,239 19 9 Premium on conversion local-body debentures .. .. .. .. 8,379 4 5 Fines, fees, and sundries .. .. 345 15 10 Stipendiary Magistrates' Account: Administration expenses recovered .. .. 45 4 3 £3,482,758 19 5 £3,482,758 19 5

* Payment by Treasury of amount of statutory reduction of interest on mortgage securities (National Expenditure Adjustment Act, 1932, Part III), £13,592 ; interest-tax, rural advances bonds, and intermediate credit debentures (section 6, Finance Act, 1932-33), £2,818; statutory reduction of interest, New Zealand Government inscribed stock (New Zealand Debt Conversion Act, 1932-33), £6,332; statutory reduction of interest, local-body debentures (section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33), £5,582 : total, £28,324.

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PUBLIC SERVICE SUPERANNUATION FUND—continued. Balance-sheet as at 31st March, 1936. Liabilities. Assets. £ s. d. Superannuation Fund Ac- Amount invested by the Board .. .. 2,785,140 8 9 count— £ s. d. £ s. d. Contributions of members— £ s. d. Balance due from Revenue In course of transmission .. 23,292 3 6 Account .. .. 2,934,239 19 9 Due and outstanding .. 1,626 17 7 Add value of office furniture, 24,919 1 1 fittings, and machinery .. 300 7 2 Interest on investments— Due and outstanding .. 47,104 16 7 2,934,540 6 11 Accrued but not due .. 29,101 18 10 Less amount due to con- 76,206 15 5 tributors under the pro- Subsidy-—• visions of section 9 (2), Cook Islands and Samoa .. 87 14 10 National Expenditure Imperial War Graves CommisAdjustment Act, 1932 70,460 16 8 sion .. .. .. 5 12 6 • — 2,864,079 10 3 Section 114. Public Service Retiring and other allowances Superannuation Act, 1927 .. 182 19 1 due in course of payment— 276 6 5 To members .. .. 3,319 4 3 Contributions transferable from other super - To widows and children .. 383 8 3 animation funds .. .. .. .. 310 10 4 3,702 12 6 Retiring-allowances recoverable (Pensions DeRefunds of contributions due partment, &c.) .. .. .. 74 12 8 in course of payment— Cost-of-living bonus (recoverable) .. .. 4 6 8 Under section 37 (left ser- Rates, fees, premiums paid on account mortvice) .. .. .. 339 I 9 gagors (recoverable) .. .. .. 1,137 15 10 Under section 42 (death) .. 1,420 12 3 Sundry debtors (Raratongan Administration) .. 175 17 4 Under section 34 (retire- £ s. d. ment) .. .. 220 511 , . , , „ m f 8,549 15 6 1,979 19 11 Cash m hand, Public Trustee { t62 ; 251 4 5 Expenses due in course of pay- 70,800 19 11 ment — Cash in bank .. .. .. .. 67,905 13 6 Heating, lighting, and clean- Office furniture, fittings, and machinery .. 300 7 2 ing .. .. .. 018 3 Assets in Suspense .. .. .. .. 1,180 6 6 Printing and stationery .. 816 8 Post and Telegraph Department charges .. .. 237 4 0 246 18 11 Contributions paid in advance or in error .. 312 16 3 Public Trustee's charges on accrued interest .. 2,464 8 4 Balance Government subsidy* .. .. 64,500 0 0 Amount due to contributors under the provisions of section 9 (2), National Expenditure Adjustment Act, 1932 .. .. .. 70,460 16 8 Writing off, Suspense Account .. .. 1,180 6 6 Post Office Account .. .. .. 19,411 8 1 Unclaimed Account (contributions, &c.) .. 94 4 2 £3,028,433 1 7 £3,028,433 1 7

* The Government subsidy is paid in January of each year ; owing to the change in the date of the financial year, to show the true position of the fund it is necessary to state this item as a liability. f On deposit at call.

I hereby certify that the Revenue Account and Balance-sheet have been duly compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—G. F. C. Campbell, Controller and Auditor-General. Stipendiary Magistrates' Account.] Revenue Account for the Year ended 31st March, 1936. Dr. £ s. d. Gr. £ g . d. To Amount of fund, Ist April, 1935 .. .. 20,797 16 11 By Retiring-allowances .. .. .. 4,451 5 0 Members' contributions, section 63, Public Loss on realization of securities .. .. 9 0 0 Service Superannuation Act, 1927 .. .. 1,444 15 0 Administration expenses .. .. .. 45 4 3 Interest on investments .. .. .. 1,080 6 4 Balance as at 31st March, 1936 .. .. 20,882 3 0 Premium on conversion local-body debentures.. 64 14 0 Subsidy under section 19, Finance Act, 1935 .. 2,000 0 0 £25,387 12 3 £25,387 12 3 Balancer-sheet as at 31st March, 1936. Liabilities. £ s. d. £ s. d. Assets. £ s. d. Stipendiary Magistrates' Account— Amount invested by the Board .. .. 20,882 3 0 Balance due from Revenue Account .. .. .. 20,882 3 0 Less amount due to contributors under the provisions of section 10 (3), National Expenditure Adjustment Act, 1932 .. .. 471 5 11 — 20,410 17 1 Amount due to contributors under the provisions of section 10 (3), National Expenditure Adjustment Act, 1932 .. .. 471 5 11 £20,882 3 0 £20,882 3 0

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PUBLIC SERVICE SUPERANNUATION FUND—continued. Subsidiary Account. Cost-of-living Bonus paid to Annuitants of the Public Service Superannuation Fund on behalf of the Treasury. Dr. £ s. d. Gr. £ s. d. To Amount disbursed for period Ist April, 1935, to By Amount received from Treasury .. .. 1,690 3 3 31st March, 1936 .. .. .. 1,694 911 Balance due from Treasury .. .. .. 4 6 8 £1,694 9 11 £1,694 9 11 R. S. Wogan, Secretary, M. P. Finnigan, Accountant, Wellington, 17th June, 1936. Public Service Superannuation Board. I hereby certify that the Revenue Account and Balance-sheet have been duly compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby.—G. F. C. Campbell, Controller and Auditor-General.

Statement of Contributors for the Year ending 31st March, 1936.

Particulars of Contributions discontinued during the Year.

Progress of Contributors since Date of Establishment of the Fund to 31st March, 1936.

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dumber. I —r Allnual Salar y' Contributions. | M. | F. Total. £ s. d. .£ s. d. Contributors at beginning of the year .. 15,903 2,302 18,205 4,505,100 17 6 240,406 12 11 New contributors entered during the year .. 1,232 516 1,748 193,829 13 4 10,341 7 9 Contributors transferred from other funds .. 10 2 12 2,471 13 4 123 11 8 Increase by promotion during the year .. .. •• .. 409,664 16 8 21,298 10 0 Total .. .. .. 17,145 2,820 19,965 5,111,067 0 10 272,170 2 4 Contributions discontinued during the year .. 434 332 766 164,598 17 6 9,093 11 10 Total contributors at end of year 16,711 2,488 19,199 4,946,468 3 4 263,076 10 6

Annual Amount BetmngHow discontinued. Annual Salary. rv™triwi n ™ P aid on allowance M F Total Contributions. B, etireme nt. granted. £ s. d. £ s. d. £ s. d. £ s. d. By death before retiring-allowance en- 56 3 69 16,282 7 6 951 19 5 7,381 6 10 1,924 0 0 tered upon (sees. 42 and 43) By retirement before retiring age (sec. 275 304 579 98,151 0 0 5,063 17 10 35,700 5 10 37) By retirement (sec. 34) .. .. 4 .. 4 1,078 5 0 71 3 0 923 3 2 By retirement medically unfit (see. 32) 27 5 32 9,125 6 8 501 7 5 .. 4,009 7 0 By retirement (sec. 61) .. .. 1 • ■ 1 415 0 0 20 15 0 . . 238 0 0 By retirement at retiring age or for 69 19 88 38,348 16 8 2,421 16 11 .. 20,818 5 0 length of service (sec. 26) By transfer to other funds (sec. 120) .. 2 1 3 751 0 0 37 11 0 305 8 6 By reduction .. .. 447 1 8 25 1 3 Total .. .. .. 434 332 766 164,598 17 6 9,093 11 10 44,310 4 426,989 12 0

Number. | s i Annual Salary. contributions. M. F. Total. £ s. d. £ s. d. Total entered .. .. .. .. 35,561 9,855 45,416 10.669,907 10 0 615,304 15 11 Total discontinued 18,850 7,367 26,217 5,723,439 6 8 352,228 5 5 Total existing at 31st March, 1936 .. 16,711 2,488 19,199 4,946,468 3 4 263,076 10 6

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R. S. Wogan, Secretary, M. P. Finnigan, Accountant, Public Service Superannuation Board.

PUBLIC SERVICE SUPERANNUATION FUND— continued. Statement of Retiring and other Allowances for the Year ending 31st March, 1936.

Approximate Cost of Paper.—Preparation, not given ; printing (1,944 copies), £12 10s.

By Authority: 6. H. Loney, Government Printer, Wellington. —1936.

Wellington, 17th June, 1936.

Price 6d.]

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