H.—l7.

1936. NEW ZEALAND.

NATIONAL PROVIDENT FUND. TWENTY-FIFTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1935.

Prepared in pursuance of Section 72 of the National Provident Fund Act, 1926.

The operations of the Fund, for the year ended 31st December, 1935, disclose satisfactory all-round progress, as shown by the following comparative figures r & 1935. 1934. New; contributors .. •• •• 2,977 Total contributors .. •• •• 25,782 -lo Pensioners 588 522 £ £ Contributions 233,178 227,652 Interest 168,039 65,829 Total income .. .. • • • • ■ • ®® 2 > 899 493,173 Pension payments .. •• •• •• 51 Other benefits .. .. •• •• olq'oai Total outgo .. •• •• •• 199,632 212,36 Funds at end of year 4,341,060 4,037 793 Rate of interest, per cent... .. .. £4 Is. lOd. £4 bs. lid. The benefits granted by the Fund include, inter alia, annuities at age sixty, widows' annuities, invalidity and death allowances varying with the number of dependent children, and the enrolment of contributors is not made any easier by the fact that the State also grants free old-age pensions and free pensions to widows, miners, &c. The last five years have imposed a severe test on the I 1 una, as a considerable number of members have elected, in many cases through force of economic circumstances,, to relinquish membership and withdraw their contributions. Under all the circumstances it is very gratifying that progress continues to be shown, and with improving financial conditions a greater degree of expansion may confidently be expected. It seems clear, however, from the experience of the Fund since its inception, together with the results of similar schemes m other countries, that the objective of relieving the State of old-age and other pension payments can be achieved only by a compulsory scheme, preferably including all sections of the community, although partial success might be achieved by commencing with those below a specified age or under a given income limit. If deemed desirable by Government, the present voluntary basis of the National Provident Fund could be altered and made compulsory, or, alternatively, the scales of contributions and benefits could be suitably modified to form the framework of a national compulsory contributory scheme. W. Lee Maktin, Chairman of the Board. C. Gostelow, F.1.A., Wellington, 23rd July, 1936. Superintendent of the Fund.