EDUCATION: TEACHERS' SUPERANNUATION FUND.

Appendix to the Journals of the House of Representatives, 1939 Session I, E-08

E — 8

1939. NEW ZEALAND.

EDUCATION: TEACHERS' SUPERANNUATION FUND.

Presented to both Houses of the General Assembly by Command of His Excellency. No. 1. —THIRTY-THIRD ANNUAL REPORT OF THE TEACHERS' SUPERANNUATION BOARD. For the Year ended 31st January, 1939. Tie Hon. the Minister of Education. Sir, — Wellington, 10th May, 1939. The Board has to submit the following report for the year ended the 31st January, 1939 : The Board. —The usual quarterly meetings of the Board were held in February, May, August, and November. The following figures show the transactions, &c., of the fund for the year ended 31st January, 1939, as compared with those for previous year:— 1939. 1938. Contributors on roll at 31st January .. .. .. 8,653 8,357 Increase from previous year .. .. .. .. 296 299 Retiring and other allowancesAnnual rate granted during year .. .. £14,103 £12,709 Total annual rate at 31st January .. .. .. £326,500 £325,130 Number granted during year — On retirement .. .. .. .. .. 76 68 To widows .... .. .. .. .. 21 21 To children .. .. .. .. 8 5 Number discontinued during year — By death .. .. .. .. .. 78 65 By other causes .. .. .. . . .. 8 14 Number current at 31st JanuaryRetired members .. .. .. 1,684 1,674 Widows and children .. .. .. 388 379 Income for year — £ £ Contributions .. .. .. .. .. 146,231 139,835 Government subsidy— Section 112 of Act .. .. .. .. 82,417* 43,000 Section 114 of Act .. .. .. .. 4,934 5,277 Section 9, Finance Act (No. 2), 1937 .. .. 123,000f Section 9, Finance Act, 1938 .. .. 113,000 Special on account of interest reductions .. .. 6,324 6,547 Total Government subsidy .. .. .. 329,675 54,824 Interest .. .. .. .. .. .. 41,315 42,759 Total income .. .. .. .. £517,221 £237,418 Expenditure — Retiring and other allowances .. .. .. 329,096 328,007 Contributions refunded or transferred .. .. 41,765 " 36", 342 Administration expenses, &c. .. .. .. 3,335 3,209 Reserves for losses on investments .. .. .. 2,000 Total expenditure .. .. .. .. £376,196 £367,558 * This amount includes £39,417 previously shown as paid in advance, f For financial year 1937-38,

I—E. 8.

E.—B,

1939. 1938. £ £ Net surplus for year .. .. .. .. .. 141,025 130,140* Balance at credit of Fund .. .. .. .. .. 975,491 834,465 Funds invested at 31st January — At 3 per cent. .. .. .. .. .. .. 5,000 At 3§ per cent. .. .. .. .. .. 5,000 5,000 At 3| per cent. .. .. .. .. .. 73,948 65,676 At 3| per cent. .. .. .. .. .. 1,200 1,200 At 4 per cent. .. .. .. .. .. 84,191 83,291 At 4J per cent. .. .. .. .. .. 416,887 383,759 At 4f per cent. .. .. .. .. .. 1,800 1,800 At 4J per cent. .. .. .. .. .. 225,650 198,965 At 4f per cent. .. .. .. .. .. 300 300 At 4f per cent. .. .. .. .. .. 100 100 At 5£ per cent. .. .. .. .. .. .. 2,250 At 5| per cent. .. .. .. .. .. 2,400 2,400 At 6 per cent. .. .. .. .. .. .. 269 At 6 per cent, f (subject to reduction under the National f 152,062 211,432 At 6| per cent. \ Expenditure Adjustment Act, 1932) •• \ Total .. .. .. .. .. £963,538 £961,442 f unreduced rate .. 4 • 504 4 • 608 Average rate of interest (per cent.) < after reduction as [_ shown above .. 4-346 4-378 Unclaimed contributions held at 31st January .. .. £1,408 £1,410 * Deficiency. Cost-of-living Bonus. —The payment of this bonus has been continued in necessitous cases. For the Teachers' Superannuation Board, A. E. McKinnon, Secretary.

No. 2.—STATEMENTS IN ADDITION TO THOSE PRESCRIBED BY THE ACT AND REGULATIONS. A. Number of Contributors on the 31st January, 1939, arranged according to Percentage of Contribution.

B. Total Number of Contributors who have joined and left the Fund since its Establishment (1st January, 1906, to 31st January, 1939).

2

5 per Cent. 8 per Cent. 7 per Cent. 8 per Cent. 0 per Cent, 1 Totals. M. j F. M. j F. M. F. M. F. M. F. M. | F. M. F. Total. ' 5 ' ~ j Number at 31st January, 1938 3,370 3,878 261 283 130 182 68 87 42 27 23 6 3 894 4,463 8,357 New contributors entered during 298 455 10 26 511 5 7.. 4 1 7 319 510 829 year i Transfers from other funds .. 3 2 3 2 5 3,671 4,335 271 309 135 193 73 94 42 31 24 13 4,216 4,975 9,191 Number left during year .. 86 355 111 26 13 17 6 Hi 4 4 4 1 124 414 538 Number at 31st January, 1939 3,585 3,980 26oj 283 122 176 67 83 38 27 20 12 4,092 4,561 8,653

Number. j aid, Annual Annual Rate M. F. Total, ! Salary ' Contribution. £ £ Total entered (including net increases in salary 7,206 14,293 21,499 5,518,769 317,387 and contributions) Total discontinued .. .. .. .. 3,114 9,732 12,846 2,800,706 174,062 Total existing at 31st January, 1939 .. 4,092 4,561 8,653 2,718,063 143,325

E.—B

C. Table showing Progress of Fund since its Inception (1st January, 1906).

No. 3.—ACCOUNTS AND STATEMENTS AS PRESCRIBED BY REGULATIONS IN TERMS OF SECTION 110 OF THE PUBLIC SERVICE SUPERANNUATION ACT, 1927. (1) (A) REVENUE ACCOUNT for the Year enued 31st January, 1939. £ s. d. £ s. ki. Balance 31st January, 1938 .. .. •• 834,465 9 6 Retiring and other allowances .. .. 329,098 18 11 Contributions of members .. .. .. 145,633 14 7 Contributions refunded— £ s. d. Contributions transferred from other funds .. 291 9 4 On voluntary retirement .. 34,217 2 1.1 Additional contribution from Fiji Government in On death of members .. 5,35117 4 respect to teachers in Fiji schools .. . . 305 17 1 On lapse of membership .. 817 15 0 Government subsidy— £ s. d. ; 40,386 15 3 Under section 9, Finance Act Rebate of contributions under National Expendi(No. 2), 1937 ' •• 123,000 0 0 ture Adjustment Act, 1932, section 9 (2) to Under section 9, Finance Act, annuitants .. .. . . . . 318 8 6 1938 ~ .. 113,000 0 0 Contributions transferred to other funds .. 1,060 1 3 Under the Aot, section 112 .. 82,416 13 4* Administration expenses— £ s. d. Under the Act, section 114 .. 4,934 7 10 Commission, G.P.O. .. 637 9 6 On account of reduction of Commission, Public Trustee .. 1, 148 18 10 interest during year ended Clerical assistance .. . . 900 0 0 31 st March, 1938, under Postage and telegrams .. 100 0 0 National Expenditure Ad- Office expenses .. .. 105 13 4 iustment Act, 1932 .. 6,324 0 0 Travelling-expenses of Board 329,675 1 2 members .. .. 73 17 1 Interest— Medical fees .. .. 28 7 0 On investments .. .. 41,105 13 3 Audit fees .. .. 50 0 0 On contributions in arrears 774 6 3 —— 3,044 5 9 — Reserves for— 41,879 19 6 Losses on investments .. 2,000 0 0 Less investments written Actuarial Examination, 1939 300 0 0 down (proportion of 2,300 0 0 premium on purchase Balance at 31st January, 1939 .. .. 975,734 17 3 of investments) .. 308 4 3 41,571 15 3 £1,351,943 6 11 £1,351,943 6 11 * This amount includes £39,416 13s. 4d. received in 1937-38, and previously shown as paid in advance. COST-OF-LIVING BONUS ACCOUNT FOR THE YEAR ENDED 31ST JANUARY, 1939. £ s. d. £ s. d. Refund from Consolidated Fund . . .. 1,675 4 3 Balance due from Consolidated Fund, January, 1938 260 710 Balance due from Consolidated Fund, 31st January, Payment of bonus .. .. .. .. 1,547 19 3 1939 .. • • 133 2 10 £1,808 7 1 £1,808 7 1

2 —E. 8.

3

,mg. it? |¥ ■ss? { j£ ig e j? ■§8 ■oS '2 8. 'S a . I IS . "S3- "S3- -28. Hi :!i ' 1i I Is H s! HI ■|--tr If ! li 3a h g n -j Total number of contributors 2,182 6,858 8,680 9,964* 8,058f -8,357 8;658 Total amount of contributions £32,320 £101,594 £131,872 £115,961 £132,398 £139,591 £145,925 £2,965,908 Interest received .. £864 £48,725 £68,053 £72,682 £44,187 £42,759 £41,315 £1,195,949 Subsidy from Government .. £5,000 £63,833 £71,228 £46,917 £171,800 £54,824 £329,675 £1,992,968 Subsidy from Fiji Government .. £38 £224 £238 £233 £244 £306 £3,408 Number of allowances payable 84 1,078 1,364 1,677 2,038 2,053 2,072 .. Total amount paid on account of £3,147 £112,861 £188,552 £254,927 £323,976 £328,007 £329,096 £4,493,552 retiring and other allowances Total amount of contributions £260 £19,1*89 £26,076 £30,628 £31,481 £36,342 £41,765 £606,570 refunded and transferred Accumulated fund .. .. £34,734 £858,662 £1,134,015 £1,218,166 £964,605 £834,465 £975,491 * Highest number of contributors since commencement of Fund. t Lowest number of contributors since 31st January, 1920.

E.—B.

(B) BALANCE SHEET as at 31st .January, 1939. Liabilities. £ s. d. Assets. Fund as per Revenue Account .. .. 975,734 17 3 Amount held by Public Trustee— £ s. d. £ s. d. Retiring and other allowances due and unpaid .. 2,549 2 7 Invested . . .. 963,538 2 6 Refund of contributions due and unpaid .. 819 15 8 Uninvested . . . . 965 10 2 Administration expenses unpaid— 964,503 12 8 Commission, Post and Tele- £ s. d. Premium paid on purchase of graph Department .. 208 4 0 Investments .. .. 3,138 18 4 Clerical assistance .. .. 750 0 0 Less amount written off . . 308 4 3 Postage and telegrams .. 83 6 8 2,830 14 l Office expenses, printing, and Amounts paid to protect securities .. 216 1 4 stationery .. .. 10 4 5 Contributions of members— Audit fee .. .. .. 41 13 4 In transit .. .. .. 3,848 12 10 1,093 8 5 Due and outstanding .. 3,222 8 1 Unclaimed contributions .. .. 1,408 5 5 7,071 0 11 Amounts paid into fund in error .. 11 14 3 Interest on investmentsRent received from securities Due and outstanding .. 6,424 18 8 leased .. .. •• •• 527 7 1 Accrued, but not due .. 10,569 3 6 Reserve — ' ' 16,994 22 For commission payable to Interest on arrears of contribuPublic Trustee in respect to tions due and outstanding interest due or accrued .. 573 11 8 (contributors) .. .. .. 350 17 9 For commission to Post and Due by Consolidated Fund for Telegraph Department in re- Cost-of-living Bonus .. .. 133 2 10 spect to vouchers issued but Government Subsidy— unpaid .. .. • • 41 10 0 Additional subsidy under secFor cost of actuarial examination 114, Public Service tion . . .. • • 320 0 0 Superannuation Act, 1927, 935 1 8 not yet paid .. .. 416 22 Reserve for loss on investments— Payable in respect of allowances Balance at 31st January, 1938 2,501 11 5 outstanding at 31st January, Add Reserve, 1938-39 .. 2,000 0 0 1939 .. .. .. 107 17 5 523 19 7 4,501 11 5 Less interest written off, £1,767 3s. lid.; less capital written off £160 12s. 6d. 1,927 16 5 2,573 15 0 Vouchers issued but unpaid at 31st January, 1939 .. 22,456 4 5 Less cash in Post Office Account 15,486 0 5 6,970 4 0 £992,623 11 4 £992,623 11 4 Notes. Since the closing of the accounts for the year the Government has given a further subsidy on account of the loss suffered by the reduction of interest under the provisions of the National Expenditure Adjustment Act, 1932, during the year to 31st March, 1939. The amount for the period to 31st January, 1939, not included in the year's accounts, is £5,022. The liability under section 9 (2) of the National Expenditure Adjustment Act, 1932, as amended by section 25 of the Finance Act (No. 2). 1932-33, in respect to the rebate to those contributors who did not elect to continue to contribute on the higher rate of salary before the reductions in 1932 has not been taken into account in the foregoing statement. The contingent liability in this respect is estimated at £4,000. A. E. MCKinnon, A.R.A.N.Z., Education Department, Secretary, Teachers' Superannuation Board. Wellington, 10th May, 1939. I hereby certify that the Revenue Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby, subject to the departmental notes enfaced thereon. J. H. Fowleb, Controller and Auditor-General.

4

E.—B.

(2) STATEMENT of CONTRIBUTORS, showing Annual Rates of Salaries and Contributions as at the 31st January, 1939.

(3) PARTICULARS of CONTRIBUTIONS discontinued and Allowances granted and Refunds of Contributions made during the Year ended 31st January, 1939.

5

Number. Annual Rate of Annual Rate of p. Total Salary. Contributions. £ £ Contributors at 31st January, 1938 .. 3,894 4,463 8,357 2,604,302 137,640 New contributors entered during the year 319 510 829 123,973 6^580 ended 31st January, 1939 Transfers from other funds during the year 3 2 5 1,001 50 Net increase in salaries and contributions .. .. .. 127,152 6 616 during the year Totals .. .. .. 4,216 4,975 9,191 2,856,428 150,886 Contributions discontinued during the 124 414 538 138,365 7,561 year ended 31st January, 1939, by resignations, &c. Totals at 31st January, 1939 .. 4,092 4,561 8,653 2,718,063 143,325

Number of Annual Hate at Date of ' Contributors. Withdrawal. j Benefits. How discontinued. m. f. 1 H recurring). By death before allowance entered upon— £ £ £ s. d. £ s. d. (a) Contributions paid to 6 7 13 4.154 218 .. 3,425 9 10 personal representatives (b) Leaving widow or child 6 .. 6 2,775 139 270 0 0 1,827 3 0 By voluntary retirement .. 57 350 407 92,835 4,844 .. 34,217 2 11 By lapsed membership .. 10 15 25 5,133 300 .. 817 15 0 By transfer to other funds .. 11 .. 11 3,165 175 .. 1,060 1 3 By allowances granted on retirement — (a) Ordinary .. .. 19 33 52 20,916 1,337 9,495 2 0 (b) Medically unfit .. 13 7 20 7,627 448 3,073 16 0 }> 318 8 6 (c) Extended provisions .. 2 2 4 1,760 100 675 10 0 J By death of annuitants .. .. 589 0 0 99 4 6 Totals .. .. 124 414 538 138,365 7,561 14,103 8 0 41,765 5 0

£.—B.

(4) STATEMENT of RETIRING-ALLOWANCES (including Allowances to Widows and Children) for the Year ended 31st January, 1939.

Approximate Cost of Paper.—Preparation, not given; printing (860 copies), £10 15S.

By Authority: E. V. Paul, Government Printer, Wellington.— -1939.

Price 6V]

6

(1) (2) J 3 > * ' Details of Column (2). Retiring-allowances. Allowances to Total Allowances. ~ ~ part . culars _ Ordinary (Age or Service). 1931. Medically Unfit. Widows. Children. Number. I Number. Number. Number. Number. j j 3 ! Annual Rate. p Annual Rate, i ; 1 Annual Rate. j Annual Rate. "g Annual Rate. i j Annual Rate. M. F. £ M. F. M. F. j M. F. g M. F. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ a. d. Allowances as at 31st January, 1938 .. 6051,4482,053325,129 12 0 391 922 263,097 13 0 76 6422,660 9 0 103 11827,969 11 0 308 9,555 19 0 35 36 1,846 0 0 Allowances granted during the year at 37 49 86 13,514 8 0 19 33 9,495 2 0 2 2 675 10 0 13 7 3,073 16 0 2 62 0 0 3 5 208 0 0 retirement or decease of contributors Allowances granted during the year .. 19, 19 589 0 0.... .. .... .. .... .. 19 589 0 0 .. .. to widows and children of deceased annuitants .. .. .. Totals .. .. .. 6421,516 2,158 339,233 0 0 410 955272,592 15 0 78 6623,335 19 0 116 12531,043 7 0 329110,206 19 0 38 41 2,054 0 0 Allowances discontinued during the year 38 48 86 12,732 15 0 22 29 10,089 15 0 5 .. 1,07.3 6 0 9 1 961 15 0 16 503 19 0 2 2 104 0 0 Allowances existing at end of year .. 6041,4682,0721326,500 5 0 388 926 262,503 0 0 ; 73 66 22,262 13 0 107 124 3(7,081 12 0 j 313; 9,703 0 0 36 39 1,950 0 0 Particulars of Allowances discontinued during the Year. I | 1 | i | i How discontinued — By death .. .. .. 35 43 78 12,518 6 0 22 29 10,089 15 0 5 .. 1,073 6 0 8 1 944 6 0 13 410 19 0 .... By expiry .. .. .. 3 5 8 214 90.. .. .. .... .. 1.. 17 90 3 93 00 22 104 0 0 Totals .. .. .. 38 48 86j 12,732 15 0 22 i 29 10,089 15 0 5 .. 1 1,073 6 0 9| 1 961 15 0 16 503 19 0 2 2 104 0 0 Progress of Allowances since Establishment of Fund to the 31st January, 1939. ~ i ~ i I I ! | j Total granted .. .. .. 1,3012,1033,404465,449 16 0 7291,169 355,836 15 0 150 7235,313 2 0 226 17051,286 16 0 50514,953 3 0 196 187 8 060 0 0 Total discontinued .. .. .. 697 6351,332138,949 11 0 341 243 93,333 15 0 77 613,050 9 0 119 4621,205 4 0 192 5,250 3 0 160 148 6/110 0 0 Total existing .. .. 604 i,466! 2,07 2326, 500 5 0 388 926 262,503 0 0 73 6622,262 13 12430,081 12 0 313 9,703 0 0 36 39 1,950 0 0 : i i __i I i I ! '