NATIONAL PROVIDENT FUND THIRTY-NINTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1949

Appendix to the Journals of the House of Representatives, 1950 Session I, H-17

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1950 NEW ZEALAND

NATIONAL PROVIDENT FUND THIRTY-NINTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1949

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. During its thirty-nine years of operation the Fund, established by Act in 1910, has made progress unequalled by any New Zealand institution. Accumulated funds now stand at £10,877,619 ; annual income is in excess of £1,000,000, and outgo exceeds £490,000. Summarized figures for the annual periods ended 31st December, 1939 and 1944> shown along with those for the year 1949, form a ready basis for comparison : 1939. 1944. 1949. New contributors .. .. .. 2,997 2,856 2,881 Total contributors .. .. .. 28,729 28,054 23,815 . Pensioners .. .. .. .. 935 1,462 2,316 Income— £ £ £ Contributions .. .. .. 299,308 357,887 665,778 Interest (including fines) .. .. 213,054 271,155 338,515 Total income (including State subsidy) .. 632,128 754,673 1,188,188 Outgo— Pensions .. .. .. .. 82,353 118,900 226,173 Other benefits .. .. .. 188,521 192,755 263,327 Total outgo .. .. .. .. 273,971 314,977 492,423 Funds at end of year .. .. .. 5,648,415 7,732,833 10,877,619 Effective interest earnings (per cent.) .. £3 18s. 3d. £3 12s. 9d. £3 4s. lid.

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2. (a) During the year further improvements were effected in the superannuation provisions for local-authority employees. The notice of variation issued in terms of section 14 of the 1946 Amendment Act introducing the 1949 Standard Scheme and superseding the 1947 Standard Scheme, gave effect to repeated requests for further improvements in the widow's benefit, which is now payable at the rate of half the pension or prospective pension payable to the deceased employee, subject to a minimum of £lO4 and a maximum of £3OO per annum. This improvement removes a weakness of superannuation in comparison with insurance, in that a valuable family cover vests immediately upon commencement of contribution. New ground was broken by the introduction of a provision whereby contributing employees moving from one employment to another may retain their membership during the period of transition in addition to holding secure all vested contribution and service credits. (b) A special scheme for fire-brigadesmen with conditions and benefits closely following those obtaining in the English scheme was issued towards the end of the year, provision being made for the crediting of earlier service and whereby men over age fifty and unable to fulfil the requirements of this arduous service might retain their accrued pension rights although gainfully employed elsewhere. (c) Increasing numbers advantaged themselves of the benefits of individual membership of the Fund wherein, with the attaining of age sixty of many who became contributors in the early years of its operations, the fruits of continuous membership are now becoming apparent. 3. Staffing difficulties continue, and although the application of members is to be commended, there remains a considerable backlog of work to be dealt with. It is hoped that with the mechanization of the accounting system, arrears of work will be overtaken during the current year. W. H. Fortune, Chairman. W. L. Comrie, Superintendent. 20th July, 1950

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NATIONAL PEOVIDENT FUND (1) Revenue Account for the Year Ended 31st December, 1949 Amount of Fund at beginning of year £ Refund of contributions on lapse, £ (Ist January, 1949) .. .. 10,181,854 reduction, and withdrawal .. 131,483 •Contributions .. .. .. 665,778 Refunds: In lieu of pension .. 35,047 Interest .. .. .. 338,167 Incapacity: Allowances, including Fines .. .. .. . . 348 contributions waived on Government contribution under incapacity (£67) .. .. 13,285 Act.. .. .. .. 159,891 Death: Refund of contributions 32,896 Contributions over-paid on exit .. 559 Death : Allowances on account of Benefits refunded on exit - .. 21,533 widows and children .. .. 50,616 Refunds unclaimed .. .. 1,912 Pensions .. .. .. 226,173 Refund of contributions overpaid on exit .. .. .. .. 559 Public Trustee: Charges .. 2,253 War-risk insurance premiums .. 11l Amount of Fund at end of year (31st December, 1949) .. .. 10,877,619 £11,370,042 £11,370,042 Balance-sheet as at 31st December, 1949 Liabilities £ Assets £ Fund as per Revenue Account .. 10,877,619 Government securities ... .. 8,891,526 •Claims due and in course of pay- Local-body securities .. .. 1,130,751 ment* — Mortgages .. .. .. 656,205 Death: Allowances .. .. 417 Uninvested funds .. .. 27,596 Pensions .. .. .. 1,378 Post Office .. .. .. 2,313 Incapacity: Allowances ... 217 Balances in transit .. .. 48,821 Refunds: In lieu of pension .. 6 Contributions outstanding or in Public Trustee: Charges* .. 857 course of transmission* — Refunds in Suspense .. .. 117,434 (a) Contributions due but not Suspense Account .. .. 4,637 overdue .. .. 164,221 ■Contributions prepaid .. .. 66,202 (b) Contributions overdue .. 2,303 Investment Fluctuation Reserve .. 98,716 Government subsidy due under Act* 159,891 Fines due* .. .. .. 144 Interest due* .. .. .. 1,712 Interest accrued but not due* .. 82,000 £11,167,483 £11,167,483 * Included in Revenue Account. W. L. Comrie, Superintendent. R. S. Brown, Accountant. Wellington, 10th July, 1950. 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, 1949

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Numbers. Class 1. Pension Rate, 10s. Class 2. Pension Pate, 20s. Class 3. Pension Rate, 30s. Class 4. Pension Rate 40s. Class 5. Superannuation. Aggregate. Annual Contributions. £ M. 1?. T. M. P. T. 1 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, <ftc. Total Discontinuances, &c. (as per detailed statement below) Total at end of year . . 10,746 244 19 646 25 6 11,392 269 25 2,229 91 42 324 17 7 2,553 108 49 209 8 8 49 4 2 258 12 10 596 29 22 136 7 3 732 36 25 5,404 1,057 38 4,117 1,399 6 9,521 2,456 44 19,184 1,429 129 5,272 1,452 24 24,456 2,881 153 468,565 97,325 37,668 5 11,009 774 677 107 11,686 881 2,362 201 348 34 2,710 235 225 20 55 7 280 27 647 59 146 24 793 83 6,499 671 5,522 1,778 12,021 2,449 20,742 1,725 6,748 1,950 27,490 3,675 603,563 75,043 10,235 570 10,805 2,161 1 314 2,475 205 48 253 588 1 122 710 5,828 3,744 9,572 19,017 4,798 23,815 528,520 Death Notice of withdrawal Lapse and cancellation .. Attainment of pension age Transfer to another class Decrease due to adjustment on age-error, &c. Total .. 33 295 268 126 52 1 62 23 10 11 34 357 291 136 63 Details of Discontinuances, &c, During 1 1 2 4.. 92 15 107 8 0 14 18 14 68 5 73 3 .. 3 4 2 12 7 19 2 . . 2 6 3 28 6 34 7 1 8 27 5 the Year 4 24 32 527 6 9 105 32 15 6 1,740 '31 1 30 2,267 i.36 16 62 940 343 251 129 8 1,837 30 51 24 70 2,777 373 302 153 2,403 60,738 1,236 10,409 255 2 774 107 881 201 34 235 20 7 27 59 24 83 671 1,778 2,449 1,725 1,950 3,675 75,043 Total entered Total transferred from other classes 65,576 4,824 5,881 284 71,457 5,108 10,949 3,633 Ni 1 ,555 344 imerict 12,504 il Pr 1,170 664 ogress 212 93 Since Establishment 1,388 1,591 354 1,915 757 1.1157 99 1.156 16.488 224 31.960 23 48,448 247 95,780 10,402 39,962 843 135,742 11,245 70,400 6,165 76,565 14,582 1,899 16,481 1,840 305 2,145 2.648 453 3,101 16,712 31,983 48,695 106,182 40,805 146,987 Total discontinued Total transferred to other classes 56,336 3,829 5,272 323 61,608 4,152 7.715 4,706 1 ,258 327 8,973 5,033 830 805 152 105 982 910 1,088 972 244 87 1,332 1 .059 10,794 90 28,238 1 39,032 91 76.763 10,402 35,164 843 111,927 11,245 60,165 5,595 65,760 12,421 1,585 14,006 1,635 257 1,892 2,060 331 2,391 10,884 28,239 39,123 87,165 36,007 123,172 Total contributors on books at 31st December, 1949 1.0,235 570 10,805 2,161 314 2,475 205 48 253 588 122 710 5,828 3,744 9,572 19,017 4,798 23,815 528,520

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NATIONAL PROVIDENT FUND ACT, 1926 General Contributors (3) Statement of Pensions and Allowances for the Year Ended 31st December, 1949

Superannuation Contributors (Local Authorities, &c.) (3a) Statement of Retiring and Other Allowances for the Year Ended 31st December, 1949

NATIONAL PROVIDENT FUND Progress of Pensions and Allowances Since the Establishment of the Fund to 31st December, 1949

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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. Annua Amount. Existing at beginning of year Granted during the year M. F. 211 16 13,754 1,482 11. F. 21 8 £ 1,201 429 H. F. 1,028 212 126 19 £ 46,262 4,880 M. F. 1,260 212 150 19 £ 61,217 6,791 Total Discontinued during the year (as per statement below) Existing at end of year .. 227 29 15,230 1,976 29 12 .. 1,630 795 1,154 231 31 8 51,142 1,612 1,410 23! 72 8 68,008 4,383 198 13,260 17 835 1,123 223 49,530 1,338 223 63,625 Particulars of Pens ions ana 1/J76 \ Allowances Discontinued During the Year 31 8 1 .612 1 31 8 1 1 fi12 Expiry 29 12 795 1 41 2,771 Total 29 1,976 12 795 31 8 1,612 | 72 8 4,383

On Death. On Medical Unfitness. On Retirement (Age or Service). Total Retiring and other Allowances. Number. Annua] Amount. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount. Existing at beginning of year Granted during the year M. F. 363 . . 33 £ 35,706 3,114 M. F. 84 13 7 3 £ 12,123 1,900 M. F. 615 292 66 29 £ 165,004 26,457 M. F. 1,062 305 106 32 £ 212,833 31,471 Total Discontinued during the year (as per statement below) Existing at end of year 396 19 38,820 1,812 91 16 14 2 14,023 2,124 681 321 22 10 191,461 5,796 1,168 337 55 12 244,304 9,732 377 .. 37,008 77 14 11,899 659 311 185,665 1,113 325 234,572 Particulars of Discontinued by death .. Expiry Retiring n 8 and Other Allowances Discontinued During the Year 1,058 1 6 .. 875 I 22 10 1 5,796 39 10 7,729 754 j 8 2 1,249 1 .. .. | .. 16 2 2,003 Total 19 1,812 1 14 2 2,124 22 10 5,796 55 12 9,732

" On Death. On Incapacity. On Maturity (Age or Service). Total Pensions and Allowances. Number. Annual Amount. Number. Annual Amount. Number. Animal Amount. -Number. Annual Amount. Total granted Total discontinued M. F. 1,235 1 660 1 £ 88,984 38,716 M. 897 803 F. 63 49 £ 71,427 58,693 M. F. 2,544 639 762 105 £ 324,230 89,035 M. F. 4,676 703 2,225 155 £ 484,641 186,444 Total existing at 31st December, 1949 575 .. 50,268 94 14 12,734 1,782 534 235,195 2,451 548 298,197

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PAKT lI—STATE SUBSIDY (Section 74) The amount of subsidy paid by the State for the year was £159,891. PART lII—ACTUARY'S SEPARATE REPORT ON ADEQUACY OF CONTRIBUTIONS (Section 20, National Provident Fund Amendment Act, 1946) " In accordance with section 20 of the National Provident Fund Amendment Act, 1946,1 have to report that as at the date of the valuation of the Fund just completed— i.e., 31st December, 1947 —the rates of contribution payable, 5 per cent, to 10 per cent, of salary, according to the age at entry of the contributing employees, together with a like amount from the employer, were more than sufficient, after allowing for the State subsidy, to support the standard benefits then payable in respect of new entrants." S. Beckingsale, A.1.A., Government Actuary. The Board, having considered the Actuary's report, and taking into account the additional improvements effected in the widows' benefit since December, 1947, resolved that the present rates of contributions should be continued until after the next valuation of the Fund in 1952. W. L. Combie, Superintendent. 29th March, 1950.

Approximate Cost of Paper. —Preparation, not given ; printing (709 copies), £22.

By Authority: R. E. Owen, Government Printer, Wellington.—l9so.

Price od.\

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