NATIONAL PROVIDENT FUND THIRTY-SEVENTH ANNUAL REPORT OF THE BOARD FOR THE YEAR ENDED 31st DECEMBER, 1947

Appendix to the Journals of the House of Representatives, 1948 Session I, H-17

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1948 NEW ZEALAND

NATIONAL PROVIDENT FUND THIRTY-SEVENTH ANNUAL REPORT OF THE BOARD FOR THE YEAR ENDED 31st DECEMBER, 1947

Presented to both Houses of the General Assembly pursuant to the National Provident FundAct, 1926, Sections 72 and 74

PART I.—THE FUND (Section 72) 1. Summarized figures for the three annual periods terminating on the 31st December, 1937, 1942, and 1947, form a ready basis for comparative analysis, and while the statistics disclose a further slight recession in numerical membership, the upward trends in the annual payments of contributions and benefits have continued : 1937. 1942. 1947. New contributors .. .. .. 4,902 2,687 2,614 Total contributors .. .. .. 28,972 28,508 25,722 Pensioners .. .. .. .. 736 1,229 1,983 Income— £ £ £ Contributions .. .. .. 266,431 342,234 622,859 Interest (including fines) .. .. 185,016 248,416 306,023 Total income (including State subsidy) .. 583,420 695,648 1,099,777 Outgo— Pensions .. .. .. .. 66,370 104,379 168,376 Other benefits .. .. .. 167,816 158,043 295,488 Total outgo .. .. .. .. 239,915 266,149 467,425 Funds at end of Year .. .. .. 4,992,587 6,862,358 9,586,611 Effective interest earnings (per cent.) .. £3 18s. 3d. £3 15s. 9d. £3 7s. Od. 2. In terms of the 1946 legislation, the Board introduced a new Standard Superannuation Scheme which became available to permanent employees of all local authorities on the Ist August, 1947 ; although a considerable volume of detailed assessments was dealt with in the period under review, there remained a large carryover which will be reflected in the accounts for the following year. The additional contributions payable to secure credits for past service and also additional salaries which cause the disparity between the nominal annual contributions and contributions payable as per Revenue Account are also reflected in the abnormal amount stated as contributions due at the close of the year; arrangements have been made to collect such arrears of contributions by regular monthly instalments.

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3. During the year two important legislative amendments affected tlie public portion of the Fund—firstly, tlie weekly rate of allowances payable in respect of children, on the incapacity or death of the contributor, which had remained at 7s. 6d. from the initiation of the Fund in 1910, was increased to 10s., and the period for payment extended to age sixteen; and, secondly, the income barrier which precluded persons with incomes in excess of £3OO per annum from becoming contributors to the Fund was eliminated. It is hoped that with the improved employment situation staff will shortly be available to bring the benefits of the Fund more directly before the public. The annual pensions payable on maturity —i.e., attainment of age sixty and benefits payable to dependants of direct or personal contributors —have risen from £22,500 in 1937 to over £56,500 in 1947, clearly indicating the growing appreciation of the value of the Fund and its increasing importance in New Zealand's national economy. 4. Tribute is paid to the efficient manner in which the depleted staff have responded to the calls made both on their energy and time during the twelve months under review. W. Nash, Chairman of the Board. W. L. Comrie, Superintendent of the Fund. Wellington, 9th November, 1948.

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NATIONAL PROVIDENT FUND (1) Revenue Account for the Year ended 31st December, 1947 Amount of Fund at beginning of year £ National Provident Fund Act, 1926 £ (Ist January, 1947) .. .. 8,985,360 Refund of contributions on lapse, National Provident Fund Act, 1926 reduction, and withdrawal (sees. Contributions.. .. .. 622,859 11, 12, and 13) .. .. 180,397 Interest .. .. .. 305,566 Refund of contributions in lieu of Fines (sec. 11 (4) ) .. . . 457 pension (sec. 14) .. .. 25,380 Government contribution under Act Incapacity allowances (sees. 17 (sees. 52 and 74 (2)) .. 121,334 and 18), including contributions Contributions over-paid on exit 704 waived on incapacity (£7l) .. 13,399 Benefits refunded on exit (sees. Death: Refund of contributions 11 to 16 and 28) .. .. 26,219 (sees. 15 (5) and 16) .. .. 44,830 Miscellaneous receipts .. .. 2 Death: Allowances on account of Refunds unclaimed .. .. 2,346 widows and children (sec. 15) .. 31,483 Premiums on conversion .. .. 20,290 Pensions (sees. 13 and 48) .. 168,376 Refund of contributions overpaid on exit .. .. .. .. 704 Public Trustee : Charges .. .. 2,765 War-risk insurance premiums .. 92 Investment Fluctuation Account .. 31,100 Amount of Fund at end of year (31st December, 1947) .. .. 9,586,611 £10,085,137 £10,085,137 Balance-sheet as at 31st December, 1947 Liabilities . £ Assets £ Fund as per Revenue Account .. 9,586,611 In hands of Public Trustee— Disbursement Account .. .. 3,312 Invested .. .. .. 9,348,449 National Provident Fund Act, 1926 Uninvested .. .. .. 19,085 Claims due and in course of pay- Post Office .. .. .. 39,734 ment*— Balances in transit .. .. 47,716 Death : Refunds (sec. 16) .. 830 National Provident Fund Act, 1926 Death : Refunds (sec. 15 (5)) .. 1,128 Contributions outstanding or in Death: Allowances (sec. 15) .. 207 course of transmission*— Pensions (sees. 13 and 48) .. 950 (a) Contributions due but not Refunds of contributions in lieu overdue .. .. 168,796 of pension (sec. 14).. .. 2,803 (b) Contributions overdue .. 3,038 Public Trustee : Charges* .. 819 Government subsidy due under Act* Refunds in Suspense .. .. 93,605 (sees. 52 and 74 (2) ) .. .. 121,334 Suspense Account .. .. 6,268 Fines due* (sec. 11 (4) ) .. .. 192 Contributions prepaid .. .. 31,982 Interest due* .. .. .. 3,071 Investment Fluctuation Reserve .. 100,000 Interest accrued but not due* . .. 79,100 £9,828,515 £9,828,515 ♦lncluded in Revenue Account. W. L. Comrie, Superintendent. R. S. Brown, Accountant. Wellington, Bth November, 1948. 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.

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(2) Numerical Statement for the Year ended 31st December, 1947

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— Numbers. Annual Contributions. £ Class 1. Pension Rate, 10s. Class 2. Pension Rate, 20s. Class 3. Pension Rate, 30s. Class 4. Pension Rate, 40s. Class 5. Superannuation. Aggregate. M. P. T. M. P. T. i M. | P. T. M. P. T. M. P. T. M. P. T. Number of contributors at commencement of year New entrants during the year Transfer from another class Increase due to adjustment on age-error, &c. Total Discontinuances, &c. (as per detailed statement below) Total at end of year Death Notice of withdrawal Lapse and cancellation .. Attainment of pension age Transfer to another class Decrease due to adjustment on age-error, &c. Total Total entered Total transferred from other classes Total discontinued Total transferred to other classes Total contributors on books at 31st December, 1947 11,974 237 28 784 35 5 12,758 272 33 2,282 75 64 368 23 8 2,650 98 72 231 5 9 51 2 5 282 7 14 594 20 24 126 11 5 720 31 29 5,521 842 2 5,474 1,364 1 10,995 2,206 3 20,602 1,179 127 6,803 1,435 24 27,405 2,614 151 398,846 68,922 56,187 1 12,239 953 824 116 13,063 1,069 2,421 190 399 56 2,820 246 245 39 58 9 303 48 638 55 142 10 780 65 6,365 874 6,839 2,146 13,204 3,020 21,908 2,111 8,262 2,337 30,170 4,448 523,956 101,085 11,286 708 111, 994 2,231 343 2,574 206 49 255 583 132 715 5,491 4,693 10,184 19,797 5,925 25,722 422,871 43 357 363 122 68 68 ■ 33 6 9 43 425 396 128 77 Dei 11 82 51 17 29 ails I 3 32 9 4 8 )/ Bis 14 114 60 21 37 lontin 18 7 3 11 uance "4 "2 3 !S, (fit '22 7 5 14 3., du 1 19 7 12 16 ring ! ' '4 2 ' '4 ',he Y 1 23 9 12 20 ear 27 744 100 3 9 2,115 22 36 2,859 122 3 82 1,220 428 254 127 12 2,223 44 34 24 94 3,443 472 288 151 3,247 58,707 1,520 37,287 323 1 953 116 1,069 190 56 246 39 9 48 55 10 65 874 2,146 3,020 2,111 2,337 4,448 101,085 65,025 4,784 5,821 275 70,846 5,059 10,733 3,501 Nv 1,516 333 i meria 12,249 3,834 il Pr< 1,151 644 igress 202 90 sinct 1,353 734 3 Estc 1,512 1,010 iblish 340 89 ment 1,852 1,099 14,699 169 29,335 17 44,034 186 93,120 10,108 37,214 804 130,334 10,912 69,809 6,096 75,905 14,234 1,849 16,083 1,795 292 2,087 2,522 429 2,951 14,868 29,352 44,220 103,228 38,018 141,246 54,845 3,678 5,082 306 59,927 3,984 7,357 4,646 1,190 316 8,547 4,962 803 786 142 101 945 887 1,015 924 216 81 1,231 1,005 9,303 74 24,659 33,962 74 73,323 10,108 31,289 804 104,612 10,912 58,523 5,388 63,911 12,003 1,506 13,509 1,589 243 1,832 1,939 297 2,236 9,377 24,659 34,036 83,431 32,093 115,524 11,286 708 11,994 2,231 343 2,574 206 49 255 583 132 715 5,491 4,693 10,184 19,797 5,925 25,722 422,871

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NATIONAL PROVIDENT FUND ACT, 1926 Contributors (General) (3) Statement of Pensions and Allowances for the Year ended 31st December, 1947

Contributors (Superannuation—Sections 22, 38, and 54 of the Act) 3a) Statement of Retiring and other Allowances for the Year ended 31st December, 1947

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On Death. On Incapacity. On Attainment of Age 60. Total Pensions and Allowances. Number. ♦Annual Amount. Number. ♦Annual Amount. Number. Annual Amount. Number. Annual Amount. Existing at beginning of year Granted during the year M. v. 161 £ 7,604 M. r. 23 .. £ 837 M. F. 792 192 £ 37,663 976 192 £ 46,104 54 .. 6,631 10 . . 822 145 10 5,524 209 10 12,977 Total Discontinued during the year (as per statement below) Existing at end of year.. 215 .. 13 .. 14,235 793 33 10 1,659 411 937 202 24 3 43,187 1,222 1,185 202 47 3 59,081 2,426 202 .. 13,442 23 .. 1,248 913 199 41,965 1,138 199 56,655 Particulars of Pensions and Allowances discontinued during the Year Discontinued by death Expiry 13 !! '793 11 9 .. 20 1 391 j 24 3 1,222 1 1 25 3 22 1,242 1,184 Total 13 793 | | 10 .. 411 | I 24 3 1,222 | | 47 3 2,426

— On Death. On Medical Unfitness. On Retirement (Age or Service). Total Retiring and other Allowances. Number. ♦Annual Amount. Number. ♦Annual Amount. Number. ♦Annual Amount. Number. Annual Amount. Existing at beginning of year Granted during the year Total Discontinued during the year (as per statement below) Existing at end of year Particulars q Discontinued by death Expiry Total M. F. 306 .. 45 £ 6,163 12,805 M. v. 94 19 11 1 £ 12,359 2,188 M. r. 572 253 68 22 £ 118,505 24,265 972 272 124 23 £ 137,027 39,258 351 .. 15 18,968 839 105 20 21 4 14,547 3,186 640 275 41 3 142,770 6,646 1,096 295 77 7 176,285 10,671 336 .. 18,129 84 16 11,361 599 272 136,124 1,019 288 165,614 f Retirin n .. 4 -g and other Allot 436 1 4 403 1 17 4 mnces d\ 627 2,559 iscontinu 41 3 ed during the Ye< 6,646 1 56 3 1 21 4 %r 7,709 2,962 15 839 | I 21 4 3,186 41 3 6,646 | 77 7 10,671 * Includes improvement in rates of Pensions and Allowances, effected during year.

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NATIONAL PROVIDENT FUND Progress of Pensions and Allowances since the Establishment of the Fund to 31st December, 1947

PART lI.—STATE SUBSIDY (Section 74) The amount of subsidy paid by tlie State for the year was £121,334.

Approximate Cost of Paper.—Preparation, not given; printing (665 copies), £l6 10s.

By Authority: E. V. Paul, Government Printer, Wellington.—l94B. Price 6d.]

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On Death. On Incapacity. On Maturity (Age or Service). Total Pensions and Allowances. Number. Annual Amount. Number. Annual Amount. Number. Aimual Amount. .Number. Annual Amount. Total granted Total discontinued M. F. 1,125 1 587 1 £ 64,003 32,432 M. F. 855 60 748 44 £ 65,916 53,307 M. F. 2,150 549 638 78 £ 250,485 72,396 M. F. 4,130 610 1,973 123 £ 380,404 158,135 Total existing at 31st December, 1947 538 .. 31,571 107 16 12,609 1,512 471 178,089 2,157 487 222,269