4

The 1937 valuation disclosed a surplus of £293,331, £75,000 of which was appropriated to the Investment Fluctuation Account. It will lie seen, therefore, that the financial position of the Fund has improved during the quinquennium by some £340,000. The main items contributing to this improvement were interest on the previous surplus, interest earned in excess of 3| per cent, per annum, and high rates of withdrawal from the Fund especially in the Main Fund and amongst nurses. The bulk of the above surplus must be regarded as a special reserve to cover the possibility of reduced interest earnings in future. 18. It is inferred from section 73 (2) of the National Provident Fund Act, 1926, that, if a valuation discloses a deficiency, the Actuary is to report what additional sums are required by way of State subsidv during the five years following the valuation to prevent the financial position of the Fund deteriorating still further. As this valuation discloses a surplus, I have to report that additional subsidies are not required. S. Beckinosale, Fellow of the Institute of Actuaries, Government Actuary. National Provident Fund Board, Wellington.

APPENDIX Table I.—Membership at Successive Valuations

Local Authorities' Section

Table II The benefits granted under the standard scheme in the Local Authorities' Section are as follows : I. On retirement after attaining age sixty-five (men) or age sixty (women), or after completion of fortv years' service and fifteen years' membership of the Fund (i) A pension calculated at the rate of one-sixtieth of final salary (excluding increases in salary granted within three years of retiring) for each year of service, with a limit of forty-sixtieths and subject to a maximum of £300 per annum ; (ii) Or a refund of all contributions paid, including the local authority's contributions, less benefits received. Where the conditions of service are such that earlier retirement is advisable, age sixty is adopted as normal retiring-age for men and fifty-five for women. In the latter case an employee may retire after completing thirty years' service and fifteen years' membership of the Fund. 11. On earlier retirement through ill health a pensiou as in 1. 111. On death, whether before or after retiring : — (i) Leaving neither Widow nor Children. —A refund of all contributions paid, including local authority's contributions, less benefits received. (ii) Leaving a Widow. —An allowance of £18 per annum during widowhood or a refund of contributions as in (i). (iii) Leaving Children. —An allowance of ss. per week on account of each child under the age of fourteen years. Where no widow's benefit has accrued a refund of all contributions paid, including the local authority's contributions, less benefits received, i& granted when the youngest child attains fourteen years of age. I\. On voluntary withdrawal or on dismissal from the service of the local authority both employee and local authority receive a refund of contributions, provided that— (i) If the employee enters the service of another local authority which contributes to the Fund on behalf of its employees he may secure continuity of service for pension purposes by electing not to receive a refund of his contributions. In this event the local authority's contributions also are not refunded. (ii) If the employee is dismissed within five years of normal retiring-age his and the local authority's contributions on his behalf may be transferred to the Main Fund for » his benefit.

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„ , ,. Contributors. Pensioners. Other Beneficiaries. valuation at 31st December, Annual Annual NT . Annual AT , Annual Number. n i -i i- t> ■ Number. TJ . Number. „ . Contributions. Pensions. Pensions. Payments. Main Fund £ £ £ £ 1913 .. 5,791 22,798 173,864 1916 .. 9,847 38,758 302,305 1919 15,022 58,551 464,767 .. .. 106 2,067 1922 20,223 81,009 658,459 2 130 222 4,329 1925 23,075 88.002 732,946 . 8 572 330 6,435 1937 20,991 80,879 680,532 269 12,006 474 9,275 1942 17,912 70,130 599,548 612 25,329 394 7,710

1913 1916 1919 .. 1,133 32,076 116,221 14 1,171 43 634 1922 1.895 58,439 239,836 87 7,038 82 1,251 1925 2,687 78,715 354,898 139 12,832' 94 1,462 1937 7,981 191,406 970,467 547 63,386 241 3,893 1942 . 10,596 270,328 1,387,588 691 87,906 270 4,455