SUPERANNUATION

Evening Post, Volume CXIV, Issue 89, 12 October 1932, Page 5

SUPERANNUATION

THE TEACHEES' FUND

ACTUARY'S REPORT

There was a total State liability of £5,559,202 to the Teachers' Superannuation. Fund at, 31st January, 1930, according to the report of the Government Actuary (Mr. C. Gostelow), submitted to the House of Representatives yesterday. ~ ■ < The increase in the State's liability, as compared with the previous valuation three years prior to the present one being made, is shown as £911,404. '■' This increase," says the Actuary,,"is \ mainly due to the accumulation at inv terest of that part of the State's liability which is not provided for and to the number of retirements of comparatively young teachers with long service being in excess of the valuation assumptions.'' It is pointed out that if a.fund is'in deficiency at one.valuation, that amount of the deficiency at the succeeding valuation will, all other things being equal, increase at compound interest, since, in addition to the shortage of capital, the fund is deprived of the interest which that capital would have earned during the valuation period. The number of pensioners' on the fund' as. at 31st January, 1930, was 1231, drawing pensions amounting to £,218,109, exclusive of, 300 p_ensions, amounting to £8893 per., annum granted to widows and children of deceased 'members. The number of contributors at that time was 9614, with salaries totalling £2,613,078 per annum. Contributions 4 were paid at •_ the rate of £140,844 per annum. • * Compared with" the anntlal subsidies reported as necessary in the previous actuarial report, the Government subsi- . dies paid in during the three years showed a shortage of £315,000, apart from the loss of interest on this amount. JDealing with the outgoings, the report states that the amount paid out for benefits during the three years exceeded 110 per cent, of the total of the contribution income . and the Government subsidy and was more than 85 per cent, of the combined income from contributions, interest, and Government subsidy, as compared -with 90 per cent, and 70 per cent. respectively at the previous valuation. "As was pointed out in the last valuation report, J' continues the Actuary, "the high percentages were somewhat 'disturbing, since the liabilities were essentially of a deferred nature and consequently the funds should be i increasing rapidly while the jfund is young and the membership is expanding." t The general principle that no additional strain should be imposed on the future by policy measures of the , .Government is enunciated by the Actui ary, who suggests that increases in the retiring ages; would meet the situation.'