NATIONAL PROVIDENT FUND. TWENTY-EIGHTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1938.

Appendix to the Journals of the House of Representatives, 1939 Session I, H-17

H. 17

1939. NEW ZEAL A N D.

NATIONAL PROVIDENT FUND. TWENTY-EIGHTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1938.

Presented to both Houses of the General Assembly 'pursuant to the National Provident Fund Act, 1926, Sections 72 and 74.

PART I.—THE FUND (SECTION 72). 1. As will be seen by the comparative figures below, the Fund continues to provide a most useful means for persons of prudence to assure an income for their later years 1938. 1937. New contributors .. .. .. .. .. 4,064 4,902 Local bodies .. .. .. .. .. 124 124 Total contributors .. .. .. .. .. 29,439 28,972 Annuitants .. .. .. .. .. 847 736 £ £ Contributions .. .. .. .. .. 313,900 266,431 Interest .. .. .. .. .. .. 198,617 185,016 Total Income .. .. .. .. .. 653,392 583,420 Annuity payments .. .. .. .. 73,691 66,370 Other benefits .. .. .. .. .. 204,254 167,816 Total outgo .. .. .. .. .. 355,721 239,915 Funds at end of year .. .. .. .. 5,290,258 4,992,587 Rate of interest, per cent. .. .. .. .. £3 18s. 2d. £3 18s. 3d. 2. The actuarial examination of the Fund mentioned in last report has been completed, covering a period of twelve years to 31st December, 1937. The Government Actuary's report on the valuation— which is published separately as 11.17b —discloses the Fund to be completely solvent, which is highly satisfactory, particularly in view of the violent financial disturbances of the last decade. 3. Some legislative improvements —mostly for machinery purposes —are in train ; but in the Finance Act, 1938, special provision was made to deal with nurses and certain other officers whose employment is liable to change as between the General Government and local authorities. The effect is to remedy long-standing anomalies as to continuity of service. PART lI.—STATE SUBSIDY (Section 74). The amount of subsidy paid by the State for the year was £76,221 17s. 9d. W. Lee Martin, Chairman of the Board. R. Sinel, Superintendent of the Fund. Wellington, 3rd August, 1939.

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NATIONAL PROVIDENT FUND. Revenue Account foe the Yeae ended 31st Decembee, 1938. Amount of Fund at beginning of year (Ist £ s. d. National Provident Fund Act, 1926 — £ s. d. January, 1938) .. .. ... 4,992,586 18 5 Maternity claims (section 19) .. .. 4,032 0 0 National Provident Fund Act, 1926 — Maternity claims (section 43) .. .. 36,570 0 0 Contributions .. .. .. •• 313,900 3 0 Refund of contributions on lapse, reduction, Interest .. .. .. .. 198,616 16 6 and withdrawal (sections 11, 12, and 13) .. 96,736 11 8 Fines (section 11 (4) ) .. .. .. 377 10 7 Refund of contributions in lieu of annuity Government contribution under Act (sec- (section 14) .. .. .. .. 11,240 13 6 tions 52 and 74 (2) ) .. .. .. 76,221 17 9 Incapacity allowances (sections 17 and 18), Refund of maternity claims by the State including contributions waived on incapacity (sections 42 (2) and 70) .. .. 40,602 0 0 (£1,577 Is. 3d.) 10,305 19 6 Contributions overpaid on exit .. .. 61 15 10 Death: Refund of contributions (sections Beneiits refunded on exit (sections 11 to 16 15 (5) and (16) .. .. .. 31,830 16 4 and 28) .. .. .. .. 21,084 11 II Death: Allowances on account of widows Miscellaneous receipts .. .. ... 0 2 10 and children (section 15) .. .. 13,476 5 4 Refunds unclaimed .. .. .. 2,527 4 8 Annuities (sections 13 and 48) .. .. 73,691 0 6 Refund of contributions overpaid on exit .. 61 15 10 Public Trustee: Charges .. .. .. 2,675 17 3 Legal expenses .. .. .. .. 100 7 4 Investment Fluctuation Account .. .. 75,000 0 0 Amount of Fund at end of year (31st December, 1938) .. .. .. .. 5,290,257 14 3 £5,645,979 I 6 £5,645,979 1 6 Balance-sheet as at 31st Decembee, 1938. Liabilities. £ s. d. Assets. Fund as per Revenue Account .. .. 5,290,257 14 3 In hands of Public Trustee— £ s. d. Post Office .. .. •• •• 739 2 9 Invested .. .. .. .. 5,250,796 4 3 National Provident Fund Act, .1926 — Uninvested .. .. .. .. 13,649 12 8 Claims due and in course of payment*— Balances in transit .. .. .. 9, 955 6 3 Maternity (sections 19 and 43) .. .. 3,095 8 9 National Provident Fund Aot, 1926 — Death: Refunds (section 16) .. .. 1,487 4 2 Contributions outstanding or in course of Death: Refunds (section 15 (5) ) .. 1,251 18 0 transmission* — Death: Allowances (section 15) .. 348 11 11 (a) Contributions due but not overdue .. 21,231 9 7 Annuities (sections 13 and 48) .. .. 2,633 I 9 (b) Contributions overdue .. .. 1,650 17 8 Allowances (section 17) .. •• 366 7 10 Government subsidy due under Act* (sections 52 Refunds of contributions in lieu of annuity and 74 (2) ) .. .. .. .. 76,221 .17 9 (section 14).. .. •• •• 919 14 8 Refund due in respect of maternity claims* Public Trustee: Charges* .. .. .. 1,153 18 9 (sections 42 (2) and 70) .. .. .. 4,374 0 0 Refunds in Suspense .. .. 62,763 0 7 Fines due* (section 11 (4) ) .. .. 103 7 1 Suspense Account .. • ■ ■ • 1,768 9 3 Interest due* .. .. .. .. 9,386 13 10 Contributions prepaid .. .. 10,755 11 0 Interest accrued but not due* .. .. 62,471 4 11 Investment Fluctuation Reserve .. .. 72,300 10 4 £5,449,840 14 0 £5,449,840 14 0 * Included in ltevenue Account. R. Sinel, Superintendent. Wellington, 30th June, 1939. R. M. Poeteous, A.R.A.N.Z., Accountant. 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. — J. H. Fowlee, Controller and Auditor-General.

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(2) Numerical Statement for the Year ended 31st December, 1938.

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Numbers. Class 1. Class 2. Class 3. Class i. Class 5. 4<xnw7.it.p Cnntributtrms. Pension Rate, 10s. Pension Rate. 20s. Pension Rate, 30s. Pension Kate, 40s Pension Rate: Other. ° M. j F. [ T. M. F. T. M. | F. T. SI. j F j T. SI. F. T. SI. F. j T. £ s. d. Number of contributors at commence- 16,874 741 17,615 2,129 331 2,460 228 42 270 496 89 585 4,987 3,055 8,042 24,714 4,258 28,972 275,395 8 4 ment of year New entrants during the year .. 1,602 210 1,812 248 27 275 29 7 36 41 2 43 590 1,308 1,898 2,510 1,554 4,064 37,595 4 0 Transfer from another class .. 102 8 110 178 18 196 39 7 46 49 3 j 52 6 . . 6 374 36 410 15,896 7 4 Increase due to adjustment on age- .. .. .. .. .. . • . • • • .. • • .. .. .. .. .. . • • • • • 165 3 4 error, &c. Total .. .. .. 18,578 959 19,537 2,555 376 2,931 296 56 352 586 94 680 5,583 4,363 9,946 27,598 ! 5,848 33,446 329,052 3 0 Discontinuances, &c. (as per detailed 1,959 132 2,091 311 45 356 53 15: 68 65 12 77 366 1,049 1,415 2,754 1,253 4,007 33,914 10 4 statement below) ' - 1 ; - [ 1 i ' - 1 Total at end of year .. 16,619 827 17,446 2,244 1 331 2,575 243 41 284 521 82 603 8,531 24,844 4,595 29,439 295,137 12 8 Details of Discontinuances, &c., during the Year. Death .. .. .. j 51 3 i 54 5 : 5 . . 1 1 .. .. .. 29 j 6 35 85 10 95 2,952 16 0 Notice of withdrawal .. .. 1,415 101 1,516 165 26 191 25 8 33 36 5 41 262 1,016 1,278 1,903 1,156 3,059 24,913 5 4 Lapse and cancellation .. .. 252 3 255 21 21 .. .. .. .. 1 1 .. .. .. 273 4 277 898 10 4 Attainment of pension age .. 44 11 55 I 4 5 9 2 2 2 2 4 69 27 96 119 47 166 3,576 4 4 Transfer to another class .. .. 197 14 211 j 116 14 130 28 4 32 27 4 31 6 6 374 36 410 1,538 1 8 Decrease due to adjustment on age- .. .. • • • • . • • • • • • • • • • • • • • • • • • • • • • • • • • • 35 12 8 error, &c. Total .. .. .. 1,959 132 2,091 311 j 45 356 53 j 15 65 12 77 366 [1,049 ' 1,415 2,754 1,253 4,007 33,914 10 4 Numerical Progress since Establishment. Total entered .. .. .. 60,529 4,763 65,292 9,664 1,236 ; 10,900 1,031 159 1,190 1,317 252 1 1,569 10,194 il3,292 i 23,486 82,735 119,702102,437 Total transferred from other classes 4,411 235 4,646 2,811 227 3,038 511 67 578 741 56 797 105 3 108 8,579 i 588 9,167 64,940 4,998 69,938 12,475 1,463 13,938 1,542 226 1,768 2,058 308 2,366 10,299 13,295 23,594 91,314 20,290111,604 Total discontinued .. .. 45,425 3,977 49,402 6,022 879 6,901 638 106 744 771 164 935 5,035 9,981 15,016 57,891 15,107 72,998 Total transferred to other classes .. 2,896 194 3,090 4,209 253 1 4,462 661 79 740 766 62 828 47 47 8,579 588 9,167 48,321 4,171 52,492 10,231 1,132 11,363 1,299 185 1,484 1,537 226 1,763 5,082 9,981 15,063 66,470 15,695 82,165 Total contributors on books at 31st 16,619 827 17,446 2,244 331 2,575 243 41 j 284 521 82 603 5,217 13,314 8,531 24,844 1 4,595 29,439 295,137 12 8 December, 1938 i I j i

H. -17.

NATIONAL PROVIDENT FUND ACT, 1926. Direct Contributors. (3) Statement of Retiring and other Allowances for the Year ended 31st December, 1938.

Other Contributors. (3a) Statement of Retiring and other Allowances for the Year ended 31st December, 1938.

Approximate Cost of Paper. — Preparation, not given ; printing (660 copies), £7 IDs.

i' By Authority : K. V. Path,, Government Printer, Wellington.—l 939. Price-3d.] ■ ; : , ; :.

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On Death. On Incapacity. 0n A^e nt °' Total other Ainount. Amount. — ££. dumber. ™ M. f. £ s. d.j m. J\ £ s. d. m. i. £ s. d. m. f. £ s. d. Allowances existing at be- 179 1 9,243 0 0 35 j .. 1,384 10 0186 83 11,965 14 0 400 84 22,593 4 0 ginning of year Granted during the year 26 .. 1,482 0 oj 27 .. 1,209 0 0 44 20 2,251 10 0 97 20 4,942 10 0 Total ..205 1 10,725 0 0 62 .. 2,593 10 0 230 103 14,217 4 0*497 104 27,535 14 0 Discontinued during the 23 .. 1,482 0 0 18 .. 936 0 0 3 1 130 0 0 44 1 2,548 0 0 year (as per statement below) Existing at end of year .. 182 1 9,243 0 0 44 .. 1,657 10 0 227 102 14,087 4 0 453 103 !24,987 14 0 Particulars of Retiring and oilier Allowances discontinued during the Year. Discontinued by death .. j .. .. .. (5 .. I 214 10 0 3 1 130 0 0 8 | 1 344 10 0 Expiry .. .. | 23 .. 1,482 0 o] 13 .. j 721 10 0 .. .. .. 36 j .. 2,203 10 0 Total .. j 23 .. 1,482 0 o! 18 .. j 936 0 0 3 1 130 0 0 44 J 1 2,548 0 0 i I I

On TWh On Medical Tlnfltnm 0n Attainment of Totnl Retiring and other On Death. on Medical untltnosi. Retiring Age. Allowances. Number Annual Number Annual Number Annual Number ' Annual JNumuer. Amount. ««mDer. Amount. "umDer. Amount. Number. , Amount. I M. F. I £ 8. d. M. ; F. £ S. d.l M. : F. £ S. d. M. F. £ a. d. Allowances existing at be- 172 .. 3,893 0 0 67 | 13 17,229 19 0363 104 56,156 10 0602 117 67,279 9 0 ginning of year Granted during year .. 22 .. j 618 0 0 11 5 1,796 16 0 55 I 20 11,307 0 0 88 25 13,721 16 0 Total ..194 .. 4,511 0 0 78 1 18 9,026 15 0418 124 67,463 10 0690 142 81,001 5 0 Discontinued during year 8 .. 246 0 0 17 j 2 2,416 19 0 20 i 4 2,619 4 0 45 6 5,282 3 0 (as per statement below) Existing at end of year .. 186 .. '4,265 0 01 61 16 6,609 16 0398 |l20 6 0 645 136 75,719 2 0 Particulars of Retiring and other Allowances discontinued during the Year. Discontinued by death .. 4 j .. I 90 0 0* 6 .. 669 0 0] 20 4 2,619 4 01 30 41 3,378 4 0 Expiry .. .. 4 j .. 156 0 0 11 j 2 1,747 19 0 15 2 I 1,903 19 0 Total : 8 I .. I 246 0 0 17 I 2 12,416 19 o! 20 | 4 2,619 4 o| 45 ! 6 | 5,282 3 0 i 1 I ! L J „L Li NATIONAL PROVIDENT FUND. Progress of Retiring and other Allowances since the Establishment of the Fund to 31st December, 1938. On Death On incapacity Alttce"'! N-'- A A ZZi, ?«*»*. Amount. Number. | Number. — M. F. £ s. d. M. I F. £ s. d. M. | F. I £ s. d. m. f. £ s. d. Totalgranted ..623 1 30,495 10 0573 j 33 38,351 6 0871 243:103,072 14 02067 277 171,919 10 0 Total discontinued .. 255 .. 16,987 10 0468 J 17 30,084 0 0 246 21 | 24,141 4 0 969 38 71,212 14 0 Total existing at 31st 368 1 13,508 0 0ll05 16 8,267 6 0 825 222 78,981 10.01098 239 100,706 16 0 December, 1938 I