PUBLIC SERVICE SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1919.

Appendix to the Journals of the House of Representatives, 1922 Session I, H-26a

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1922. NEW ZEALAND.

PUBLIC SERVICE SUPERANNUATION FUND. ACTUARIAL EXAMINATION FOR THE TRIENNIUM ENDED 31st DECEMBER, 1919.

Laid before Parliament in pursuance of Section 48 (4) of the Public Service Classification and Superannuation Act, 1908.

REPOBT BY THE ACTUARY APPOINTED BY HIS EXCELLENCY THE GOVERNOR-GENERAL TO MAKE THE ACTUARIAL EXAMINATION OF THE PUBLIC SERVICE SUPERANNUATION FUND FOR THff TRIENNIAL PERIOD ENDED 31pt DECEMBER, 1919. 1, I have the honour to submit the following report on the Public Service Superannuation Fund as at the 31st December, 1919, as required by section 48 of the Public Service Classification and Superannuation Act, 1908. * 2. The scheme, which came into operation on the Ist January, 1908, embraces, with the few exceptions set out in section 52, all permanent public servants outside the Government Railways Superannuation Fund and the Teachers' Superannuation Fund. 3. The contributions and the benefits provided by the Act, together with the statements showing the progress of active membership, discontinuance of membership from various causes, and the progress of pensions for each year, will be found in Tables ItoIV of the appendix to this report. The ages of the contributors at the date of the valuation, together with their contributions and other particulars are shown in Table V, and the pensions granted during the triennium, with the ages at which they were granted, in Table VI. J 4. The number of pensioners on the fund at the 31st December, 1919, including widows and children, was 1,685, drawing pensions amounting to £120,460 per annum ; the number of contributors at the same date was 14,216, with aggregate salaries amounting to £3,084,195, and paying contributions at the rate oi £184,928 per annum. 5. The income and outgo of the fund during the three years are shown in the Consolidated Revenue Account, which is as follows :— Consolidated Revenue Account of the Public Service Superannuation Fund prom the Ist January, 1917, to the 31st December, 1919. Income. £ s. d. Otttgo. a s . d Funds at Ist January, 1917 .. 896,568 0 3 Pensions to members .. .. 278 633 9 4 Members'contributions .. 473,651 13 3 Pensions to widows and children 31,315 7 9 Government subsidy .. .. 182,000 0 0 Contributions returned .. 108,582 10 ] Transfers from other funds .. 707 16 2 Compensation .. .. 7189 12 8 Interest .. .. .. 168,929 10 4 Transfers to other funds .. '599 14 1 Fines .. .. .. 899 7 9 Salaries .. .. '. 2,802 9 1 Public Trust Office commission 10 5 Travelling and office expenses .. 1,212 4 2 Funds at 31st December, 1919 1,288' 197 10 2 £1,722,756 7 9 £1,722,756 7 9 6. During the triennium the war measure postponing retirements lapsed, and in 1918 (section 26 Appropriation Act) provision was made for an increase of the subsidy from £48,000 to £86,000 the increase commencing in the 1919 accounts.

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Valuation. 7. In making the valuation it has been taken that interest at 4 per cent, per annum will be earned on the fund during the whole future lifetime of members ; that a proportion of members will leave the Service, and a proportion die at each age in accordance with the pre-war experience of the fund, drawing the appropriate benefits and relieving the pension liability; and that salaries and the corresponding contributions will increase from age to age according to the ratios of increase deduced from the average salaries at the 31st December, 1919, the pensions payable at retirement depending upon the same rates of salary-increase. These and other factors are more specifically set out in the appendix. In regard to the rate of interest, the rates earned during the triennium were as follows : 1917, £5 3s. 3d. per cent. ; 1918, £5 4s. Id. per cent. ; 1919, £5 ss. lOd. per cent. ; and, while comparatively high rates may continue to be earned for some time, it would not be prudent to anticipate more than 4 per cent, for the long period covered by a pension fund. 8. The result of the valuation, shortly, is as follows ; — £ Present value of the liability for benefits .. .. .. .. 7,486,981 Present value of contributions receivable from members £2,055,794 Funds in hand .. .. .. .. .. 1,288,198 3,343,992 Present value of total liability of State .. .. .. .. 4,142,989 Less present value of existing subsidy of £86,000 .. .. .. 2,150,000 Value of future subsidies to be provided for by the State over and above present subsidy of £86,000 .. .. .. £1,992,989 The valuation balance-sheet is given in detail in Table X of the appendix. 9. This shows a total State liability of the value of £4,142,989, as against £3,007,081 on the last occasion. The increase is due partly to accumulation at interest of that part of the State's liability that is unprovided for, partly to the normal expansion of the Service, and partly to the increased salaries. The pensions current have increased from £88,392 per annum to £120,460 per annum, the number of contributors from 13,313 to 14,216, and the salaries from £2,287,591 to £3,084,195. The average salary has increased from £172 to £217, and, of course, an increase given to a contributor approaching the pension age adds materially to the value of his pension, particularly when considerable back service, while adding little to the value of his contribution. 10. The. high salary scale resulting from the war conditions renders it difficult to estimate the liabilities with full confidence, as these depend materially upon the future course of the salary scale. The scale in force at the moment of writing represents a further increase upon that assumed in the valuation, and possibly an addition to the liabilities. Apart from this, the enforced retirements of officers with long service which are now taking place are casting a considerable unanticipated liability upon the fund, which will at once render increased State subsidies necessary. A certain amount of relief of a minor character will, on the other hand, accrue to the fund in those cases of enforced retirement in which the officer is entitled only to a refund of his contributions. 11. The Act (section 48 (2) ) requires the report to be so prepared " as to show the state of the " fund at the close of the period, having regard to the prospective liabilities and assets and the probable " annual sums required by the fund .to provide the retiring and other allowances falling due in the " ensuing three years without affecting or having recourse to the actuarial reserve appertaining to the " contributors' contributions." This has been taken to mean that the estimated pensions falling due during the three years following the valuation are to be divided into two parts—viz. (a) containing that part of the pensions provided for by the contributions, and (b) the remainder, which includes the pensions for service prior to joining the fund, and (as the contributions are insufficient to purchase full benefits for even future service) such part of the pensions for years of contribution as the contributions are not sufficient to provide for. The first is clearly a liability which should be borne by the fund, but the second is not, and it is assumed that the intention of section 49 is that it should be paid for by a subsidy, to be increased from time to time, if necessary, according to the report. 12. The estimated pensions falling due during 1.920, 1921, and 1922, and the portions provided by the contributions and to be paid by subsidy respectively, are as follows : — 1920. 1921. 1922. Required for — £ £ £ Current pensions to members .. .. ..102,232 97,054 91,948 New pensions and family pensions .. .. .. 29,899 48,156 70,930 132,131 145,210 162,878 Deduct amount of pensions provided by contributions .. 30,785 35,796 42,372 Amount due to be paid by the State in respect of the three years mentioned .. ..£101,346 £109,414 £120,506 These figures would give an average subsidy for the years 1920, 1921, and 1922 of £110,000, or £24,000 more per annum than is at present being paid. The following considerations, however, must be taken into account: — (a.) The actuarial recommendations made in the past in pursuance of the Act have not been fully carried out, the actual payments into the fund to the 31st December, 1.919, being short by £180,000 of the amount recommended. When accumulated at 4 per cent, interest to the middle of next year these arrears amount to £237.264, and, of course, provision must be made in some way to meet this

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At the very least £10,000 per annum must be added to the'future subsidies on this account. Details of the short payments are set out in the appendix (Table XI). (b.) The extraordinary retirements which are being effected at the present time will entail a considerable special addition to the Government subsidy to the fund as from the year 1922. Full details of these retirements are not available, but those reported at the date of writing willjnean an addition of £15,000 for the year 1922, or, if spread over three years, £5,000 per annum. 13. From the above, I have to report that the subsidy required for the three years 1920-21-22 is as follows :— £ s. d. Subsidy now being paid .. .. .. .. .. 86,000 0 0 Further subsidy required for 1920-21-22 — £24,000 (as above) £10,000 (see 12a above) £5,000 (see 12& above) £39,000 39,000 0 0 Total annual subsidy required for 1920-21-22 .. £125,000 0 0 When making provision for this subsidy it is important to see that it is back-dated to 1920, and that interest at 4 per cent, is added to any portion paid late. 14. The subsidies so far paid to the fund have, in reality, been principally old payments in a new guise, taking the place of compensation for loss of office and gratuities. The Government's contribution to the fund to the 31st December, 1919, amounts in all to £482,500, but if the pensioners had not accepted pensions they would have been entitled to compensation amounting to £290,457, reckoning only to the date they joined the fund. To this latter figure must be added the further compensation which would have been payable in respect of service since they joined the fund —say, about £90,000. In addition to the saving in compensation brought about by the fund, there has also been a saving in gratuities ; for at the rate prevailing during the five years prior to the establishment of the fund (viz., £5,242 per annum), these would have amounted to £62,904 during the ensuing twelve years, whereas the actual amount paid has been only £6,065 —a saving of over £56,800. Moreover, the fund has enabled the Government to retire officers of long service with much greater facility than would otherwise have been the case. General. 15. The change made in the method of investment has enabled the fund to gain advantage of the higher interest-rates now prevailing, the rates earned in the triennium being ajaproximately 1 percent, higher than in the preceding triennium, and l-\ per cent, greater than the valuation rate (4 per cent.). Any interest earned above valuation rates will, of course, form an unanticipated profit of which the fund will, get the benefit as it falls in from time to time. 16. As indicated above, the present subsidy system is based upon the idea that the State will make good, in each year that portion of the current pensions not provided by the contributions paid therefor. Consequently, under the Act, the subsidy is to be arrived, at without looking any further forward than three years. It is a system of deferring the Government's payments till the last possible moment consistent with good faith to the bulk of the contributors ; but, unfortunately, the payments are made even later, owing to various difficulties. A change is urgently needed which will place the subsidies upon a basis at once more automatic and more in accordance with the actual liabilities. At the very least, it should be possible to say that the accumulations of the younger and greater portion of the members are rigorously set aside and maintained intact to assist in meeting the liabilities appertaining to those members. In this connection the following extract from the report of a Commission on the Pension Funds of the City of New York is of interest: — " The Commission has made a broad review of existing pension systems in operation, both in the United States and abroad, on which it, was able to secure information. This inquiry has brought out the fact that the development of pension measures as a result of an experience of over a hundred years is in the direction of equal division of cost between the employer and the employed, and that this tendency applies equally to systems for public employees and for industrial workers." So far, however, the contributions of the Government to the Public Service Superannuation Fund have fallen far short of the standard of an equal division of cost, the Government having contributed only £482,500, as against £1,496,840 contributed by the employees themselves —that is to say, the State has found only one-fourth of the total contributions. 17. The following additional extract from the report of the same committee will help_to clear up some prevailing misapprehensions as to the objects of a pension fund :— " The fundamental objectives of a sound measure are the advantages gained by —(1) Facilitating the discontinuance of the services of those who cannot perform satisfactorily the duties of their positions because of superannuation or other forms of disability ; (2) clearing the lanes of promotion for the young and ambitious ; (3) securing adequate protection for the employee against the major risks of life ; (4) promoting the good will of employees and inducing them to put forth their best efforts ; (5) eliminating appeals for charity and favouritism ; (6) enabling the Government to compete with other public and private employers having pension systems in securing and keeping high-grade men and women in public service." Percy Muter, F.1.A., Actuary to the Government Insurance Department. Wellington, 25th October, 1921.

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APPEN IXIX. TABLE I. Till! BI!N10 If ITS AND CONTRIBUTIONS PROVIDED FOR UV THE AOT. The contributions vary according to the age at the time when the first contribution becomes payable, and arc as follows : — Age 30 and under .. .. .. .. .. 5 per cont. of pay. _ . „ .. Over 30 and not exceeding 35 .. .. .. .. 6 ~ Contributions .. < g 5 40 7 "40 " 45 . . . . 8 „ 45 „ 50 .. . . .. .. 9 „ 50 .. .. .. .. •• •• -.10 "I. On Attainment of Pension — Males at Age 63, or after Forty Yearn' Service ; Females at Age 55, or after Thirty Years' Service. (1.) A pension of one-sixtieth of yearly salary for each year's service, with a limit of fortysixtieths (two-thirds) of salary. Maximum pension for entrants after 24th December, 1909, £300. (2.) Or the option, in lieu thereof, of a return of total contributions. (Note. —The Minister in charge of a Department may retire contributors on pension in the following cases : — (a.) Where the age of a male contributor is not less than OO.Jor of a female contributor not less than 50. (b.) Whore the age of a male contributor is not less than 55, if his length of service is not less than thirty years, (c.) Where the length of service of a male contributor is not less than thirty-five years. In any such exceptional cases the Minister may impose upon the retiring contributor such terms and conditions as to payments into the fund or otherwise as he thinks fit.) 11. On Retirement before Pension Age (on the (hounds of being Medically Unfit for Future Duty). (1.) At any time, on the certificate of two doctors approvod by the Board, a ponsion of onesixtieth of yearly salary for each year's service, limited to forty-sixtieths. Benefits . A (2-) Or the option, in lieu thereof, of a return of total contributions. (Where officers of the Police Force are incapacitated by injuries received on duty the Board may increase the pension up to three-fifths of salary.) 111. On Retirement before Pension Age (on other Grounds than Medical Unfitness). (1.) On voluntary retirement or dismissal for misconduct, a return of total contributions. (2.) On compulsory retirement for any reason other than misconduct, after twenty years' service, a return of total contributions with 3| per cent, interest. IV. At Death, whether before or after becoming entitled to a Retiring-allowance. (1.) Leaving no widow or children : A return of total contributions, less any sums received from the fund during lifetime. (2.) Leaving a widow : — (a.) £18 yearly during widowhood ; or (b.) A return of total contributions, together with such compensation (if any) as the contributor would have been entitled to receive from the Consolidated Fund on compulsory retirement, less any sums received from the fund during lifetime. (If death occurs before retirement the compensation is paid from the Consolidated Fund ; if after retirement, from the Superannuation Fund.) [ (3.) Leaving children : ss. weekly to each child until age 14. (Note. —Tho contributions and pensions are payable monthly, and the pensions are computed on tho average! salary for the last three years.)

TABLE II. Statement of Progress of Active Membership.*

>tew Members. Increase by ! Promotion. Discontinuec .i. Total in Force at En< d of Year. Year. Number. Annual Salaries. ContribuI tions. Salaries. Annual Contributions. Number. Salaries. Annual Contributions. Number. Salaries. Annual Contributions. 1908 .. 1909 1910 1911 1912 191.3 1914 1915 1916 .. 1917 1918 1919 .. 7,546 717 1,520 1,253 | 1,471 1,428 1,777 1,910 1,593 ' 1,063 1,687 1,642 £ £ 1,112,099! 80,526 77,877 5,290 205,427 12,814 134,065 8,196 145,396 8,980 123,4931 7,047 170,471j 9,996 163,335 9,248 129,628 7,326| 121,067 6,763 138,743 7,835! 217,6671 12,927! £ 37,769 58,208 73,936 81,431 96,863 118,571 135,220 103,462 120,532 127,300 176,362 559,178 £ 2,301 3,425 4,509 4,900 5,730 7,022 7,990 5,916 6,711 7,103 9,782 32,282 310 630 472 I 484 584 646 783 939 1,060 1,192 1,400 1,497 £ 42,521 103,414 61,322 69,174 80,409 87,916 103,170 121,152 131,114 151,733 177,708 214,272 £ 3,403 8,575 4,238 5,021 5,540 5,903 7,062 7,870 8,417 9,671 10,864 13,073 7,236 7,323 8,371 9,140 10,027 10,809 11,803 12,780 13,313 13,784 14,071 14,210 £ 1,107,347 1,140,078 1,358,119 1,504,441 1,066,231' 1,820,379 2,022,900 2,168,545 2,287,591 2,384,225 2,521,622 3,084,195 £ 79,364 79,504 92,589 100,670 109,840 118,000 128,930 130,224 141,844 140,039 152,792 184,928 Totals .. 24,213 1,688,892 97,677 : 9,997 1,343,965 89,697 2,739,268 .176,948 * Coinpi iled from Ai inual lU-pi )l'ts.

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TABLE III. Particulars of Discontinuance of Active Membership.*

TABLE IV. Statement of Progress of Pensions.*

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Year. By Deatl u i m 2 -. ao a 2 a a 3 8 ° ■ a -3 g liy W Dis ithdrawal or missal. t| ft jll Old By Pensions Age or Length Mr of Service. S S s'S % 1 * a 'a s a ■9 cm fc idically Unfit. ■Si da', i«rt • a 13 1 1 Ii l§a sz .< CM By Transfer to other Tol Funds. ■a u p/B 3 I 2 fl a § a° a _fc <_ «__ bal discontinued. 181 I gS < Em S3 I p 1908 1909 .. 1910 .. 1911 .. 1912 .. 1913 .. 1914 .. 1915 .. 1916 .. 1917 .. 1918 .. 1919 .. £ 24 41! 37 148 28 768 33 1,634 45 2,222| 40 1,149 53 2,207 99 4,850 134 5,535 145 6,187 27211,733 157 9,794 £ 437 676 380 292 784 1,043' 1,015 1,574, 1,260 1,299 3,129 1,189, 190 417 387 354 450 516 610 741 821 940 1,045 1,232 £ 421 3,454 4,904 5,853 8,388 9,364 9,6591 12,497| 13.920 19,018 21,051 34,940 74 154 12 73 64 73 106 75 71 85 62 89 £ £ 6,658' 20 21 17,039 IS 4,147 13 215 8,631 19 6,992 IS 115 8,716 13 471 11,243 11 974 8,272 21 036 11,692 14 759 14,371 17 946 10,934 16 1,028 13,496 16 ' 20 19 13 19 19 13 11 21 14 17 15 15 £ 61 78 £ 1,838 1,958 1,101 1,314 1,017 5911 637 1,345 75l| 1,252 1,137 828 i 2 3 2 5 6 4 3 3 20 5 6 4 £ 22 5 13 10 21 5 37 78 742 175 196 229 310 630 472 484 584 646 783 939 1,000 1,192 1,400 1,497 £ 484 3,028 5,745 7,712 10,692 10,711 12,374 18,497 20,833 20,739 33,920 45,997 £ 8,933 19,673 5,628 10,237 8,793 10,350 12.895 11,191 13,703 10,922 15,200 15,513 98 Lotals .. 1,0671 46,268 13,078 7,703 144,135 968 5,165122,191 19€ 196 237 13,769 63 1,533 9,997 197,338 149,038 * ilcd from Annual Rcpo Compi Repoi rt>,

Attainment of Pension Age or l.oi (Section 35.) igtli of Service. Retired Medically Unfit. (Section 36.) Year. 1908 1909 lOlOf 1911 1912 1913 1914 1915 1916 1917 1918 1919 Granted. Void by Death. Num- Pension. I i um ' Pension, ber. ber. £ £ 74 6,658 1 57 153 17,038 4 324 84 8,737 12 945 72 8,631 23 2,593 64 ' 6,992 22 2,124 71 8,716 18 2,003 100 11,243 28 2,911 68 8,272 24 2,072 67 11,093 30 3,726 81 14,371 32 3,938 55 10,934 32 4,511 83 13,490 39 4,179 Number. 73 222 294 343 385 438 510 554 591 640 663 707 In Force. Pension. £ 6,601 23,315 31,107 37,14542,013 48,726 57,058 63,258 71,225 81,658 88,081 97,398 Number. 20 19 50 19 18 11 11 20 14 17 15 15 ranted. Pension. Pension. 1^ m " Pension. I £ £ £ 1,838 .. .. 20 1,838 1,959 4 677 j 35 3,120 4,706 5 680 86 7,146 1,314 10 621 95 7,839 1,017 9 I 526 104 8,330 591 14 903 , 101 8,018 637 13 730 I 99 7,925 1,345 5 307 114 8,963 751 9 596 119 9,118 1,252 I 11 1,018 | 125 9,352 1,137 8 491 | 132 9,998 828 14 719 j 133 10,107 Totals 972 126,781 265 29,383 235 17,375 102 7,268 j Death of t Jontribut( (Seetioi Voidb or E or. Family Pension, n 42, &c.) gpirf" JnForce^ Total Pensions. Year. Granted. Qi ranted. Void. In Force. 1™- i Pension, ber. Number. Pension. N ™' Pension, ber. Number. Pension. Number. Pension. Number. Pension. .908 909 910t .911 912 .913 914 .915 916 .917 918 919 30 47 40 40 72 ■90 90 130 99 115 233 116 £ 455 751 635 625 1,086 1,355 1,365 1,945 1,507 1,755 3,474 1,733 1 3 6 11 14 12 12 22 34 30 52 60 £ £ 13 29 442 39 73 1,154 98 107 1,691 163 136 2,153 197 194 3,042 171 272 4,226 176 350 5,415 311 458 7,049 507 523 8,049 425 608 9,379 766 789 12,087 865 ' 845 12,955 124 219 180 131 154 172 201 218 180 213 303 214 £ 8,951 1.9,748 14,078 10,570 9,095 10,662 13,245 11,562 13,951 17,378 15,545 16,057 2 11 23 44 45 44 53 51 73 73 92 113 £ 70 1,040 1,723 3,377 2,847 3,077 3,817 2,690 4,829 5,381 5,768 5,763 122 330 487 574 683 811 959 1,126 1,233 1,373 1,584 1,685 £ 8,881 27,589 39,944 47,137 53,385 60,970 70,398 79,270 88,392 100,389 110,166 120,460 Totals 16,686 257 3,731 160,842 624 40,382 1,102 ,309 * Compiled from Ai inual Reports. f Includes penuioi lers transferred from 'olice Provident Fund.

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TABLE V. Present Annual Pay and Contributions of Officers now in Service.*

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Number. Present Annual Pay. Present Annual Contributions. Age attained. Age attained. Male. Female. Male. Female. Male. Female. £ 65 706 7,877 28,695 43,154 50,873 64,670 66,073 65,472 6.1,972 56,516 53,036 60,583 65,016 74,267 83,840 80,475 69,351 76,611 87,917 87,534 78,429 73,522 74,940 82,237 84,015 78,117 64,742 74,087 80,636 66,066 62,472 56,211 57,244 53,446 51,828 52,123 56,094 51,066 42,028 41,708 36,733 35,438 33,235 29,383 27,354 26,886 30,827 26,496 22,695 18,134 13,138 6,842 7,145 485 295 1,240 187 621 £ £ 3 35 394 1,435 2,158 2,544 3,233 3,304 3,274 3,099 2,826 2,652 3,029 3,251 3,713 .4,192 4,037 3,540 3,900 4,471 4,497 4,066 3,907 4,004 4,426 4,672 4,391 3,641 4,449 5,047 4,156 4,017 3,558 3,943 3,774 3,668 3,761 4,086 3,923 3,373 3,364 2,995 2,932 2,890 2,639 2,430 2,442 2,802 2,480 2,171 1,797 1,302 682 712 48 29 124 19 62 £ 4 .6 .6 .7 .8 .9 !0 !1 !2 !8 14 !5 !6 !7 18 19 10 II 12 13 14 15 16 17 18 19 to 11 12 13 t4 15 16 17 18 19 iO il ,2 S3 >4 i5 SO )7 )8 S9 !0 H >2 S3 54 55 iO i7 18 >9 n 12 1 11 112 367 485 484 534 476 432 371 320 275 295 296 320 342 329 278 295 333 333 298 274 281 289 303 273 232 256 261 219 207 196 181 179 162 162 166 151 131 124 104 99 96 84 72 80 85 70 66 48 39 17 16 2 2 2 1 2 1 6 53 106 142 171 183 158 139 103 110 91 106 76 62 58 42 40 48 56 51 43 34 43 26 37 33 26 24 35 25 17 21 13 14 16 11 16 14 8 6 3 6 6 8 5 1 3 65 433 4,005 9,045 13,101 17,410 19,312 17,867 15,937 12,293 13,413 11,453 • 14,244 10,597 8,592 8,357 6,474 6,067 7,838 8,877 8,779 7,176 6,165 7,614 4,952 7,066 5,972 4,606 4,261 5,696 4,722 2,885 3,448 2,196 2,790 3,002 1,795 3,082 2,664 1,603 822 477 1,073 926 1,290 903 182 457 3 22 200 452 655 870 966 893 797 615 671 573 712 530 430 418 324 311 405 462 452 386 334 427 277 406 374 295 272 387 309 203 253 164 204 221 144 255 220 132 67 41 94 88 118 84 18 46 14 15 16 17 18 19 20 21 22 23 24 25 20 27 28 29 30 31 32 38 31 35 36 37 38 39 40 41 42 43 41 45 46 47 -is -19 50 51 52 53 54 55 56 57 58 59 60 61 02 63 61 05 00 07 68 69 71 72 73 1 ios 20 Totals 11,919 2,297 2,782,848 302,179 168,369 16,600 * Compiled from cards.

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TABLE VI. Classification of New Pensions granted during the Period from 1st January, 1917, to 31st December, 1919, showing the Ages at which they were granted.*

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Age at which Pension granted. Attainment of Pension Age or length of Service. (Section 35.) Number. Retired medically unfit. (Section 30.) "umber. Amount of Pension. F. Total. I Widows and Children. (Sec. 42, &c.) . ° a 5a so £ 3,1 1 Sn S Number. Total. Ageat which Pension granted. M. F. Total. of Pension. M. M. F. Total. Amount of Pension. 80 .. 75 .. 74 .. 73 .. 72 .. 71 .. 70 .. 69 .. 68 .. 67 .. 66 .. 65 .. 64 .. 63 .. 62 .. 61 .. 60 .. 59 .. 58 .. 57 .. 56 .. 55 .. 54 . . 53 .. 52 .. 51 .. 50 .. 49 .. 48 .. 47 .. 46 .. 45 .. 44 .. 43 .. 42 .. 41 .. 40 .. 39 .. 38 .. 37 .. 30 .. 35 .. 34 .. 33 .. 32 .. 31 .. 30 .. 29 .. 28 .. 27 .. 26 .. 25 . . 24 .. 23 .. 22 .. 21 .. 20 .. 19 .. 14 .. 13 .. 12 .. 11 .. 10 .. 9 .. 8 .. 7 .. 6 .. 5 .. 4 .. 3 .. 2 .. 1 0 .. 1 I 1 5 16 16 47 14 6 10 10 18 II 11 10 12 6 3 3 2 1 2 2 1 1 5 2 i i i 3 1 1 5 16 10 47 14 5 II II 23 13 11 11 12 7 3 3 2 1 2 £ s. d. 373 15 0 271 14 0 38 0 0 1,227 18 0 2,208 15 0 2,638 16 0 6,776 15 0 2,275 13 0 1,181 12 0 2,237 2 0 2.039 4 0 3,677 4 0 2,729 4 0 2,562 11 0 2,352 13 0 2,394 4 0 1,263 7 0 637 4 0 722 1 0 519 16 0 194 11 0 415 4 0 63 4 0 i i 3 2 1 2 I 2 1 3 1 1 2 2 1 1 3 *2 i i i i 3 2 1 2 1 2 1 3 1 1 2 2 1 1 3 1 3 £ s. d. 57 9 0 65 15 0 335 4 0 302 7 0 49 3 0 142 19 0 77 19 0 197 14 0 68 3 0 481 3 0 164 12 0 103 12 0 165 2 0 215 8 0 105 9 0 10 4 0 216 17 0 29 4 0 44 3 0 1 3 1 3 1 1 2 4 2 3 1 3 1 4 3 4 2 6 3 2 1 1 I. 2 2 4 3 4 3 3 1 3 5 6 6 8 9 7 5 4 4 3 6 3 6 2 7 4 5 3 3 4 5 1 1 1 £ 18 54 18 54 18 18 36 72 36 54 18 54 18 72 64 72 36 108 54 36 18 18 18 36 36 72 54 72 54 54 18 54 90 108 108 144 162 126 90 72 72 54 108 54 108 36 126 72 90 54 54 72 90 18 18 18 l l l 5 16 16 47 14 6 10 11 18 14 11 12 13 8 4 5 2 2 5 1 1 2 2 1 1 3 2 1 3 1 3 1 3 2 4 2 3 1 3 1 5 4 9 4 0 4 2 2 1 1 2 2 4 3 4 3 4 1 3 5 0 7 9 9 7 6 4 4 3 6 3 6 2 7 4 5 3 3 4 5 I 2 1 1 3 I 3 1 4 3 5 7 19 17 50 15 6 15 15 27 18 17 16 15 10 5 6 4 4 9 4 5 5 6 2 4 8 6 7 11 9 7 6 4 5 3 7 4 7 2 8 5 5 3 4 7 7 1 2 1 1 £ s. d. 18 0 0 54 0 0 18 0 0 54 0 0 18 0 0 391 15 0 307 14 0 110 0 0 1,263 18 0 2,262 15 0 2,656 16 0 6,830 15 0 2,293 13 0 1,239 1 0 2,309 2 0 2,158 19 0 3,749 4 0 3,100 8 0 2,670 11 0 2,709 0 0 2,479 7 0 1,424 6 0 733 3 0 937 15 0 555 16 0 298 14 0 968 7 0 218 12 0 175 12 0 219 2 0 332 12 0 123 9 0 64 4 0 306 17 0 108 0 0 137 4 0 188 3 0 162 0 0 126 0 0 142 15 0 72 0 0 106 10 0 54 0 0 120 10 0 117 14 0 192 4 0 36 0 0 134 13 0 110 14 0 90 0 0 54 0 0 81 13 0 102 15 0 112 5 0 18 0 0 23 19 0 18 0 0 3 5 0 ' 117 0 0 260 0 0 208 0 0 273 0 0 247 0 0 273 0 0 377 0 0 260 0 0 260 0 0 182 0 0 286 0 0 247 0 0 195 0 0 286 0 0 143 0 0 80 75 74 73 72 71 70 69 08 07 00 65 04 03 02 01 60 59 58 57 56 55 54 53 52 51 50 49 48 47 40 45 44 43 42 41 40 39 38 37 30 85 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 14 13 12 11 10 9 8 7 0 5 4 3 2 1 0 i i 5215 0 i 1 34 10 0 1 1 1 1 1 1 1 12 10 0 03 14 0 84 4 0 1 1 1 i l 1 1 8 13 0 38 14 0 1 1 l 3 2 1 3 2 27 18 0 30 15 0 22 5 0 1 3 2 i 1 5 19 0 i i :i' 5 0 1 9 20 16 21 19 21 29 20 20 14 22 19 15 22 II 117 260 208 273 247 273 377 260 260 182 286 247 195 286 143 136 142 278 Totals 219 38,800 7 0 43 47 3,217 4 0 404 6,962 384 346 730 48,979 11 0 205 14 *Coi ■piled from cards.

H.—26a

8

TABLE VII. Statement of the Statistical Basis upon which the Valuation has been made. 1. The proportions of contributors dying, withdrawing, and retiring at each age were as far as possible got from the experience of the fund itself up to 1913, the death-rates among males embracing also the experience of the Government Railways Salaried Division (1903-12), and tho rate of retirement among females the experience of female teachers in the Teachers' Fund. The death-rates of female contributors were adopted from the experience of female teachers in Britain (Mr. George King), after comparison with the somewhat meagre data of the fund itself. Owing to the disturbing influence of the war, little use could be made of the statistics of the fund subsequent to 1913. The resultant Experience Table is appended (Table VIII) ; also the Life and Service Table deduced therefrom (Table IX). 2. A scale of average salaries was constructed from current data of the fund, for the purpose of deducing ratios of increase to be applied to tho actual salaries of contributors as at 31st December, 1919. 3. The mortality of pensioners was taken according to tho experience of the Public Service, Teachers', and Railways Superannuation Funds combined up to 1919, whilst for the female pensioners the table used on the last occasion was employed—viz., a table constructed with the guidance of the limited experience available, giving rates somewhat below those of the Now Zealand population. 4. Widows' and children's benefits were valued on the same basis as before —viz., the statistics of the fund combined with death-rates of widows and children from Dr. Farr'e " Healthy English Tables," and rates of remarriage of widows from the statistics of the general population (widows and spinsters).

TABLE VIII. EXPERIENCE TABLE. Rates per Cent, per Annum of Withdrawal, Mortality, and Retirement.

Ooni iributing Membei rs : Males. Ci mtributing Members : Females. Age. Rate of Withdrawal (Public Service Superannuation Fund). (Combed **w* N ( e C w°tSand Service K «P«- am at on Tund) "■*>■ Rate of Withdrawal (Public Service Superannuation Fund). Rate of Retirement Bate of (Combined Mortality Now Zealand (Assumed). Superannuation Funds). Age. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 6-50 6-40 6-28 6-16 6-03 5-90 5-75 5-61 5-46 5-30 5-13 4-95 4-76 4-55 4-30 410 3-90 3-73 3-57 3-43 3-32 3-22 3-12 302 2-92 2-82 2-72 2-62 2-52 2-42 2-32 2-22 2-12 2-01 1-91 1-81 1-70 1-60 1-50 1-40 1-30 1-20 1-09 0-98 0-88 0-73 0-52 0-20 0-20 0-20 0-20 0-20 0-21 0-21 0-22 0-23 0-10 0-24 0-10 0-25 0-10 0-26 0-10 0-27 0-10 0-28 0-10 0-29 0-10 0-30 0-10 0-32 0-12 0-34 0-14 0-36 0-16 0-38 0-18 0-40 0-20 0-42 0-20 0-44 0-20 0-46 0-21 0-49 0-22 0-52 0-23 0-53 0-24 0-54 0-25 0-55 - 0-26 0-57 0-27 0-59 0-28 0-60 0-29 0-63 0-30 0-67 0-41 0-70 0-53 0-73 0-68 0-78 0-88 0-82 1-12 0-86 1-37 0-92 1-69 0-98 2-07 1-05 2-52 1-15 3-05 1-25 3-74 1-37 4-57 1-52 5-81 1-69 7-91 1-88 13-00 2-12 21-20 2-40 29-50 3-00 315 3-40 3-90 5-50 7-40 9-30 11-10 12-80 13-70 13-90 13-90 13-70 13-30 12-80 12-00 11-00 10-00 9-20 8-60 8-10 7-75 7-40 7-10 6-90 6-70 6-50 6-20 5-90 5-50 5-10 4-56 3-85 0-22 0-23 0-24 0-25 0-26 0-27 0-29 0-30 0-31 0-31 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-32 0-25 0-32 0-25 0-33 0-25 0-33 0-25 0-33 0-25 0-33 0-30 0-34 0-40 0-34 0-50 0-36 0-60 0-38 0-70 0-40 0-88 0-44 1-08 0-48 1-38 0-52 1-83 0-57 2-58 0-63 3-63 0-69 4-63 0-76 5-90 0-83 7-43 0-90 9-25 0-98 11-88 1-07 14-63 1-15 17-38 1-25 19-88 1-34 21-30 1-45 22-50 1-56 25-00 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64

H.—26a.

TABLE IX. LIFE AND SERVICE TABLE. Based upon the Rates per Cent. per Annum of Withdrawal, Mortality, and Retirement given in Table VIII applied to 100,000 Entrants at Age 15.

2—H. 26a.

9

\hi les. Fema! les. Age. Existing in Service. Withdrawals. deaths. «*»; Average Salary.* Existing in Service. Withdrawals. T)e-iths -i«nrc- Average , Deaths. mentg Salary .. Age. Deaths. Retirements. Average Salary.* 15 .. 16 .. 17 .. 18 .. 19 .. 20 .. 21 .. 22 .. 23 .. 24 .. 25 .. 26 .. 27 .. 28 .. 29 .. 30 .. 31 .. 32 .. 33 .. 34 .. 35 .. 36 .. 37 .. 38 .. 39 .. 40 .. 41 .. 42 .. 43 .. 44 .. 45 .. 40 .. 47 .. 48 .. 49 .. 50 .. 51 .. 52 .. 53 .. 54 .. 55 .. 56 .. 57 .. 58 .. 59 .. 60 .. 01 .. 62 .. 63 .. 04 .. 65 .. 100,000 93,300 87,143 81,495 76,312 71,557 67,185 63,180 59,490 50,052 52,891 49,992 47,337 44,909 42,094 40,692 38,861 37,174 35,609 34,152 32,790 31,504 30,294 29,155 28,080 27,060 26,094 25,183 24,324 23,514 22,748 22,022 21,337 20,087 20.047 19,418 18,793 18,101 17,519 10,805 16,189 15,485 14,746 13,966 13,133 12,237 11,250 10,112 8,607 6,600 4,495 6,500 5,971 5,473 5,020 4,602 4,222 3,864 3,545 3,248 2,970 2,714 2,475 2,253 2,044 1,835 1,608 1,510 1,387 1,272 1,171 1,089 1,015 945 880 820 763 710 660 613 569 528 489 452 416 383 351 320 290 263 236 210 186 160 136 116 90 58 200 186 175 163 153 150 141 139 137 135 132 130 128 126 124 122 124 126 128 130 131 132 133 134 138 141 138 136 134 134 134 132 134 . 139 140 142 147 149 151 155 159 163 170 175 180 186 190 190 182 158 59 50 53 50 47 45 43 41 47 52 57 01 06 63 61 61 02 62 63 63 63 63 64 64 64 85 100 132 165 203 240 285 335 390 450 522 600 711 890 1,315 1,825 1,947 4,495 £ 05-9 71-4 80-1 91-0 105-2 119-9 135-5 150-5 165-5 179-7 193-0 200-0 219-4 230-2 239-4 245-8 251-4 250-0 200-0 203-3 266-6 269-8 273-0 276-2 279-5 283-2 287-0 290-7 294-4 297-0 300-0 304-0 307-5 311-0 310-8 322-0 327-0 332-0 337-0 341-4 345-5 349-6 353-2 355-4 357-0 358-2 359-0 359-6 360-0 360-0 360-0 100,000 96,781 93,510 90,107 86,367 81,394 75,150 07.944 00,198 52,307 44,978 38,584 33,099 28,460 24,584 21,358 18,727 16,607 14,893 13,438 12,205 11,146 10,218 9,403 8,676 8,014 7,409 6,857 6,358 5,901 5,487 5,106 4,753 4,420 4,232 4,007 3,740 3,431 3,083 2,080 2,265 1,845 1,455 1,126 856 629 3,000 3,049 3,179 3,515 4,749 6,024 6,989 7,542 7,705 7,100 0,252 5,303 4,534 3,785 3,147 2,503 2,060 1,001 1,370 1,150 989 864 756 668 598 537 482 425 375 324 280 233 183 £ 219 .. 68-9 15 222 .. 71-7 16 224 . . 77-1 17 225 .. 84-3 18 224 .. 91-5 19 220 .. "98-9 20 217 . . 105-2 21 204 .. 110-9 22 186 . . 115-4 23 163 .. 119-5 24 142 . . 123-7 25 122 .. 128-0 20 105 .. 132-2 27 91 .. 136-6 28 79 .. 141-7 29 68 .. 145-7 30 60 . . 150-4 31 53 .. 154-5 32 48 37 159-4 33 43 34 163-7 34 40 30 168-0 35 36 28 171-8 36 33 26 174-3 37 31 28 175-7 38 29 35 176-6 39 28 40 177-3 40 26 4.4 177-6 41 26 48 177-8 42 26 56 178-0 43 20 64 178-1 44 26 75 178-1 45 27 93 178-1 46 27 123 178-1 47 28 160 178-1 48 29 196 178-1 49 30 237 178-1 50 31 278 178-1 51 31 317 178-1 52 30 367 178-1 53 28 393 178-1 54 26 394 178-1 55 23 367 178-1 56 19 310 178-1 57 10 254 178-1 58 13 214 178-1 59 629 178-1 60 01 62 63 64 65 219 222 224 225 224 220 217 204 180 103 142 122 105 91 79 68 60 53 48 43 40 36 33 31 29 28 26 26 26 26 26 27 27 28 29 30 31 31 30 28 26 23 19 16 13 37 34 30 28 26 28 35 40 4.4 48 50 64 75 93 123 160 196 237 278 317 367 393 394 367 310 254 214 629 £ 68-9 71-7 77-1 84-3 91-5 '98-9 105-2 110-9 115-4 119-5 123-7 128-0 132-2 136-6 141-7 145-7 150-4 154-5 159-4 103-7 168-0 171-8 174-3 175-7 176-6 177-3 177-6 177-8 178-0 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 178-1 *T] applied lese salary scales arc not in themseh ;o the actual present salary of each c< -es assumed in making jntribntor. c valuation, but rather the ratios of increase derived herefrom are

10

H.—26a

TABLE X

SUMMARY OF PUBLIC SERVICE SUPERANNUATION RESULTS. Valuation Balance-sheet as at 31st December, 1919. Liabilities. ~ ~ Males— £ £ Value of 789 pensions for £105,099 19s. 9d. per annum already granted .. .. 926,463 394 pensions for £7,092 per annum granted to widows of contributors or pensioners.. .. .. .. .. .. .. .. 78,002 ~ 451 pensions for £5,803 per annum granted to children of deceased contributors or pensioners .. .. .. .. .. .. 27,331 „ prospective pensions for back service .. .. .. .. .. 2,860,043 ~ ~ for future service .. .. .. .. 2,100,240 „ „ to widows .. .. .. .. .. 384,120 „ to children .. .. .. .. .. 73,887 ~ return of contributions on death .. .. .. .. .. 35,034 ~ ~ on withdrawal .. .. .'. .. 518,319 7,069,445 Females— Value of 51 pensions for £1,804 12s. Id. per annum already granted .. .. 20,314 „ prospective pensions for back service .. .. .. .. .. 158,677 „ „ for future service .. .. .. .. 162,388 ~ return of contributions on death or withdrawal .. .. .. 76,157 417,536 £7,486,981 Assets. £ Accumulated funds .. .. .. ... .. .. .. .. .. 1,288,198 Value of future contributions from males .. .. .. .. .. .. .. 1,934,577 „ „ from females .. .. .. .. .. .. .. 121,217 subsidy of £86,000 per annum .. .. .. .. .. .. .. 2,150,000 future increases in subsidy to be provided .. .. .. .. .. .. 1,992,989 £7,486,981

TABLE XI. Statement showing Subsidies paid as compared with Subsidies required under the System indicated in the Act.

Approximate Coat of Paper, —Preparation, not given: printing (4,475 copies), t;}o.

Authority : W. A. G. Skinnbk, Government Printer, Wellington.—l 922.

Price 6d.]

Year. Subsidy required. Subsidy paid. Shortage. Shortage accumulated at 4 per Cent, to 1922. I 1908 .. 1909 1910 .. 1911 .. 1912 .. 1913 .. 1914 .. 1915 .. 1916 .. 1917 .. 1918 1919 .. £ (Say) 20,000 (Say) 20,000 (Say) 22,500 48,000 48,000 48,000 00,000 66,000 66,000 86,000 86,000 80,000 £ 20,000 20,000 22,500 23,000 23,000 48,000 48,000 48,000 48,000 48,000 48,000 80,000 £ £ 25,000 25,000 38,483 37,003 18,000 18,000 18,000 38,000 38,000 24,033 23,086 22,775 46,231 44,453 Totals 662,500 180,000 237,204 182,500