H.—l6c

2

The death-rate among pensioners or prospective pensioners when they retire has been assumed to be the same as in Dr. Farr's Healthy English Mortality Table (Males), but in all other respects the actual experience of the Fund itself has been used. Future increases in salary have been allowed for in valuing the contributions and prospective pensions. The average rate of interest earned on the Fund during the last nine years has been as follows : — £ s. d. 1900-3 .. .. .. .. .. .. .. .. 3 9 10 1903-6 .. .. .. .. .. .. .. .. 313 11 1906-9 .. .. .. .. .. .. .. .. 415 3 In the two former valuations 3| per cent, interest was used, but the improvement in the rate actually earned has been so great that I have taken 4 per cent, on this occasion. The valuation relates to present members only, and no increase has been made for future entrants. The results of the valuation are as follows :— Valuation Balance-sheet as at 31st March, 1909. Liabilities. £ Assets. £ Value of 79 pensions already granted, for £7,530 Accumulated funds at 31st March, 1909 .. 31,813 per annum .. .. .. .. 68,150 Value of future contributions .. .. 80,452 Value of prospective pensions to 770 officers now Deficiency .. .. .. .. 254,291 in the service .. .. .. .. 282,522 Value of return or part-return of contributions at death or retirement, &c. .. .. 15,884 £366,556 £366,556 As compared with the previous valuations, the value of the contributions has been somewhat reduced (notwithstanding the increase in the staff) by using 4 per cent, interest instead of 3Jr per cent., and by allowing for the rather numerous retirements from the Fund experienced in the past. These factors also tend to reduce the value of the prospective pensions ; and, although the deficiency has increased, it is less than would have been the case if no change in the method of valuation had been made. 5. The receipts and expenditure for the three triennial periods, 1900-9, have been as follows : —

The increase in the funds for each year has been as follows : — £ Funds at 31st March, 1900 ..' • .. .. .. .. .. 3,257 Increase for the year 1901 . . .. .. .. . . . . 5,929 1902 .. .. .. .. .. .. 5,393 1903 .. .. .. .. .. .. 3,839 1904 .. .. .. .. .. .. 3,376 1905 .. .. .. .. .. .. 3,082 1906 .. .. .. .. .. .. 2,245 1907 .. .. .. .. .. .. 2,005 1908 .. .. .. .. .. .. 1,411 1909 .. .. .. .. .. .. 1,276 Funds at 31st March, 1909 .. .. .. .. 31,813 Estimated increase for the year 1910. . .. .. .. .. 463 ~ decrease ~ 1911.. .. .. .. .. 40 decrease „§ [ 1912.. .. .. .. .. 688 Estimated funds at 31st March, 1912 .. .. .. £31,548 The increase in the funds was greater than was estimated at the previous investigations, partly owing to the large increase in the staff in recent years, the improvement in the rate of interest earned, and also to the pensions being less than expected. Notwithstanding this, however, the margin between the receipts and expenditure has continuously diminished from £5,929 for the year ending 31st March, 1901, to £1,276 for the year ending 31st March, 1909.

Income. Outgo. . 1900-3. 1903-6. 1906-9. 1900-3. 1903-6. 1906-9. Funds at beginning of period Contributions Miscellaneous £ 3,257 19,272 109 1,207 £ 18,418 19,341 169 2,567 £ 27,121 21,738 321 4,244 £ Pensions and other 5,322 allowances Commission . . j 105 Fund at end of I 18,418 period £ 13,273 101 27,121 £ 21,296 315 31,813 Interest 23,845 40,495 53,424 23,845 40,495 53,424