EDUCATION: TEACHERS' SUPERANNUATION FUND.

Appendix to the Journals of the House of Representatives, 1940 Session I, E-08

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1940. NEW ZEALAND.

EDUCATION: TEACHERS' SUPERANNUATION FUND.

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. —THIRTY-FOURTH ANNUAL REPORT OF THE TEACHERS' SUPERANNUATION BOARD. For the Year ended 31st January, 1940. The Hon. the Minister of Education. ® IR r — Wellington, 23rd May, 1940. The Board has to submit the following report for the year ended the 31st January, 1940 :— 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, 1940, as compared with those for previous year:— 1940. 1939. Contributors on roll at 31st January .. .. .. 9,005 8,653 Increase from previous year .. .. .. .. 352 296 Retiring and other allowances — Annual rate granted during year .. .. .. £12,374 £14,103 Total annual rate at 31st January .. .. .. £326,261 £326,500 Number granted during year— On retirement .. .. .. .. .. 79 76 To widows .... .. .. .. .. 31 21 To children .. .. .. .. .. 8 8 Number discontinued during year — By death .. .. .. .. .. 75 78 By other causes .. .. .. .. .. 15 8 Number current at 31st January—Retired members .. .. .. .. 1,688 1,684 Widows and children ~ .. .. .. 390 388 Income for year — £ £ Contributions .. .. .. .. .. 158,907 146,231 Government subsidy — — Section 112 of Act .. .. .. .. 43,000 82,417* Section 114 of Act .. .. .. .. 4,952 4,934 Section 4, Finance Act (No. 2), 1939 .. .. 102,000 123,000")" Section 9, Finance Act, 1938 .. .. .. .. 113,000 Special on account of interest reductions .. .. 6,027 6,324 Total Government subsidy .. .. .. 155,979 329,675 Interest .. .. .. .. .. .. 42,699 41,315 Total income .. .. .. .. £357,585 £517,221 Expenditure— Retiring and other allowances .. .. .. 330,462 329,096 Contributions refunded or transferred .. .. 32,670 41,765 Administration expenses, &c. .. .. .. 3,112 3,335 Reserves for losses on investments .. .. .. .. 2,000 Total expenditure .. .. .. .. £366,244 £376,196

* This amount includes £39,417 previously shown as paid in advance. t S. 9, Finance Act (No. 2), 1937.

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1940. 1039. £ £ Net surplus for year .. .. .. .. .. 8,659* 141,025 Balance at credit of Fund .. .. .. .. .. 967,076 975,491 Funds invested at 31st January— At 3§ per cent. .. .. .. .. .. 5,000 5,000 At 3| per cent. .. .. .. .. .. 69,314 73,948 At 3| per cent. .. .. .. .. .. 1,200 1,200 At 4 per cent. .. .. .. .. .. 84,191 84,191 At 4J per cent. .. .. .. .. .. 414,136 416,887 At 4f per cent. .. .. .. .. .. 1,800 1,800 At 4§ per cent. .. .. .. .. .. 242,203 225,650 At 4§ per cent. .. .. .. .. .. 300 300 At 4| per cent. .. .. .. .. .. 100 100At 5 per cent. .. .. .. .. .. 200 At 5£ per cent .. .. .. .. .. .. 2,400 ai p: 4. /(reduced to 5% by the National Ex- "1 ~, Cln At 6 per cent. pendlture A^3 / ment Act _ 1932) j145,518 152,062 Total .. .. .. .. ..£963,962 £963,538 {unreduced rate .. 4-497 4-504 after reduction as shown above .. 4-346 4-346 Unclaimed contributions held at 31st January .. .. £1,763 £1,408

* 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, 1940, 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, 1940).

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I I . r ~~ , | i 5 per CeDt. 6 per Cent. 7 per Cent. 8 per Cent. 0 per Cent. Totals. M. F. I M. I F. M. j F. M. | Pi M. F. I M. | F. M. F. j Total. Number at 31st January, 1939 3,586 3,984 261 281 120 175 67 81 36 31 19 12 4,089 4,564 8,653 (adjusted) New contributors entered during 257 435 9 32 7 32 6 13 3 15 3 7 285 534 819 year Transfers from other funds .. 3 3.. 3 3,846 4,419 270 313 127 207 73 94 39 46 22 19 4,377 5,098 9,475 Number left during year .. 80 321 11 19 7 ,4 9 8 3 3 4 1 114 356 470 Number at 31st January, 1940 3,766 4,098 259 294 120 203 64 86 36 43 18 18 4,263 4,742 9,005

Number. . ait., J Annual Annual Rate M. j F. Total. Salary ' Contribution. ■■ «•' . . ' ' KB 'ItSfe' life ■] £ £ Total entered (including net increases in salary 7,494 14,827 22,321 5,870,713 336,359 and contributions) Total discontinued (adjusted) .. .. 3,231 10,085 13,316 2,923,851 180,745 Total existing at 31st January, 1940 .. 4,263 4,742 9,005 2,946,862 155,614

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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 ended 31st January, 1940. Balance 31st January 1939 975,734 17 *3 Retiring and other allowances .. 15 '? Contributions of members .. .. .. 158,180 10 2 Contributions refunded— f s d Contributions transferred from other funds . . 324 2 5 On voluntary retirement .. 25 499 14 7 Additional contribution from the Governments in— On death of members 5 573 3 8 £ s - d. On lapse of membership .. 687 a 2 iiji 382 1 10 F 31 760 j Tonga . . . . . . 20 7 5 Rebate of contributions under National Expendi- ,, .. , „ 402 9 3 ture Adjustment Act, 1932, section 9 (2), to Government subsidy— £ s. d. annuitants .. .. .. .. ~ .. Under section 4, Finance Act Contributions transferred to other funds . 717 14 4 (No. 2), 1939 .. .. 102,000 0 0 Administration expenses- £ B Under the Act, section 1.12 .. 43,000 0 0 Commission, G.P.O. .. 645 12 0 Under the Act, section 114 .. 4,952 7 4 Commission, Public Trustee 1,160 5 7 On account of reduction of Clerica l assistance .. 900 0 () interest (luring year ended Postage and telegrams .. 100 0 0 31st March, 1939, under Office expenses .. 130 1 0 National Expenditure Ad- Travelling-expenses of Board justment Act, 1932 .. 6,026 18 1 members 71 7 j. !55,979 5 5 Medfcal fees ." «12 0 Interest Audit fees .. .. 50 0 0 On investments .. .. 42,077 15 5 «ln ]s On contributions in arrears 926 11 3 Balance at 31st January, 1940 967,'075 17 11 43,004 6 8 Less investments written down (proportion of premium on purchase of investments) .. 305 10 9 42,698 15 11 £1,333,320 0 5 £1,333,320 0 5 COST-OF-LIVING BONUS ACCOUNT FOR THE YEAR ENDED 31st JANUARY, 1940. Refund from Consolidated Fund .. .. 813 15 1) Balance due from Consolidated Fund. 31st January £ d ' Balance clue from Consolidated Fund, 31st January, 1939 J 9 1940 '.. 44 22 Payment of bonus !! !! " 724 15 " £85 L 17 11 £857 17 11

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If it 'g£ '2E" I -g E? •gtj "" "by Z%i s -i 'II ®Ii | s|g ll$ ||o ir ir ii s , 11 s is 3 1 = i s if ?s_ ™ « ~B m S Total number of contributors 2,182 6,858 8,680 9,964* 8,058t 8 653 Q 005 Total amount of contributions £32,320 £101,594 £131,872 £115,961 £132,398 £145 925 £158*505 £3 124 413 Interest received .. £864 £48,725 £68,053 £72,682 £44,187 £41315 £42,'699 £1 238 648 Subsidy from Government £5,000 £63,833 £71,228 £46,917 £171,800 £329 675 £155 979 £2 148 947 Subsidy from Fiji Government .. £38 £224 £238 £233 £306 £382 £3 790 Subsidy from Tonga Government .. .. .. . go 9(1 Number of allowances payable 84 1,078 i',364 i,677 2 038 2 072 2 078 Total amount paid on account of £3,147 £112,861 £188,552 £254,927 £323,'976 £329'o96 £330*462 £4 824 014 retiring and other allowances ,w " Total amount of contributions £260 £19,189 £26,076 £30,628 £31,481 £41,765 £32 670 £639 240 refunded and transferred ' °^ Accumulated fund .. .. £34,734 £858,662 £1,134,015 £1,218,166 £964,605 £975,491 £967,076 * Highest number of contributors since commencement of Fund. t lowest number of contributors since 31st January, 1926.

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(B) BALANCE-SHEET as at 31st January, 1940. Liabilities. £ s. <1. Assets. Fund as per Revenue Account .. .. 967,075 17 11 Amount held by Public Trustee— £ s. d. £ s. d. Retiring and other allowances due and unpaid .. 2,148 10 0 Invested .. .. 963,961 16 0 Refund of contributions due and unpaid .. 1,523 1 6 Uninvested .. .. 1,580 19 .1 Administration expenses unpaid— 965,542 15 1 Commission, Post and Tele- £ s. d. Premium paid on purchase of graph Department .. 206 15 0 investments .. .. 2,830 14 1 Clerical assistance .. .. 750 0 0 Less amount written off .. 305 10 9 Postage and telegrams .. 83 6 8 2 525 3 4 Office expenses, printing, and Amounts paid to protect stationery .. .. 4 18 11 securities .. .. 193 8 9 Audit fee .. .. .. 4113 4 Contributions of members— Medical fees .. .. 18 18 0 In transit .. .. 5,237 15 11 1,105 11 11 Due and outstanding— Unclaimed contributions .. .. .. 1,762 13 7 Ordinary contributors .. 3,461 5 5 Amounts paid into fund in error .. .. 16 4 0 By Government on account Rent received from securities of contributors on leave leased .. .. .. 431 7 3 with the forces .. 351 9 6 Reserve— 9,050 10 10 For commission payable to £ s. d. Interest on investments — Public Trustee in respect to Due and outstanding .. 4,197 1 0 interest due or accrued .. 481 11 4 Accrued, but not due .. 11,121 17 2 For commission to Post and 15,818 18 2 Telegraph Department in re- Interest on arrears of contribuspect to vouchers issued but tions due and outstanding unpaid .. .. .. 43 15 0 (contributors) .. .. 275 14 11 For cost of actuarial examina- Due by Consolidated Fund for tion .. .. .. 320 0 0 Cost-of-living Bonus .. 44 22 845 6 4 Government Subsidy— Reserve for loss on investments— Additional subsidy under secBalance at Ist February, 1939 2,673 15 0 tion 114, Public Service Superannuation Act, 1927, Less interest written off, allowances unpaid at 31st £1,211 135.; less capital January, 1940 .. .. 539 8 8 written off £172 4s. 3d. .. 1,383 17 3 — 1,289 17 9 Vouchers issued but unpaid at Ist February, 1940 .. 23,131 12 8 Less cash in Post Office Account 5,840 7 0 17,291 5 8 £993,490 1 11 £993,490 1 11 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, 1940. The amount for the period to 31st January, 1940, not included in the year's accounts, is £4,837. 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, 23rd May, 1940. 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. Cyril Collins, Controller and Auditor-General.

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(2) STATEMENT of CONTRIBUTORS, showing Annual Rates of Salaries and Contributions as at the 31st January, 1940.

(3) PARTICULARS of CONTRIBUTIONS discontinued and Allowances granted and Refunds of Contributions made during the Year ended 31st January, 1940.

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Number. Annual Rate of Annual Rate of M. F. | Total. Salary. Contributions. £ £ Contributors at 31stJanuary, 1939 (adjusted) 4,089 4,564- 8,653 2,718,063 143 325 New contributors entered during the year 285 j 534 | 819 144 033 7'q7Q ended 31st January, 1940 Transfers from other funds during the year 3 3 855 43 Net increase in salaries and contributions .. .. .. 207 056 10 950 during the year Totals •• •• •• M77 5,098 9,475 3,070,007 162,297 Contributions discontinued during the 114 356 470 123 145 6 68S year ended 31st January, 1940, by resignations, &c. Totals at 31st January, 1940 .. 4,263' 4,742 j 9,005 2,946,862 155,614 i 1 ; 'I ■ 1 I 1 ■'

Number of j Annual Bate at Date of I Contributors. AVithdraw&l. Benefits. How discontinued. j j — M. F .3 Salary Contribu- Allowances: Other Pay- = y ' tions. Annual Rate. (nont" 1 recurring). By death before allowance entered upon— £ £ £ s. d. £ s d (a) Contributions paid to 2 9 11 3.984 213 .. 3 jqI 14 4 personal representatives (b) Leaving widow or child 9 .. 9 4,161 259 394 0 0 2 014 8 0 By voluntary retirement .. 60 282 342 81,401 4,247 .. 25 499 14 7 By lapsed membership .. 7 20 27 4,585 234 .' 687 3 2 By transfer to other funds ..11 6 17 4,018 220 !! 717 14 4 By allowances granted on retirement— (a) Ordinary .. 20 28 48 19,256 1,184 8,811 3 0 1 (b) Medically unfit .. 5 9 14 4,960 287 2,034 15 0 V 192 12 3 (c) Extended provisions .. .. 2 2 780 39 359 11 0 J By death of annuitants .. .. 775 q q | | Totals •• •• 114 j 356 470 123,145 6,683 12,374 9 0 32,670 8 0

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(4) STATEMENT of RETIRING-ALLOWANCES (including Allowances to Widows and Children) for the Year ended 31st January, 1940.

By Authority: E. V. Paul, Government Printer, Wellington.— 1940.

Approximate Cost of Paper.—Preparation, not given; printing 750 (copies), £12.

Price 6d.]

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(1) (2) ® Details of Column (2). Retiring-allowances. Allowances to Total Allowances. ! \ ~ - Particulars. Ordinary (Age or Service). SeflJFinance' Ac't? 1931. Medically Unfit. Widows. Children. Number. Number. Number. Number. g Number. — j Annual Kate. —— in Annual Rate. Annual Rate. Annual Rate. "g Annual Rule. — Annual Rate. M. F. £ M. I". M. F. M, F. g M. F. I 1 ! sr t\ ' . | | _ £ s. d. ! £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Allowances as at 31st January, 1939 158)7)1,4572, 064326, 572 18 0 393 922 262,761 10 0 73 66 21,726 14 0 , 107 1 22 30,623 14 0 311 9,641 0 0 34 36 1,820 0 0 (adjusted) Allowances granted during the year a% 29 50 79 11,599 9 0 19 27 8,811 3 0 . . 2 359 11 0 6 11 2,034 15 0 6 186 0 0 4 4 208 0 0 retirement or decease of contributors Allowances granted during the year .. 25 25 775 0 0.. .. .. .... .. .... .. 25 775 ,0 0.. to widows and children of deceased annuitants .. .. .. = „—, - Totals .. .. .. 636 1,532 2, i 68^338, 947 7 0 412 949271,572 13 0 73 6822,086 5 0 113 133 32,658 9 0 342 10,.-602 0 0 38 40 2,028 0 0 Allowances discontinued during the year 88 52 90 12,686 9 0 17 25 8,660 12 0 7 1 1,292 11 0 8 2 1,858 6 0 19 589 0 0 6 5 286 0 0 Allowances existing at end of year .. 598 l-,48ok078-326, 260 18 0 395 9241262,912 1 0 66 6720,793 14 0 105 |13130,800 3 0 32310,013 0 0 32 35 1,742 0 0 Particulars of Allowances discontinued during the Year. _ _ . How discontinued— i £ s. d. £ s. d. ! £ s. id. I £ s. d. £ s, d. ! £ s. d„ By death .. .. .. 31 44 75 12,194 12 0 17 25 8,660 12 0 7 1 1,292 11 0 7 .. 1,683 9 0 18 558 0 0 .. .. By expiry .. .. .. 7 *8 15 491 17 0 .. .. .. .... .. 1 2 174 17 0 1 31 .0 0 6 5j 286 0 O Totals .. „ .._ 38 52 90 12,686 9 0 17 25 8,660 12 0 7 1 1,292 11 0 j 8 2 1,858 6 0 19 589 0 0 6 _5_ 286 0 O Progress of Allowances since Establishment of Fund to the 31st January, 1940. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Total granted .. .. .. 1,3302,1783,508477,824 5 0 7481,196364,647-18 0 150 7435,672 13 0 1 232 18153,321 11 0 53615,914 3 0 200 191 8,268 0 0 Total discontinued (adjusted) .. 732 6981,430151,563 7 0 353 272101,735 17 0 84 714,878 19 0 127 5022,521 8 0 213 5,901 3 0 168 156 6,526 0 0 — _ : " — Total existing .. .. 5981,4802,078326,260 18 0 395 924262.912 1 0 66 6720,793 14 0 105 13130,800 3 0 32310,013 0 0 32 35 1,742 0 0 ' ! II