GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Appendix to the Journals of the House of Representatives, 1947 Session I, D-05

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1947 NEW ZEALAND

GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Laid before Parliament in pursuance of Section 124 of the Government Railways Act, 1926

The Board has the honour to transmit, for the information of Parliament, the following report upon the transactions of the Government Railways Superannuation Fund for the year ended 31st March, 1947. The Income and Expenditure Account, Balance-sheet, and statements in connection therewith will be found appended. Amendments to Pensions. —On 12th October, 1946, the Superannuation Amendment Act, 1946 (No. 36), was passed, taking effect as on and from Ist January, 1946, the main amendment to the Government Railways Act, 1926, being the provision made whereby existing retiring-allowances shall not be less than if computed on the basis of the Superannuation Amendment Act, 1945. The expenditure for the year exceeded the income by £607,713. Members'. Contributions. —The income under this heading showed a decrease of £32,630. The number of contributors at 3, 5, 6, 7, 8, 9, and 10 per cent, decreased by 109, 2,252, 397, 139, 44, 21, and 10 respectively. Contingent Contributors. —During the year 35 casual employees elected to contribute to the Fund so that in the event of their subsequently being permanently appointed they would not be faced with a liability in respect of service prior to permanent appointment. The total number of employees so contributing at the end of the year under review was 162, and the amount standing to their credit £8,595. Subsidy.—The sum of £299,547 was paid into the fund by the Working Railways Department, and the sum of £74,000 was received from the Treasury in accordance with the provisions of section 3 of the Finance Act, 1942. Interest.—The interest earned amounted to £51,778, a decrease of £1,384 as compared with the previous year. Table D, Statement of Investments, shows that the average rate of interest on securities held at the 31st March, 1947, was 4-278 per cent., and the average rate earned on the mean funds for the year 6-628 per cent., as against 4-201 per cent, and 4*772 per cent, respectively for the previous year.

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Life Allowances.—The expenditure on account of life allowances to members amounted to £768,293. The average of the 397 allowances granted during the year was £234 18s. 6d., and the average of the 136 allowances discontinued was £203 18s. 7d. Thirty-seven contributors have made elections in favour of dependants in accordance with the provisions of section 13 of the Finance Act (No. 2), 1940. Allowances to Widows and Children.—Prior to the passing of the Finance Act (No. 2), 1940, allowances to widows and children were paid only in cases where contributors died before retiring on a pension. Section 14 of this Act makes provision for payment of annuities to widows and children whether contributors die before or after becoming entitled to a retiring-allowance. The expenditure on account of allowances to widows and children was £86,155, £46,813 to widows and children of contributors who died before retiring, and £39,342 to widows and children of contributors who died after retirement. The sum of £54,335 was received from the Working Railways Account during the year on account of the increased payments to widows and children as provided in section 114, Part 111, of the Government Railways Act, 1926. Cost-of-living Bonus—A cost-of-living bonus was granted to superannuitants payable from Ist October, 1943, at a maximum rate of £26 per annum, reducible £1 for £1 for income in excess of £335 per annum. The sum of £40,608 was paid during the year. The whole cost of this bonus is borne by the Working Railways Account. Refunds of Total Contributions.—During the year the sum of £143,228 was paid from the fund in making refunds of contributions to 1,462 contributors who have resigned the Railways Service. This amount represents an increase of £70,379 compared with the previous year. Withdrawals of Total Contributions.—The amount of £279,400 was paid during the year to 1,679 contributors who have exercised their option to withdraw their contributions from the fund under the provisions of section 23 of the Superannuation Amendment Act, 1945. Accumulated Funds.—The balance of the accumulated funds decreased from £1,080,779 in 1946 to £473,090 in 1947. This depletion of funds is the result of the refunds of contributions to members, increased pensions and allowances, and to a reduction in contributions. At the 31st March, 1947, there were 3,418 members, 1,502 widows, and 391 children, making a total of 5,311 persons actually on the Fund, involving an annual liability of £811,950. R. Semple Chairman, Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1947

Particulars of Retiring and other Allowances discontinued during the Year

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— Section 102: On Attainment of Retiring Age or for Length of Service. Section 111: Medically Unfit. Section 113 : Widows. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount at £52 per Annum. M. P. Total. M. P. Total. Retiring and other allowances— Existing at beginning of year .. Granted during year at retirement Granted during year after retirement including increases to 2,279 257 i 1 1 2,279 258 £ s. d. 509,061 15 0 67,964 9 0 67,765 6 0 877 139 1 878! 139 £ s. d. 118,104 15 5 25,301 0 0 23,937 2 0 1,409 33 106 £ s. d. 73,268 0 0 1,716 0 0 5,512 0 0 Total Discontinued during year Existing at end of year 2,536 103 2,537 103 644,791 10 0 22,308 6 0 1,016 33 1 1,017 33 167,342 17 5 5,425 19 0 1,548 46 80,496 0 0 2,392 0 0 2,433 2,484 622,483 4 0 983 1 984 161,916 18 5 1,502 78,104 0 0 | Section 113 : Children. Total Retiring and other Allowances. Number. Annual Amount, at £26 per Annum. Number. Annual Amount. M. P. Total. M. P. Total. Retiring and other allowances — Existing at beginning of year .. Granted during year at retirement Granted during year after retirement including increases to retiring allowances Total Discontinued during year Existing at end of year 217 17 2 194 18 5 411 35 7 £ s. d. 10,686 0 0 910 0 0 182 0 0 3,373 413 2 1,604 .52 111 4,977 465 113 £ s. d. 711,120 10 5 95,891 9 0 97,396 8 0 236 30 217 32 453 62 11,778 0 0 1,612 0 0 3,788 166 1,767 78 5,555 244 904,408 7 5 31,738 5 0 206 185 391 10,166 0 0 3,622 1,689 5,311 872,670 2 5

— Section 102 : On Attainment- of Retiring Age or for Length of Service. Section 111: Medically Unfit. Section 113: Widows. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount at £52 per Annum. M. F. Total. M. P. Total. How discontinued— By death By expiry Total 103 103 £ s. d. 22,308 6 0 33 33 £ s. d. 5,425 19 0 35 11 £ s. d. 1,820 0 0 572 0 0 103 103 22)308 6 0 33 33 5,425 19 0 46 2,392 0 0 .... . - Section 113: Children. Total Retiring and other Allowances. Number. Annual Amount, at £26 per Annum. Number. Annual Amount. M. V. Total. M. F. Total. How discontinued — By death By expiry Total 30 32 62 £ s. d. 1,612' 0 0 136 30 35 43 171 73 £ s. d. 29,554 5 0 2,184 0 0 30 32 62 1,612 0 0 166 78 244 31,738 5 0

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Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1947

* Total allowances granted and discontinued include 200 widows at £lB and 468 at £3l, and 693 children at £l3, exeunt prior to increase of allowances. t These figures include 134 allowances totalling £15,620 lis. per annum granted under section 14, Finance Act, 1931. Of these allowances, 108 were, as provided for by section 27, Statutes Amendment Act, 1936, increased, by £3,553 Bs., and 97 existing at 31st March, 1945, as provided for by section 31 (1) of Superannuation Amendment Act, 1945, by £2,010 Bs.

Table B. —Statement of Contributors

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Section 102 : On Attainment of Retiring Age or for Length of Service. Section 111: Medically Unfit. Section 113: Widows. Number. i Annual Number. Annual NumAnnual Amount, M. F. Total.! I Amount. M. F. Total. Amount. ber. at £52 per Annum. Total granted* t Total discontinued* 4,890 2,457 3 2 i £ s. d. 4,893 979,407 17 2 2,459356,924 13 2 1,663 680 2 1 1,665 681 £ s. d. 237,891 5 3 75,974 6 10 2,276 774 £ s. 101,829 0 23,725 0 d 0 0 Total existing at 31st March, 1047 2,433 1 2,434j622,483 4 0 983 1 984 161,916 18 5 1,502 78,104 0 0 Section 113 : Children. Total Retiring and other Allowances. Number. Annual Amount, at Number. Annual M. F. Total. £26 per Annum. M. F. Total. Amount. Total granted*! Total discontinued* .. 1,244 1,038 1,212 1,027 2,456 2,065 £ s. 54,847 0 44,681 0 d. 0 0 7,797 4,175 3,493 1,804 11,290 5,979 1 £ s. ,373,975 2 501,305 0 d. 5 0 Total existing at 31st March, 1947 206 185 391 10,166 0 0 3,622 1,689 5,311 872,670 2 5 Less amount receivable from the Working Railways Account 60,720 0 0 £811,950 2 5

— 3 per Cent. 4 per Cent. 5 per Cent. 6 per Cent. 7 per Cent. 8 per Cent. 9 per Cent. 10 per Cent. Total. Contributors at commencement of year New contributors during year Total Contributors discontinued during year Total contributors at 31st March, 1947 234 14,531 323 1,479 50 451 18 176 3 83 31 16,985 394 234 109 14,854 2,575 1,529 447 469 157 179 47 83 21 31 10 17,379 3,366 125 12,279 1,082 312 132 62 21 14,013

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Table C.—Progress of the Fund Balance forward. Allowances granted. £ s. d. £ s. d. 1903 to 1935 .. .. .. .. .. 658,575 16 5 1936 .. .. .. .. .. 1,246,984 711 14,637 7 0 1937 .. .. .. .. .. 1,250,860 10 2 13,863 2 0 1937 (increased allowances, section 27, Statutes Amendment Act, 1936) .. .. 3,553 8 0 1938 .. .. .. .. .. 1,272,724 7 5 24,622 14 0 1939 .. .. .. .. .. 1,282,354 0 2 36,872 9 0 1940 .. .. .. .. .. 1,279,836 2 8 51,808 12 0 1941 .. .. .. .. .. 1,248,383 22 58,157 10 0 1942 .. .. .. .. .. 1,187,537 1 10 47,033 1 0 1943 .. .. .. .. .. 1,164,045 0 0 27,466 4 0 1944 .. .. .. .. .. 1,151,546 6 9 66,188 14 0 1945 .. .. .. .. .. 1,130,936 6 0 71,088 16 0 1946 .. .. .. .. .. 1,080,778 12 11 70,410 13 0 1946 (increased allowances, Superannuation Amendment Act, 1945) .. .. .. 36,408 19 0 1947 .. .. .. .. .. 473,089 15 9 101,585 9 0 1947 (increased allowances, Superannuation Amendment Acts, 1945 and 1946) .. .. 91,702 8 0 1,373,975 2 5 Less members died, &c. . . .. .. 501,305 0 0 Less liability of Working Railways Account 60,720 0 0 562,025 0 0 Annual liability at 31st March, 1947 .. .. £811,950 2 5

Table D.—Statement of Investments

1947. 1946. Per Cent. Per Cent. Average rate of interest on securities held at 31st March .. 4*278 4*201 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest .. .. .. .. 5*322 4*772

Funds invested at 31st March. 1947. 1946. £ s. d. £ s. d. At 3 per cent. 46,425 0 0 „ 3-25 „ 1,700 0 0 „ 3-375 25,000 0 0 25,000 0 0 ,, 3*5 ,, 21,143 17 4 152,646 14 4 „ 4 „ 89,431 8 0 212,070 10 0 „ 4-25 „ 139,928 7 4 400,753 13 5 „ 4-4 „ 335 0 0 335 0 0 „ 4-5 „ 80,711 1 5 111,992 10 11 „ 4-75 „ 869 5 9 „ 5 „ 65,85i 16 1 76,752 8 10 „ 6 „ 1,238 15 0 1,316 8 4 Cash in hand 2,559 0 0 9,119 2 1 426,199 5 2 1,038,980 13 8

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Statement of Accounts Revenue Account for the Year ended 31st March, 1947 Expenditure £ Income £ Retiring-allowances to members .. .. .. .. 768,293 Members'contributions .. .. .. .. 279,960 Allowances to widows and children .. .. .. 86,155 Members'contributions on account of casual service .. 15,518 Cost-of-living bonus .. .. .. .. .. 40,608 Fines .. .. .. .. .. .. 328 Refund of total contributions .. .. .. .. 143, 228 Subsidies— Refund of contributions in excess of allowances drawn by From Consolidated Fund (section 3, Finance Act (No. 2), 1942) 74,000 deceased beneficiaries .. .. .. .. 1,000 From Working Railways Account (section 119, £ Transfers to other funds .. .. .. .. 4,321 Government Railways Act, 1926) .. .. 200,000 Earthquake damage insurance .. .. .. .. 67 From Working Railways Account: Increased allowWithdrawal of total contributions .. .. .. 279,400 ances to annuitants compulsorily retired (section Administration charges— 31, Superannuation Amendment Act, 1945) .. 4,604 Travelling-expenses of Board members .. .. .. 80 From Working Railways Account: Increased Public Trust Commission .. .. .. .. 1,260 allowances to widows and children (section 114, Audit fee .. .. .. .. .. 50 Government Railways Act, 1926, and sections 28 v Salaries .. .. .. .. .. .. 3,816 and 29, Superannuation Amendment Act, 1945) 54,335 Postages .. .. .. .. .. .. 527 From Working Railways Account: Cost-of-living Printing and stationery .. .. .. .. 167 bonus .. .. .. .. .. 40,608 299,547 New Zealand Railway Tradesmen's Association .. .. 15 New Zealand Engine-drivers, Firemen, and Cleaners' Association .. .. .. .. .. 19 Amalgamated Society of Railway Servants .. .. 14 New Zealand Railway Officers' Institute .. .. ,25 Interest— Investments .. .. .. .. 45,582 Treasury Department.. .. .. .. 6,196 51,778 Commission on Government Life Insurance collections .. 55 Balance carried down, being excess of expenditure over income for the year .. .. .. .. .. 607,713 £1,328,972 £1,328,972 £ £ Balance brought down .. .. .. ... .. 607,713 Accumulated funds brought forward on Ist April .. .. 1,080,779 Balance, accumulated funds as at 31st March .. .. 473,090 Amounts unclaimed written off— Contingent contributions .. .. .. .. 21 Rebates .. .. .. .. .. .. 3 £1,080,803 £1,080,803

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Balance-sheet as at 31st March, 1947 Liabilities £ Assets Accumulated funds, as per Revenue Account .. .. 473,090 Investment Account , OQ RAa Casual employees' contingent contributions .. .. 8,595 Investments: Government stock and mortgages 2559 Retiring and other allowances due (not paid)— 1 Cash in hand .. - • • • • • > 199 Members .. .. .. .. . • • • 407 Widows and children .. .. .. .. • • 787 Current Account Refund of contributions authorized (not paid) .. 9,317 Cash in hand .. •• •• •• •• '4.QQ Withdrawal of contributions authorized (not paid) .. .. 7,292 Contributions in transit .. •• *' 1 170 Refund of contributions in excess of allowances drawn by Contributions due by Army, Navy, and Air Force epar 1/495 deceased beneficiaries (not paid) .. .. •• 595 Contributions outstanding .. •• •• •• 17 Transfers to other funds authorized (not paid) .. .. 38 Contributions due by members m respect of casua servic Interest paid in advance .. .. . • • • 83 Working Railways— Public Trustee .. .. .. . • • • 317 On account of increased allowance to annuitants as provided Reserve for bad and doubtful debts .. .. -• 3,000 for by section 31, Superannuation Amendment Act, 1945 Rebates of contributions (National Expenditure Adjustment On account of cost-of-living bonus •• Act 1932) 287 On account of additional allowances to widows and children Sundry creditors "!! " 167 (section 114, Government Railways Act 1926, and sections 28 and 29, Superannuation Amendment Act, 1945) .. 4,o»o Interest due not paid .. .. •• •• ® > J® j Interest accrued but not due .. •• •• •• oa'aaa Working Railways subsidy in transit .. •-- • ' 1 1 j Sundry debtors .. • • • • • • • • £503,975 £503,975 R. Semple, E. H. Arlington, A.R.A.N.Z. Chairman of the Government Railways Acting Chief Accountant, New Zealand Railways. Superannuation Fund Board. 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. P. Rutherford, Controller and Auditor-General. Approximate Cost of Paper.—Preparation, not given ; printing (1,063 copies), £24.

By Authority: E. V. Paul, Government Printer, Wellington.— 1947. Price 6d.~\

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