H.—l7b

2

(5.) Probabilities regarding children, as per New Zealand population statistics, 1908-12. (6.) Mortality rates of widows, as per New Zealand friendly-society rates two years younger, the result being an approximation to the rates of the female population of New Zealand for 1906-10. (7.) Interest, has been taken at 4 per cent., as the fund is State-guaranteed. At the valuation date, 31st December, 1913, there were 5,791 members, who were enrolled for 6,664 pensions of 10s. per week- -that is to say, there were 5,791 pensions of Ids. carrying with them the subsidiary benefits (maternity, incapacity, &c), and 873 duplicated pensions of I.os. not carrying with them any duplication of the subsidiary benefits, but paying the same rates of contribution despite that fact.* The valuation balance-sheet is appended : — Valuation Balance-sheet of the National Provident Fund as at 31st December, 1913. Liabilities. Value of liability for —• £ Pensions .. .. .. .. .. .. .. 201,640 Orphans' benefit .. .. .. .. .. .. 37,419 Widows'benefit .. .. .. .. .. .. 1.7,237 Incapacity allowance.. .. .. .. .. .. 13,766 Return of contributions on death .. .. .. .. 18,1.64 Return of contributions on withdrawal .. .. .. 42,195 £330,421 Assets. £ Amount of the fund at 31st December, 1913 .. .. .. 29,327 Value of contributions payable (assumed half a year after due date) . . 242,554 Value of State subsidy of one-fourth (assumed to be received a year later than the above) .. .. .. .. .. .. 58,306 Debit balance .. .. . . .. .. 234 £330,421 From this il will be seen that the assets and liabilities are virtually equal, the debit balance being insignificant. Section 24 of the Act provides thai the report of the Actuary shall show " the probable annual sums required by the fund to provide the, pensions and other allowances falling due within the ensuing three years without affecting or having recourse io the actuarial reserve appertaining to the con tributors' contributions." I think the intention of this is that, the Actuary should report what sums, if tiny, are required by the fund to meet current charges without touching the reserves actuarially earmarked against future liabilities. In other words, he should state what further subsidies are, in his opinion, actuarially necessary in the next three years beyond the statutory one-fourth subsidy attaching to the contributions and. forming part of the reserve with them. In this connection the next section of the Act— 25 (2)— provides that the Minister of Finance shall in each year pay into the fund " a sum equal to one-fourth ol the total contributions paid into the fund during the last preceding year together with such further amount (if any) as is deemed by the Governor in Council, in accordance with the aforesaid report of the Actuary, to be required to meet the charges on the fund during the current financial year." In pursuance of these sections, therefore, I have to report, that no such supplementary sums require 1o be paid into the fund during the three, years following the date of this valuation. As the maternity allowances are annually voted by Parliament I have regarded them as outside the actuarial aspects of the scheme. A, T. Traversi, A.I.A. (London), Wellington. 24th December, 1915. Actuary.

* As a matter of technical explanation it may be mentioned that the full State subsidy of one-fourth has been (alien ore-lit for in tho valuation irrespective of any extra-sufficiency of the suhsidy in oasos of duplicated pensions. There would be no practical object in eliminating tho over-sufficiency and substituting in its place a differently named subsidy, ft is time to do that when (and if) it is found that these particular cases fail to persist in due proportion.