11.—26 a.

1932. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION FUND. ACTUARIAL EXAMINATION AS AT 31st MARCH, 1930.

Laid before Parliament in pursuance of Section 49 (4) of the Public Service Superannuation Act, 1927.

REPORT BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR-GENERAL TO MAKE THE ACTUARIAL EXAMINATION OF THE PUBLIC SERVICE SUPERANNUATION FUND.

Government Actuary's Department, Wellington, 25th November, 1931. ] I have the honour to submit the following report on the Public Service Superannuation Fund as at the 31st March, 1930, as required by section 49 of the Public Service Superannuation ' '2. The scheme, which came into operation on the Ist January, 1908, embraces, with the few exceptions set out in section 54 of the Act, all permanent publij servants outside the Government Railways Superannuation Fund and Teachers' Superannuation Fund. 3. "The contributions and the benefits provided by the Act, together with the statements showing the progress of active membership, discontinuance of membership from various causes, and the progress of pensions for each year, will be found in Tables I to IV of the appendix to this report. The ages of the contributors at the date of the valuation, together with their contributions and other particulars are shown in Table V ; and the pensions granted during the triennium, with the ages at which they were granted, in Table VI. 4. The income and outgo of the fund since the previous valuation w,ere as follow : — Consolidated Revenue Account of the Public Service Superannuation Fund from the Ist April, 1927, to the 31st March, 1930. Income £ s. d. Outgo. £ s. d. Funds at Ist April, 1927 .. ..2,493,790 711 Pensions to members .. 961,550 19 6 Members contributions .. .. 764,854 8 6 Pensions to widows and children .. 95,472 13 5 Transfers from other funds ..■ .. 1,463 13 10 Contributions returned .. .. U4.012 4 Government subsidy .. .. 358,000 0 0 Transfer to other funds .. 1,701 B 9 Subsidy from Cook Islands and Samoa Loss on realization of securities .. 3,902 11 0 Administrations ■■ 3,129 19 7 Salaries .. .. .. .. 8,282 11 5 Government subsidy under section 114, Public Trust Office Commission .. 11,179 19 10 Public Service Superannuation Act.. 42,66119 8 Travelling and office expenses '" , fla t'fiSl ? n Interest on investments .. .. 448,004 1 5 Funds at 31st March, 1930 .. ..2,882,504 111 Interest on arrears of contributions .. 917 12 1 Fines .. •• ■■ •• 979 4 6 Other receipts .. ... •• 199 ,2 10 £4,114,000 10 4 £4,114,000 10 4 5 It, will be noted that the funds shown herein differ from those shown in the annual report of the Superannuation Fund Board by £64,500, which sum the Board regard as unearned subsidy, and therefore treat as a liability. In this connection I would point out that the accounts of a superannuation fund are obviously not designed to show the annual profit or loss of the fund, nor does the balance-sheet make any pretensions to show, the real contingent liabilities of the fund m connection with pensions or other benefits. Under the circumstances, no good purpose is served by so understating the funds, and the Board is recommended to bring its accounting methods into line with the world-wide practice of financial institutions controlling life-assurance and other funds whose liabilities involve contingencies which cannot be measured by ordinary accountancy standards. I—H. 26a.