3

H.—l6b

The clause in the Act providing for the deficiency in the Fund being paid out of the consolidated revenue is no doubt intended to apply when the actual expenditure for the year exceeds the receipts and funds in hand, and in this sense there will be no call on the Consolidated Fund for some years. The deficiency brought out by the valuation is the sum, as far as can be at present estimated, which should be placed to the credit of the Fund to enable it to meet the obligations to the present members -without further Government aid. The Consolidated Eevenue Account, Valuation Balance-sheet, and Estimated Eeceipts and Expenditure for the three years ending the 31st March, 1906, are attached. The last-named, of course, can only be regarded as a rough approximation to the actual results, for in such small numbers a single death more or less among the pensioners, or among those near the pension age, would make a considerable difference to the fund. In addition to this, there is the uncertainty as to what will be paid as pensions to those medically unfit or injured on duty, and as to the other allowances which may be granted by the Board. The deficiency on the 31st March, 1906, will probably be about £215,000. Respectfully submitted. P. Mutbb, Fellow of the Institute of Actuaries.

Consolidated Eevenue Account of the Police Provident Fund from the Ist December, 1899, to the 31st March, 1903. Dr. £ s. d. [ Cr. £ s. d. To amount transferred from the Police Pensions and other allowances.. .. 5,347 310 Reward Fund on the Ist December, Commission .. .. .. .. 104 19 10 1899 .. .. .. .. 1,665 7 6 Funds at the 31st March, 1903 .. .. 18,418 5 3 Contributions.. .. .. .. 20,886 4 2 Fines .. .. .. .. 55 11 6 Proceeds of sale of unclaimed property and cash found .. .. . . 55 19 11 j Interest .. .. .. .. 1,207 5 10 i £23,870 8 11 £23,870 8 11 Valuation Balance-sheet. Dr. £ i>. d. I Cr. £ s. d. Present value of pensions granted .. 29,591 0 0 j Funds at the 31st March, 1903 .. .. 18,418 5 3 Present value of prospective pensions to Present value of future contributions .. 83,406 1 0 officers in the service at the 31st March, Deficiency .. .. .. .. 188,992 0 9 1903 .. .. .. .. 222,462 17 0 Present value of return of contributions at death .. .. .. .. 10,215 10 0 Estimated additional reserve required for prospective pensions accelerated through medical unfitness, and other allowances, less the estimated relief afforded to the Fund by resignations and dismissals, &c. 19,547 0 0| £290,816 7 0 £290,816 7 0 Estimated Revenue and Expenditube for the Three Years commencing the 31st March, 1903, and ending the 31st March, 1906. Dr. £ s. d. Cr. £ c, d. Funds at the 31st Maroli, 1903 .. 18,418 5 3 Pension and other allowance .. .. 15,333 0 0 Contributions.. .. .. .. 18,300 0 0 Commission .. .. .. .. 91 10 0 Interest .. .. .. .. 2,060 0 0 I Funds at the 31et March, 1906 .. .. 23,453 15 3 Miscellaneous receipts.. .. .. 100 0 0 ii 38,878 5 3 £38,878 5 3

Government Insurance Department, Head Office, Wellington, 22nd June, 1903. The Right Honourable the Premier read your report on Saturday, and desired me to ask you to ascertain what the position would be if the retiring-age were sixty-five instead of sixty-three. I gathered from him that the retiring-age had been fixed, either by Cabinet or by regulation, at sixtyfive instead of sixty-three. You might make inquiries of the Police Department as to the actual age of retirement, and how it has been fixed. The Acting-Actuary. J. H. Richakdson, Commissioner.

Government Insurance Department, Head Office, Wellington, 26th June, 1903. Police Provident Fund. Clause 13 of " The Police Provident Fund Act, 1899," is as follows :— " 13. Any member whose length of service is not less than twenty-five years, and whose age is not lese than sixty years, may at any time thereafter, retire from the Police Force at the expiration