The Guardian corporated the West Coast Times And Evening Star, with which is in- TUESDAY, SEPTEMBER, 27, 1932. SUPERNNUATION ACT.

Hokitika Guardian, 27 September 1932, Page 4

The Guardian corporated the West Coast Times And Evening Star, with which is inTUESDAY, SEPTEMBER, 27, 1932. SUPERNNUATION ACT.

'["he report on the public service superannuation fund submitted to Parliament shows thtut the funds at March 31ist., 1930, stood at £2,882,504, compared wi'th £2,493,790 at March 31st-., 1927, On tlhe income side the chief .item requiring comment was the Government subsidy. Complied with the annual sulblsidies 'reported as necessary in the last actuarial report, the subsidies paid in during the period exhibited a shortage °i approximately £500,000 apart from the loss of interest thereon.' Commenting on the outgoings the report says retiring allowances are increasing and will continue to do so for many years to comie. The outgoings for benefits during the period exceed the total of conti ibution income and Government subsidy, and are about 75 per cent, of the combined incomes from contributions, interest, and Government subsidy. TV so high percontl.ijnoes are somewhat disturbing since the liabilities are essentially of a deferred nature, and consequently the funds should he increasing r.> idly while the fund is young and the nn mb or,ship i.s expanding. Retirements were again heavy between the ages of 50 and 59, eon-

tinue-s the report, and as attention has been oalled in the last two actuarial reports to this feature, and to the serious financial effect on the fund of its oontiniunncte, the practice of retiring irrespective of age, a considerable number of officers with from 35 to 40 years’ service, must, for valuation purposes, be regarded a.s a permanent feature of the fund'. The persistence of these heavy’ rates of retirement between the ages of 50 and 59 ware accompanied by a flattening of the rates at leges’over 60, and this appears to suggest that in future officers over the ago of 6*3 retained in the service will be large Tty composed of those with only short sorvice to their credit. The valuation statement shows a. State liability,.' of £7,871,439, as compared with £6.597,700 at the last valuation giving min increase of £1,211,669. This increase is mainly owing to the accumulation of interest of that part of the State’s liability which is unprovided for, and to the number of retirements of comparatively young officers; with long service being in excess of valuation, assumptions. There appears to be a popular impression that'in .the case of officers retired after 35 TifmV service, the fund is fully co-m----pon&JitjPd by the. fact .that the pension is based on thirty-five-sixtieths of salary instead of the maximum of fortysixtieths. Actually, the net liability to the fund in respect of a physiciaHy fit officer With 85 years’ service is on the average at least 39 nor cent, in excess of the net liability in respect of the same, officer for a. j full pension after completing 40 years.' The shortage in the fund to be made good by the State, namely, £7,871,439, is equivalent to an annual interest income at 4-h per cent, of £ 354.215. If 'any less annual sum thorn that is paid in by the State as subsidy, it follows that the total deficiency Will increase.