GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Appendix to the Journals of the House of Representatives, 1927 Session I, D-05

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1927. NEW ZEALAND

GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Laid before Parliament in -pursuance of Section 124 of the Government Railways Act, 1926.

The Board has the honour to transmit, for the information of Parliament, the following report upon the transactions in connection with the Government Railways Superannuation Fund for the year ended 31st March, 1927. The Revenue Account, Balance-sheet, and statements in connection therewith will be found appended. The balance of income over expenditure for the year amounts to £123,689 Os. 6d., as compared with £127,758 ss. 4d. for the previous year. Subsidy. —The sum of £170,000 was paid into the fund by the Working Railways Department. During the previous year £145,000 was received from the Working Railways Department, and £25,000 from the Consolidated Fund. Life Allowances. —The expenditure on account of life allowances to members amounts to £215,250 2s. Id., an increase of £16,360 6s. 4d. as compared with the figures for the previous year. The increase under this heading is not so marked as in the previous two years, being £925 18s. sd. less than the increase shown for the year ended 31st March, 1926, and £8,004 6s. 2d. less than the increase for the year ended 31st March, 1925. On referring to Table A, Statement of Allowances, it will be seen that the average amount of the 138 allowances granted during the year is £186 ss. Id., and that the average amount of the 87 allowances discontinued is £100 17s. 2d. Allowances to Widows and Children. —The expenditure under the heading of allowances to widows and children remains at practically the same figure as in last year's report. The sum of £12,608 17s. Id. was transferred from the Working Railways Account during the year on account of the increased payments to widows and children as provided in section 114, Part 111, of the Government Railways Act, 1926. Members' Contributions. —The receipts under the heading of members' contributions show a steady increase, being £157,784 145., as compared with £153,902 19s. 9d. for the previous year, an increase of £3,881 14s. 3d. Table B, Statement of Contributors, discloses that there is a net increase of 193 members, that the contributors at 5 per cent, have increased by 242, and that contributors at 3 per cent, and 4 per cent, have decreased by 60 and 56 respectively. Contingent Contributors. —During the year under review regulations were gazetted to enable employees who were not members of the permanent staff to contribute to the fund, so that in the event of them subsequently becoming permanently appointed they would not be faced with having to pay double deductions on account of service prior to permanent appointment. Two hundred and twenty-eight employees elected to avail themselves of the regulations, and at the end of the year the sum of £2,369 16s. lid. stood to their credit in the fund, under the heading of casual employees' contingent contributions. Investment of the Fund. —The Investment Account has been increased during the year to the extent of £121,000. Loans maturing at 4f, 4f, and 5f per cent, have been promptly reinvested on more satisfactory terms. All moneys not required in the Current Account have been transferred to the Investment Account without delay. The interest amounts to £50,715 14s. 7d., an increase of £6,965 Is. lid. as compared with the figures for the previous year. Reference to Table C, Statement of Investments, shows the average rate of interest on securities held at the 31st March, 1927, as 5-79 per cent., and the average rate earned on the mean funds for the year 5-708 per cent., as against 5-76 per cent, and 5-684 per cent, respectively for the previous year. The expenditure under the heading " Public Trust charges " is based on the interest-collections, and is consequently £152 18s. Id. in excess of the figures for the previous year. Approval was received for the continuance of the cost-of-living bonus to annuitants in cases of special hardship where the allowance was less than £100, the amount of bonus granted being sufficient to bring the allowance up to £100, but with a maximum bonus of £26. The bonus is provided for out of the Working Railways Account, and is not a charge on the Superannuation Fund. At the 31st March, 1927, there were 1,418 members, 459 widows, and 505 children, making a total of 2,382 persons actually on the fund, involving an annual liability of £237,083 14s. 2d. J. G. Coaths, Chairman of the Government Railways Superannuation Fund Board,

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Table A.—Statement of Allowances for the Year ended 31st March, 1927.

A+4 . . _ Seetion l02. Section 111.. Section 113. Section 113. Total Retiring and other On Attainment of Retiring Age or for Medically Unfit. Widow?. Children. Allowances. Length of service. J Number. I Number. Number. Number* 1 Annual Amount. Annua. Amount. j ~ Annua. Amount. M. F. ! Total. M. F. Total. I M. F. Total.; M. F. Total. Retiring and other allowances — £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Existing at beginning of year .. 1,083 .. 1,083 177,677 12 10 283 1 284 27.650 11 11 444 13,764 0 0 253 268 521 13,546 0 0 1,619 713 2,332 232,638 4 9 Granted during year at retirement 119 .. 119 23,614 8 0 19 .. 19 2,088 16 0 32 992 0 0 34 27 61 1,586 0 0 172 59 231 28,281 4 0 Total .. .. 1,202 .. 1,202 201,292 0 10 302 1 303 29,739 7 11 476 14,756 0 0 287 295 582 15,132 0 0 1,791 772 2,563 260.919 8 9 Discontinued during year .. 72 .. 72 7,404 8 1 14 1 15 1,370 6 6 17 527 0 0 37 40 77 2,002 0 0 123 58 181 11.303 14 7 Existing at end of year .. 1,130 .. 1,130 193,887 12 9 288 •.. 288 28,369 1 5 459 14,229 0 0 250 255 505 13,130 0 0 'l,668 714 2,382 249.615 14 2 Particulars of Retiring and other Allowances discontinued during the Year. How discontinued —• By death .. .. .. 72 72 7,404 8 1 14 1 15 1,370 6 6 3 93 0 0 .. 86 4 90 8.867 14 7 By expiry .. .. j .. •• j 14 434 0 0 j 37 40 77 2,002 0 0 37 54 91 2,436 0 0 Total .. 72 i 72 j 7,404 8 1 14 1 15 1,370 6 6 17 527 0 0 : 37 40 77 2,002 0 0 123 58 > 181 11,303 14 7 Progress of Retiring and other Allowances since establishment of the Fund to 31st March, 1927. Total granted .. .. .. 1,913 1 1,914 261,953 2 2 492 i 1 493 i 42,864 17 3 695 18,945 0 0 681 656 1337 25,753 0 0 3,086 13534,439 349,515 19 5 Total discontinued .. .. 783 1 784 68,065 9 5 204 1 205 14,495 15 10 236 4,716 0 0 431 401 832 12,623 0 0 1,418 639 2,057 99.900 5 3 Total existing at 31st March, 1927.. 1,130 .. 1,130 193,887 12 9 288 .. 288 28,369 1 5 459 14,229 0 0 250 255 505 13,130 0 0 1,668 714|2, 382 249,615 14 2 1 ! 1 ' ' ; ' 1: ) 1 [ Less amount receivable from the Consolidated Fund on account of increased payments to widows and children .. .. .. .. .. .. .. .. .. 12,532 0 0 £1237,083 14 2

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Table B. —Statement of Contributors.

Table C.—Statement op Investments. 1927. 1926. Funds invested at 31st March— f s. a. £ Bl d. At 4| per cent. .. .. .. .. .. 5,500 0 0 7,000 0 6 „ 4f .. .. .. .. .. .. 300 0 0 „ 5 „ .. .. .. .. .. 17,535 0 0 17,535 0 0 „5£ „ .. .. .. .. .. 152,045 0 0 152,045 0 0 „ 5| „ .. .. .. .. .. 80,120 0 0 80,120 0 0 „ 5| „ .. .. .. .. .. .. 22,700 0 0 ~ 6 „ .. .. .. .. .. 658,135 15 8 503,235 0 0 „ 6| „ .. .. .. .. .. 7,500 0 0 17,525 19 11 Repayments during March and held for investment as from Ist April .. .. .. .. .. .. 1,725 4 3 1,100 0 0 £922,560 19 II £801,560 19 11 Per Cent. Per Gent. Average rate of interest on securities held at 31st March .. 5-79 5-76 Average rate of interest earned on the mean funds . . 5-708 5-684 Table D.—Progress of the Fund. Balance forward. Allowances granted. £ s. d. £ s. d. 1903 .. .. .. .. .. 7,056 11 9 1904 .. .. .. .. .. 40,357 17 3 12,010 14 8 1905 .. .. .. .. .. 68,670 7 8 8,519 7 8 1906 .. .. .. .. .. 90,984 1110 6,348 13 7 1907 .. .. .. .. .. 110,736 12 3 4,398 14 11 1908 .. .. .. .. .. 126,642 18 11 7,332 7 11 1909 .. .. .. .. .. 157,151 14 9 6,359 11 0 1910 .. .. .. .. .. 173,876 1 8 11,828 0 6 1911 .. .. .. .. .. 207,242 7 11 8,064 11 5 1912 .. .. .. .. .. 233,457 8 6 7,065 16 4 1913 .. .. .. .. .. 264,455 5 4 8,568 6 6 1914 .. .. .. .. .. 295,469 11 6 9,865 17 8 1915 .. .. .. .. .. 346,155 18 2 11,871 14 3 1916 .. .. .. .. .. 362,810 4 2 9,662 2 5 1917 .. .. .. .. .. 377,585 2 1 11,733 11 11 1918 .. .. .. 373,097 12 7 8,386 4 0 1919 .. .. .. .. .. 363,804 4 4 9,252 17 8 1920 .. .. .. .. .. 408,232 10 8 20,341 7 3 1921 .. .. .. .. .. 464,490 17 0 20,346 8 9 1922 .. .. .. .. .. 543,531 10 8 23,050 2 0 1923 .. .. .. .. .. 584,219 2 4 22,791 1 0 1924 .. .. .. .. .. 671,827 6 6 21,272 4 0 1925 .. .. .. .. .. 734,112 8 11 36,409 14 0 1925 (increased allowances to widows and children) .. .. .. .. .. 12,246 0 0 1926 .. .. .. .. .. 862,139 3 6 23,509 6 0 1927 .. .. .. .. .. 985,828 4 0 28,281 4 0 £ s. d. 349,515 19 5 Less members died, &c. .. .. . . 99,900 5 3 Less liability of Consolidated Fund on account increased payments to widows and children .. 12,532 0 0 — 112,432 5 3 Annual liability at 31st March, 1927 .. .. .. £237,083 14 2

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I I I - I ! I ' | 3 per j 4 per 5 per ; 6 per j 7 per 8 per 9 per rJ , . , | Cent. Cent-, j Cent. | Cent. I Cent. Cent. Cent. Contributors at commencement of year 2,446 624 8,700 1,359 221 16 5 13,371 New contributors during year .. .. .. 628 108 16 .. .. 752 Total .. .. .. 2,446 624 9,328 1,467 237 16 5 14,123 Contributors discontinued during year 60 56 385 47 8 1 1 559 Total contributors at 31st March, 1927 2,386 568 8,942 1,420 229 15 4 13,564

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Statement of Accounts in accordance with Section 123, Government Railways Act, 1926. Revenue Account for the Year ended 31st March, 1927.

EXPENDITURE. I 1926-27. 1925-26. I INCOME. ! 1926-27. j 1925-26. £ s. d. £ s. d. £ s. d. £ s. d. To Retiring-allowances to members .. .. .. 215,250 2 1 198,889 15 9 By Members'contributions .. .. .. .. 153,914 15 6 147,976 11 2 Allowances to widows and children .. .. .. 27,489 2 7 27,064 19 9 Members'contributions on account of casual service .. : 3,869 18 6 5,926 8 7 Refunds of total contributions .. .. .. 20,986 5 4 23,552 17 8 Fines .. .. .. .. .. .. 141 10 0 219 0 0 Refunds of contributions in excess of allowances drawn by 768 2 7 342 10 8 Subsidies — deceased beneficiaries Consolidated Fund .. .. .. .. .. 25,000 0 0 Compensation under the Government Railways Act of 1887 37 1 3 17 2 10 Working Railways .. .. .. .. 170,000 0 0 145,000 0 0 Transfers to other funds .. .. .. .. 108 14 1 200 13 11 Working Railways, on account of increased allowances ; 12,608 17 1 12,464 16 9 Interest remitted .. .. .. .. .. 47 9 3 .. to widows and children Administration charges — Amalgamated Society of Railway Servants, on account 14 19 2 199 14 2 Travelling-expenses of Board members .. .. 56 10 0 19 0 8 of M. J. Mack Public Trust Office commission .. .. .. 1,190 12 0 1,044 10 2 Interest .. .. .. .. .. .. 50,715 14 7 43,750 12 8 Public Trust mortgage inspection fees .. .. 6 16 3 .. Commission on Government Life Insurance collections .. 1153 4 10 3 Audit Office fees ... .. .. .. 50 0 0 50 0 0 Salaries .. .. .. .. .. .. 1,413 3 2 1,391 12 2 Postages .. .. .. .. .. .. 104 16 1 129 16 8 Printing and stationery .. .. .. .. 79411 80 8 0 , Balance carried down, being excess of income over expendi- 123,689 0 6 127,758 5 4 ture for the year — 391,277 0 1 380,541 13 7 391,277 0 1 380,541 13 7 To Balance accumulated funds at 31st March, 1927. .. .. 985,828 4 0 862,139 3 6 By Accumulated funds brought forward on 1st April, 1926 .. i 862,139 3 6 734,112 8 11 Amounts unclaimed written off .. .. .. .. 268 9 3 Balance brought down .. .. .. .. 123,689 0 6 127,758 5 4 £985,828 4 0 £862,139 3 6 i £985,828 4 0 \£862,139 3 6

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Statement of Accounts, etc.—continued. Balance-sheet as at 31st March, 1927.

LIABILITIES. 1926-27. 1925-26. ij ASSETS. 1926-27. 1925-26. ; 1 II I £ s. d. £ s. d. £ s. £ s. el. Accumulated funds as per Revenue Account .. 985,828 4 0 862,139 3 6 Investment Account — £ s. d. Casual employees' contingent contributions .. .. 2,369 16 11 .. Investments .. .. .. 920,835 15 8 Retiring and other allowances due (not paid) — Gash in hand .. .. .. 1,725 4 3 Members .. .. .. .. .. .. 575 5 8 838 2 0 922,560 19 11 801,560 19 11 Widows and children .. .. .. .. 119 4 7 103 15 11 Current Account —Cash in hand .. .. .. 24,995 5 7 17,679 3 7 Refunds of contributions authorized (not paid) .. 1,182 5 5 1,182 3 5 Contributions in transit .. .. .. .. 11,563 9 7 13,590 4 8 Transfers to other funds authorized (not paid) .. .. 4 14 6 4 13 10 Contributions outstanding .. .. .. .. 1,194 3 4 1,438 7 4 Interest paid in advance .. .. .. .. 308 13 3 132 2 9 Contributions due by members in respect to casual service .. 9,644 18 11 10,643 15 5 Commission due to Public Trustee .. .. 104 8 4 160 3 2 Working Railways — , Farm inspection fee due to Public Trustee .. .. 2 12 3 .. On account of cost-of-living bonus .. .. .. 412 12 5 440 7 0 On account of additional allowances to widows and children 984 5 7 1,115 11 1 Amalgamated Society of Railway Servants —Subsidy .. .. 9 7 7 Allowances recoverable .. .. .. .. 10 0 0 28 0 0 Refunds repayable . .1 .. .. .. .. 141 14 6 Interest due, not paid .. .. .. .. .. 7,012 1 8 7,778 8 3 Interest accrued but not due .. .. .. .. 11,973 14 5 10,275 19 9 Sundry Dr. (insurance premium) .. .. .. 1 19 0 £990,495 4 11 £864,560 4 7 j £990,495 4 11 £864,560 4 7

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Statement of Accounts, etc. —continued'. Receipts and Payments Account for the Year ended 31st. March, 1927. Dr. Receipts. Gr. Payments. £ s. d. To Balance in hands of Public Trustee on 31st £ s. d. By Retiring-allowances paid to members .. 215,507 18 3 March, 1926 .. .. .. .. 17,679 3 7 Allowances to widows and children .. 27,438 9 8 Contributions by staff .. .. .161,301 8 4 Contributions refunded to members who have Contributions by contingent contributors .. 2,082 13 9 left the service .. .. .. 21,127 17 10 Fines .. .. .. .. .. 160 10 0 Payments to legal representatives of deceased Receipts from Working Railways Account— beneficiaries under section 120 (c) of GovernSubsidy .. .. .. .. 170,000 0 0 ment Railways Act, 1926 .. .. 768 2 7 Increased allowances to widows and child- Compensation under Government Railways ren .. .. .. .. 12,740 2 7 Act, 1887 .. .. .. .. 37 1 3 Cost-of-living bonus to annuitants .. 4,992 8 0 Contributions transferred to other funds .. 108 13 5 Payment of subsidy from the Amalgamated Travelling-expenses of Board members .. 56 10 0 Society of Railway Servants on account of Public Trust commission.. .. .. 1,246 6 10 Matthew Joseph Mack .. .. .. 24 6 9 Mortgage-inspection fees .. .. .. 4 4 0 interest .. .. .. .. 49,913 7 9 Audit Office charges ... .. .. 50 0 0 Commission on collections of Government Salaries .. .. .. .. 1,413 3 2 Life Insurance premiums .. .. 11 5 3 Postages .. .. .. .. 104 16 1 Printing and stationery .. .. .. 79 4 11 Payments to annuitants by way of cost-of-living bonus .. .. .. .. 4,964 13 5 Investments .. .. .. .. 121,000 0 0 Insurance premium .. .. .. 1 19 0 Fines remitted and refunded .. .. 10 0 Balance of receipts over disbursements .. 24,995 5 7 £418,905 6 0 £418,905 6 0 J. G. COATES, Chairman of the Government Railways Superannuation Fund Board. H. Valentine, Chief Accountant, New Zealand Railways. I hereby certify that the|Statement of Receipts and Payments, Revenue Account, and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. G. F. C. Campbell, 17th June, 1927. Controller and Auditor-General.

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