SUPERANNUATION FUND.

Taranaki Daily News, 1 November 1918, Page 8

SUPERANNUATION FUND.

. ' ACTURIAL REPORT. An acturial report upon the public service superannuation fund, presented to tko Government last May, was laid .before Parliament on Monday. It cover.-; the tforce years ended December 31, 191G, and it shows that the Government's liability i;t connection with the fund amounted then to over £3,000,000. The Actuary suggested again that the amount of the Government subsidy should be increased to meet this growing liability. The number of pensioners on the fund on December 31, 1010, was 1233, drawing pensions amounting to £88,302 per annum. The number of contributors at the same date was 13,315, paying contributions at the rate of £141,844 per annum. The Actuary summarises; the balance of assets and'.liabilities as followsi— LIABILITIES. : '!' Value of contributors' pensions already granted, £803,431; widows' and children's pensions already granted, £07,227; value of prospective pensions to present contributors for back service, £2,139,877; value of prospective pensions to present contributors for future service, £1,740,084; value of prospective pensions to widows and children of present contributors, £453,084; value of returned contributions of death or withdrawal, £430,817; total, £5,050,840, ASSETS. Accumulated funds, £Sol,sflß; value of contributors' future contributions, £1,847,191; value of present and future Government subsidies, £3,007,081: total £5,550.840. The Actuary mentions that of this Government liability, an amount of £l,200,000 is covered by the present subsidy, while the remaining amount of £'l',Bo7,oSl has still to bo provided for. I At the last valuation the Government liability amounted to £2,381,400. The increase of £025,015 is made up to the extent of £147,500 of interest accumulations on the unprovided part of the liability, the balance of the increase being mainly due. to the normal expansion in the number of contributors. As on a previous occasion, the Actuary suggests that the Government subsidy- should take the form of a fixed percentage on the annual salaries Instead of a percentage on the current i pensions paid in excess of what contributors themselves have purchased. A subsidy of 07 per cent on tliic contributions of males and of 7S per cent on the contributions of females would extinguish the deficiency in 78 years, and after that the subsidy would drop to a ranch smaller figure. The annual cost at the outset by the percentage arrangements would be £90,000, as compared with £BO,OOO now paid.