EDUCATION: TEACHERS' SUPERANNUATION FUND

Appendix to the Journals of the House of Representatives, 1949 Session I, E-08-part02

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1949 NEW ZEALAND

EDUCATION: TEACHERS' SUPERANNUATION FUND

Presented to Both Houses of the General Assembly by Command of His Excellency

FORTIETH AND FINAL REPORT OF THE TEACHERS' SUPERANNUATION BOARD For the Period Ist February, 1945, to 31st March, 1948 The Hon. the Minister op Education. Wellington, 30th June, 1949. Sir, — The Board has to submit the following report for the period ended the 31st March, 1948 The Board. —The usual quarterly meetings of the Board were held in February, May, August, and November of each year. The Board was abolished as at 31st March, 194-8, in terms of section 10 (2) of the Superannuation Act, 1947, and the final meeting was held in February, 1948. The Fund. —All assets and liabilities of the fund as at 31st March, 1948, were transferred to the Government Superannuation Fund in accordance with section 11 (1) of the Superannuation Act, 1947. During the period under .review the Superannuation Amendment Act, 1945, was passed, section 15 of which placed membership of the fund on a voluntary basis.' Section 16 enabled,contributors to withdraw from the fund while still remaining in the Education Service, and approximately seventy contributors received refunds of contributions under this provision. Sections 28 and 29 increased widows' benefits from £3l to £52 per annum. Provision was also made for payment of benefits to children up to sixteen, instead of fourteen years of age, and the Board was authorized to approve payment up to eighteen years for educational purposes or, where a child was still a dependant, for as long as the Board thought fit.

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The Act also provided a new method for calculating retiring-allowances, and by section 19 of the Superannuation Amendment Act, 1946, this was made retrospective to existing allowances, but provision was made that no existing allowance should be reduced on recomputation. The changes in legislation referred to threw a heavy burden on the staff already depleted due to conditions arising out of the war. It was impossible, therefore, despite'strenuous efforts, to prevent the. accounts work from falling into arrears. However, the arrears have been overtaken, and the Board is able to present its final accounts. To save further delay the period from Ist February, 1945, to 31st March, 1948, was dealt with as a whole, and separate accounts have not been prepared for each of the financial years ending on 31st January, 1946, 1947, and 1948. At its final meeting the Board placed on record its appreciation of the loyal service given by the staff. The following statements show the transactions, &c., of the fund for the period ended 31st March, 1948. For the Teachers' Superannuation Board, I. L. Gormack, Acting-Secretary.

(A) Revenue Account for the Period Ist February, 1945, to 31st March, 1948 £ £ Balance Ist February, 1945 .. 879,994 Retiring and other allowances .. 1,451,346 Contributions of members (including Contributions refunded — £ transfers) '.. .. •• 792,162 On voluntary retirement 172,310 Additional contribution from Fijian On death of members .. 29,342 and Tongan Governments and On of membership 15,874 N.Z.E.I. .. .. •• 2,140 Under section 16, SuperGovernment subsidies .. .. 993,230 annuation Amendment Interest — £ 4ct, 1945 .. .. 9,114 On investments and con- 226,640 tributions in arrears 123,139 Rebate of contributions under NaLessinvestmentswritten tional Expenditure Adjustment down (proportion of Act, 1932, section 9 (2), to premium on purchase annuitants .. .. .. 444 of investments) .. 1,528 Contributions transferred to other funds .. .. .. 8,562 121,611 Administration expenses .. .. 10,688 Plus investments written War bonus to re-employed annuiup (proportion of'dis- tants (Section 56, Finance Act count on purchase of (No. 2), 1945) .. .. 4,444 investments) .. 2,224 Balance at 31st March, 1948 .. 1,089,237 , 123,835 £2,791,361 £2,791,381

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(B) Balance-sheet as at 31st March, 1948 Liabilities ' £ | Assets £ Fund -as per Revenue Account .. 1,089,237 Amount held by Public Trustee in cash Retiring and other allowances flue and and investments (face value) .. 960,211 unpaid . .. .. 4,112 £ Refund of contributions due and Premium paid on purchase of unpaid .. .. .. 926 investments.. .. 3,772 Administration expenses unpaid .. 709 Less amount written off to Unclaimed contributions .. .. 8,998 31st March, 1948 .. 1,528 Amounts paid into fund in error .. 360 * 2,244 £ Amounts paid to protect securities .. 38 Discount on investments .. 4,031 Outstanding contributions .. 69,719 Less amount written off to Interest on investments : Accrued 31st March, 1948 .. 2,224 and overdue .. .. .. 9,152 1,807 Interest due on arrears of contributions .. .. .. 1,311 Subsidy from Fijian Government and N.Z.E.I. accrued .. .. 346 Due by Consolidated Fund for cost-of-living bonus .. .. 6,487 Government subsidies — Additional subsidy under section 114, Public Service Superannuation Act, 1927, allowances unpaid at 31st March, 1948 .. .. 1,524 Cash in Post Office Account .. 55,117 £1,106,149 £1,106,149 Note.—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 £1,641. The Teachers' Superannuation Fund was absorbed by the Government Superannuation Fund as at Ist April, 1948, in terms of the Superannuation Act, 1947. I. L. GORMACK, A.R.A.N.Z., Acting-Secretary, Teachers' Superannuation Board. Education Department, Wellington, 18tli March., 1949. 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. —C. J. M. Gair, Deputy Controller and Auditor-General.

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Table Showing Progress of Fund Since Its Inception (1st January, 1906)

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Year Ended Year Ended Year Ended Year Ended Year Ended j Year Ended Period Ended Total to * 31st March, 31st January, 31st January, 31st January, 31st January, 31st January, 31st March, 31st March, 1907. 1928. * 1932. * 1937. * 1942. | 1945. 1948. 1948. Total number of contributors .. 2,182 8,680 9,964 8,058* 9,827 | ll,165f 10,714 i Total amount of contributions .. £32, 320 £131,872 £115,961 £132,398 £173,126 i £191,280 £792,162 £4,820,105 Interest received .. .. .. £864 £68,053 £72,682 £44,187 £42,362 £41,062 £123,835 £1,581,831 Subsidy from Government .. .. £5,000 £71,228 £46,917 £171,800 £155,628; £137,938 £993,230 £3,909,222 Subsidy from Fiji Government .. .. £224 £238 £233 £361 £343 £1,626 £7,107 Subsidy from Tonga Government .. . . .. .. .. £21 j .. £236 £303 Number of allowances payable .. 84 1,364 1,677 2,038 2,211 j 2,387 2,769 Total amount paid on account of retiring £3,147 £188,552 £254,927 £323,976 £350,188 £374,585 £1,451,345 £8,044,136 and other allowances Total amount of contributions refunded £260 £26,076 £30,628 £31,481 £37,425 ; £42,275 £235,202 £1,062,147 ancl transferred Accumulated fund .. .. .. £34,734 £1,134,015 £1,218,166 £964,605 £954,640 j £879,994 £1,089,237 £1,089,237 ♦Lowest number of contributors since 31st January, 1926. fHighest number of contributors since commencement of Fund.

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Particulars of Contributions Discontinued and Allowances Granted and Refunds of Contributions Made During the Period 1st February, 1945, to 31st March, 1948

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Number of Contributors. Annual Kate at Date of Withdrawal. Benefits. How Discontinued. M. F. Total. Salary. Contributions. | Allowances: Annual Kate. Other Payments | (N"on1 recurring). By death before allowance entered upon— (a) Contributions paid to personal representatives (b) Leaving widow or child .. By voluntary retirement By lapsed membership Under section 16, Superannuation Amendment Act, 1945 .. By transfer to other funds By allowances granted on retirement— (a) Ordinary (b) Medically unfit (c) Extended provisions By death of annuitants 40 48 274 73 41 35 114 51 26 33 3 1,838 406 27 32 274 25 19 73 51 2,112 479 68 67 388 76 45 £ 29,941 30,755 627,807 113,257 35,180 24,290 ]-271,518 J * £ 1,570 1,648 32,424 5,978 2,115 1,257 14,330 £ 1,916 f113,179 i 13,951 L 9,224 3,545 £ 15,080 17,252 163,195 8,694 9,114 8,627 3 j 415 Totals 702 2,657 3,359. 1,132,748 59,322 141,815 225,377

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Statement of Retiring-allowances (Including Allowances to Widows and Children) for the Period 1st February, 1945, to 31st March, 1948

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(1) ( 2 ) Details of Column (2). Retiring-allowances. Allowances to— Total Allowances. , , , , r „ Ordinary Extended Mwlicaih- widows. Children. Particulars. A S e or Service. Provisions. Unfit, Number. Number. Number. Number. Number. , , Annual Annual Annual Annual Annual - Annual lotai. Rate _ Rate _ Bate Rate. No. Bate. Rate. M. F. M. F. M. F. M. F. M. F. £ £ £ £ £ £ Allowances as at 31st January, 656 1,753 2,409. 3.78,976 424 1,080 305,735 56 67 19,187 120 167 39,116 382 12,000 56 57 2,938 1945 Allowances granted during the 214 352 566 138,280 114 274 113,179 26 19 9,224 51 25 13,951 19 938 23 15 988 period at retirement or decease of contributors Allowances granted during the 30 38 68 3,551 .. .. .. .. .. •• 65 3,395 5 1 156 period to widows and children of deceased annuitants Totals .. .. 900 2,143 3,043 520,807 538 1,354 418,914 82 86 28,411 171 192 53,067 463 16,333 84 73 4,082 Allowances discontinued during 135 179 314 55,113 91 92 43,905 15 5 3,495 13 10 3,917 58 3,016 16 14 780 the period Allowances existing at 31st 765 1,964 2,729 465,694 447 1,262 375,009 67 81 24,916 158 182 49,150 405 13,317 68 59 3,302 March, 1948 1

Approximate Cost of Paper.—Preparation, not given ; printing (833 copies), £l7 10s.

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By Authority: R. E. Owen, Government Printer, Wellington.— 1949.

Price 6d .]

Particulars of Allowances Discontinued During the Period

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How discontinued— By death By expiry 119 16 157 22 276 38 53,917 1,196 91 92 43,905 15 5 3,495 13 10 3,917 50 8 2,600 416 16 14 780 Totals 135 179 314 55,113 91 92 43,905 15 5 3,495 13 10 3,917 58 3,016 16 14 780 Progress of Allowances Since Establishment of Fund to the 31st March, 1948 Total granted Total discontinued 1,813 1,048 3,113 1,149 4,926 2,197 740,233 274,539 998 551 1,744 482 571,117 196,108 186 119 118 37 50,005 25,089 325 167 260 78 82,310 33,160 759 354 24,763 11,446 279 211 257 198 12,038 8,736 Total existing 765 1,964 2,729 465,694 •147 1,262 375,009 67 81 24,916 158 182 49,150 405 13,317 68 59 3,302