SUPERANNUATION FUND.

Evening Post, Volume CX, Issue 68, 17 September 1930, Page 9

SUPERANNUATION FUND.

NOT ACTUARIALLT SOUND

Cariosity was shown by members of the House o£ Bepresentatiyes when the Public Service Superannuation IMnd. Account was under discussion, as to. the financial strength of the fund.

Mr. K. A, Wright (Keform, Wellington Suburbs) asked if anything had been done to strengthen the fund, and referred to statements that it had beea neglected and that it was in a parlous, condition.

Other speakers asked questions of the Minister in charge of the Fund as to the position of Public servants who were not subscribers to the fnnd, many of whom were said to be willing to pay their back contributions to enable them to join. The Minister (the Hon. J. B. Donald) said that last year £186,000 was paid into the fund. The present condition of the fund was that £1,415,199 would have to be paid into it in order to put in on a sound actuarial basis. It was necessary to pay £231,000 into the fund annually to keep it correct. Payments into the fund by way of interest and contributions amounted to a Kttla more than was being paid outi.

Mr. W. J. Poison (Independent, Stratford): "What are the accumulated surpluses?" Mr. Donald said that the aoeuniulated. funds at present totalled £2,846,000,' and a sum ot! £400,000 a year was being paid out. It was well known, he said, i that payments into the fund: had not been sufficient to cover liabilities. It would be seen from the figures he had quoted that the fund could. carry on for a considerable time yet. -----■

Mr. Poison: "The reserves are filer easing, are they not if 13 Mr. DonaW: "They are slightly. »c He added that the interest being earn* «d at present was £5 I 6« Ud par centum, and that was reducing the State's liability, because the fund wai valne4 at 4 per sent.