A BIG LIABILITY

Dominion, Volume 12, Issue 30, 30 October 1918, Page 4

A BIG LIABILITY

PUBLIC SERVICE SUPERANNUATION.

An actuarial report upon tue Public Service Superannuation Fund, presented to (lie Government last May, was laid before Parliament, yesterday. It.covers the three years ended Decembei 31, Ufa, and it shows that the Governments liability in connection with ■ the luut amounted then to. over JC3.000.000. The actuary suggested a g al '^^ at / ue , of the Government subsidy should be increased to meet this growing liability. The number of pensioners on the tunfl on December 31, 1916, was 1233, drawing pensions amounting to. fMW ner annum The number of contributors at the Mine date was 15,315, paying contributions at the rate of iUI.SW per a— Tho actuary summarises the balance ot nssels and liabilities as follows LIABILITIES. ' Value of contributors' pensions . already granted .. ; 803,431 Widows' and children s pensions already granted »— Value of prospective pensions to present contributors for back service ' 5 Value of prospective Pension* to present contributes for future service ••• Value of prospective pensions to widows and children of present contributors « 3 ' OSI Value ot returned contributions pf death or withdrawal 480, b.i Total i5 ' 550 ' 640 ASSETS. Accumulated funds 891,568 Value of contributors future contributions '' '' Value of present and future Government subsidies Total ■; rr'ff The actuary mentions that of tnis Government liability, an amount of jjl 000,000 is covered j>y the picsent sin sidy, while the remaining amount of j!l 807 031 has still to be piouded foi. Kflast valuation the Government liability amounted to .£-,381,466. the in ereises of .£625,615 is made up to the Went o° J8U7,500 of interest accnmu ations on the unprovided part of the liaS the balance of the increase, being mainly due to the normal expansion m number of contnbutois. \s on a previous occasion, the actuary cn'oiroeU that the Government subr,d\ should take the form of a fixed mc.ptage on the annual salaries instead ot a nercentage on Iho current, pensions paid ?n excess of what contributors tnemselves have purchased. A subsidy of 6( subsidy would drop to a much smaller figure Tho annual cost at the on set by fim nercentngo arrangement would do JJ06.000, as compared' with ,£B6,GW) now paid- '