EDUCATION: TEACHERS' SUPERANNUATION FUND.

Appendix to the Journals of the House of Representatives, 1938 Session I, E-08

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1938. NEW ZEALAND.

EDUCATION: TEACHERS' SUPERANNUATION FUND.

Presented to both Houses of,the General Assembly by Command of His Excellency.

No. I.—THIRTY-SECOND ANNUAL REPORT OF THE TEACHERS' SUPERANNUATION BOARD. Foe the Yeae ended 31st January, 1938. The Hon. the Minister of Education. Sie, —- Wellington, 9th May, 1938. The Board has to submit the following report for the year ended the 31st January, 1938 : —- The Board. —The usual quarterly meetings of the Board were held in February, May, August, and November. The following figures show the transactions, &c., of the fund for the year ended 31st January, 1938, as compared with those for previous year:— 1938. 1937. Contributors on roll at 31st January .. .. .. 8,357 8,058 Increase from previous year .. .. .. .. 299 90* Retiring and other allowances — Annual rate granted during year .. .. .. £12,709 £17,591 Total annual rate at 31st January .. .. .. £325,130 £322,557 Number granted during year — On retirement .. .. .. .. .. 68 88 To widows .... .. .. .. .. 21 26 To children .. .. .. .. .. 5 8 Number discontinued during year — By death .. .. .. .. .. 65 69 By other causes .. .. .. .. .. 14 11 Number current at 31st January— Retired members .. .. .. .. 1,674 1,660 Widows and children .. .. .. .. 379 378 Income for year — £ £ Contributions .. .. .. .. .. 139,835 132,631 Government subsidy— Section 112 of Act .. .. .. .. 43,000 43,000 Section 114 of Act .. .. .. .. 5,277 4,350 Section 23, Finance Act, 1936 s .. .. .. .. 115,000 Special on account of interest reductions .. .. 6,547 9,450 Total Government subsidy .. .. .. |54,824 171,800 Interest .. .. .. .. .. .. 42,759 44,187 Profit on realization of investments, &c. .. .. .. 34 Total income .. .. .. .. £237,418 £348,652 Expenditure — Retiring and other allowances .. .. .. 328,007 323,976 Contributions refunded or transferred .. .. 36,342 31,481 Administration expenses, &c. .. .. .. 3,209 3,306 Total expenditure .. .. .. .. £367,558 £358,763 * Decrease. f Since the closing of the Accounts the Government has given a further special subsidy of £123,000 under authority of section 9, Finance Act (No. 2), 1937,

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1938. 1937. £ £ Net loss for year .. .. .. .. .. 130,140 10,111 Balance at credit of Fund .. .. .. .. 834,465 964,605 Funds invested at 31st January — At 3 per cent. .. .. .. .. .. 5,000 5,000 At 3| per cent. .. .. .. .. .. 5,000 8,175 At 3| per cent. .. .. .. .. .. 65,676 51,681 At 3f per cent. .. .. .. .. . • 1,200 1,200 At 4 per cent. .. .. .. •• •• 83,291 24,650 At 4| per cent. .. .. .. .. .. 383,759 280,239 At 4f per cent. .. .. -• 1,800 1,800 At per cent. .. .. .. •• 198,965 136,730 At 4f per cent. .. .. .. . • • • 300 100 At 4f per cent. . . . . . . . . . ■ . • 1,100 At 4f per cent. . . .. . • • . . • 100 300 At 5 per cent. .. .. .. .. .. .. 60,715 At 5J per cent. .. .. . . .. . ■ 2,250 2,250 At 5J per cent. .. .. .. .. .. 2,400 2,400 At 6 per cent. .. .. .. .. .. 269 1,750 At 6 per cent- J'(subject to reduction under the National J"211,432 376,392 At 6| per cent. \Expenditure Adjustment Act, 1932) •• \ • • 197 Total .. .. .. .. .. £961,442 £954,679 f unreduced rate .. 4-608 4-972 Average rate of interest (per cent.) Rafter reduction as shown above .. 4-378 4-577 Unclaimed contributions held at 31st January .. .. £1,410 £855 Cost-of-living Bonus.—The payment of this bonus has been continued in necessitous cases. For the Teachers' Superannuation Board, C. E. Crawford, Secretary.

No. 2.—STATEMENTS IN ADDITION TO THOSE PRESCRIBED BY THE ACT AND REGULATIONS. A. Number of Contributors on the 31st January, 1938, arranged according to Percentage of Contribution.

B. Total Number of Contributors who have joined and left the Fund since its Establishment (1st January, 1906, to 31st January, 1938).

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5 per Cent. 6 per Cent. 7 per Cent. 8 per Cent. 9 per Cent. *q^ 1 Totals. M. F. M. F. M. F. M. P. M. F. M. F. M. F. Total. Number at 31st January, 1937 3,195 3,801 254 267 124 173 62 80 40 28 28 6 3,703 4,355 8,058 New contributors entered during 231 415 20 30 11 19 6 16 3 3 1 2 272 485 757 year i Transfers from other funds . . 2 1| 2 1 3 3,428 4,217 274 297 135 192 68 96 43 31 29 8 3,977 4,841 8,818 Number left during year . . 58 339 13] 14j 5 10 .. 9 1 4 6 2 83 378 462 Number at 31st January, 1938 3,370 3,878 261 j 283 130 182 68 87] 42 27 23 6 3,894 4,463 8,357 I [ L

Number. . . _ Annual ■ Annual Rate Salary. n , ?/ .. M. F. Total. Contribution. £ £ Total entered (including net increases in salary 6,884 13,781 20,665 5,266,643 304,141 and contributions) Total discontinued .. .. ., .. 2,990 9,318 12,308 2,662,341 166,501 Total existing at 31st January, 1938 .. 3,894 4,463 8,357 2,604,302 137,640 _ I

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C. Table showing Progress of Fund since its Inception (1st January, 1906).

No. 3. —ACCOUNTS AND STATEMENTS AS PRESCRIBED BY REGULATIONS IN TERMS OE SECTION 110 OF THE PUBLIC SERVICE SUPERANNUATION ACT, 1927. (1) (A) REVENUE ACCOUNT for the Year ended 31st January, 1938. £ s. d. £ s. d. Balance 31st January, 1937 .. .. .. 964,604 16 5 Retiring and other allowances .. .. 328,007 9 4 Contributions of members .. .. .. 139,248 18 7 Contributions refunded — £ s. d. Contributions transferred from other funds .. 342 6 2 On voluntary retirement •• 28,252 8 4 Additional contribution from Fiji Government in On death of members .. 6,97117 11 respect to teachers in Fiji schools .. .. 244 7 2 On lapse of membership .. 868 13 11 Government subsidy— £ s. d. 36,093 0 2 Under the Act, section 112 .. 43,000 0 0 Rebate of contributions to annuitants on retire - Under the Act, section 114 .. 5,277 9 4 ment under National Expenditure Adjustment On account of reduction of Act, 1932, section 9 (2) . . .. .. 219 12 1 interest during year ended Contributions transferred to other funds .. 29 3 11 31st March, 1937, under Administration expenses— £ s. d. National Expenditure Ad- Commission, G.P.O. .. 632 12 0 justment Act, 1932 .. 6,547 0 0 Commission, Public Trustee .. 1,302 12 8 54,824 9 4 Clerical assistance .. .. 900 0 0 Interest • Postage and telegrams .. 100 0 0 On investments .. .. 42,630 0 6 Office expenses .. .. 120 18 10 On contributions in arrears .. 433 12 8 Travelling-expenses of Board members .. .. 61 19 6 43,063 13 2 Medical fees .. .. 40 19 0 Less investments written Audit fees .. .. 50 0 0 down (proportion of 3,209 2 0 premium on purchase Balance, 31st January, 1938 .. .. 834,465 9 6 of investments) .. 304 13 10 42,758 19 4 £1,202,023 17 0 £1,202,023 17 0 COST-OF-LIVING BONUS ACCOUNT FOR THE YEAR ENDED 31st JANUARY, 1938. £ s. d. £ s. d. Refund from Consolidated Fund .. .. 1,568 8 9 Balance due from Consolidated Fund, January, 1937 266 13 1 Balance due from Consolidated Fund, 31st January, Payment of bonus .. .. . . .. 1,562 3 6 1938 .. .. .. .• •• 260 7 10 £1,828 16 7 £1,828 16 7

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rrt" TD>» T3 >. T3 >» T3 >. >» ® •£* ® M ® H otH a>fH Of- « £ fH ® rg c3 -d eg T3«2 S . 2 . -22. lit :li i IM pi srf 1$ M l-i IT lj- | ft gg gg jl M H i Total number of contributors 2,182 6,858 8,377 9,616 9,355 8,058 8,357 Total amount of contributions £32,320 £101,594 £146,804 £140,832 £113,549 £132,398 £139,591 £2,819,983 Interest received .. .. £864 £48,725 £73,420 £70,144 £61,117 £44,187 £42,759 £1,154,634 Subsidy from Government .. £5,000 £63,833 £71,428 £71,831 £47,020 £171,800 £54,824 £1,663,293 Subsidy from Fiji Government .. £38 £214 £262 £215 £233 £244 £3,102 Number of allowances payable 84 1,078 1,273 1,530 1,842 2,038 2,053 Total amount paid on account of £3,147 £112,861 £184,707 £222,423 £283,738 £323,976 £328,007 £4,164,456 retiring and other allowances Total amount of contributions £260 £19,189 £26,590 £30,377 £33,478 £31,481 £36,342 £564,805 refunded and transferred Accumulated fund .. .. £34,734 £858,662 £1,083,155 £1,198,711 £1,111,642 £964,605 £834,465

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(B) BALANCE-SHEET as at 31st January, 1938. Liabilities. £ s. d. Assets. Fund as per Revenue Account .. .. 834,465 9 6 Amount held by Public Trustee— £ s. d. £ s. d. Retiring and other allowances due and unpaid .. 2,523 12 11 Invested .. .. .. 961,442 7 7 Refund of contributions due and unpaid .. 512 5 6 Uninvested .. .. 2,971 7 3 Administration expenses unpaid— —-— 964,413 14 10 Commission, Post and Tele- £ s. d. Premium paid on purchase of graph Department .. 206 14 6 Investments .. .. 3,439 22 Clerical assistance .. .. 750 0 0 Less amount written off .. 304 13 10 Postage and telegrams .. 83 6 8 3,134 8 4 Office expenses, printing, and Amounts paid to protect securities .. 143 13 4 stationery .. .. 15 0 4 Contributions of members— Audit fee .. .. .. 41 13 4 In transit .. .. .. 2,153 8 5 Medical fees .. .. 11 11 0 Due and outstanding .. 3,793 19 9 1,108 5 10 5,947 8 2 Unclaimed contributions .. .. 1,409 13 4 Funds in transit (for refund of Amounts paid into fund in error .. 87 9 10 contributions due London in Government subsidy—Statutory February) .. .. .. 123 7 8 grant received in advance for Interest on investments— 1938 .. .. .. 39,416 13 4 Due and outstanding .. 10,320 11 5 Less additional subsidy under sec- Accrued, but not due .. 11,192 13 0 tion 114 of Act not yet received 406 1 9 21,513 4 5 Less additional subsidy under sec- Interest on arrears of contribution 114, receivable in respect tions due and outstanding to allowances outstanding at (contributors) .. .. .. 269 13 3 31st January, 1938 .. .. 173 4 3 Due by Consolidated Fund for — 38,837 7 4 Cost-of-living Bonus .. .. 260 7 10 Rent received from securities leased (held for rates and expenses) .. .. .. .. 299 18 9 Reserve — For commission payable to Public Trustee in respect to interest due or accrued .. 713 0 0 For commission to Post and Telegraph Department in respect to vouchers issued but unpaid .. .. .. 40 13 0 For cost of actuarial examination .. .. .. 20 0 0 773 13 0 Reserve for loss on investments — Balance at 31st January, 1937 3,049 910 Less interest written off .. 173 7 6 Less capital written off .. 374 10 11 2,501 11 5 Account with Post Office overdrawn at 31st January, 1938 .. 92,119 6 9 Vouchers issued but unpaid .. 21,167 3 8 — 113,286 10 5 £995,805 17 10 £995,805 17 10 Notes.—Since the closing of the accounts for the year the Government has given a further subsidy on account of the loss suffered by the reduction of interest under the provisions of the National Expenditure Adjustment Act, 1932, during the year to 31st March, 1938. The amount for the period to 31st January, 1938, not included in the year's accounts, is £5,270. Since closing the Accounts for the year a further Government subsidy of £123,000 has been paid to the Fund. The liability under section 9 (2) of the National Expenditure Adjustment Act, 1932, as amended by section 25 of the Finance Act (No. 2), 1932-33, in respect to the rebate to those contributors who did not elect to continue to contribute on the higher rate of salary before the reductions in 1932 has not been taken into account in the foregoing statement. The benefit (which is payable upon retirement) will amount in the aggregate, to approximately £30,000 ; but the additional liability is only approximately £5,000, as the remaining £25,000 would, in any case, be refunded as contributions in the ordinary way upon retirement before full age or service. C. E. Crawford, A.R.A.N.Z., Education Department, Secretary, Teachers' Superannuation Board. Wellington, 9th May, 1938. I hereby certify that the 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, subject to the departmental notes enfaced thereon, and to the following comment: There is no statutory authority for the Board to borrow moneys by way of overdraft from the Post Office Account. J. H. Fowler, Controller and Audi tor-General.

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(2) STATEMENT of CONTRIBUTORS, showing Annual Rates of Salaries and Contributions as at the 31st January, 1938.

(3) PARTICULARS of CONTRIBUTIONS discontinued and Allowances granted and Refunds of Contributions made during the Year ended 31st January, 1938.

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Number. ___ Annual Rate of Annual Rate of M F Total Salary. Contributions. £ £ Contributors at 31st January, 1937 .. 3,703 4,355 8,058 2,540,745 134,434 New contributors entered during the year 272 485 757 64,327 3,667 ended 31st January, 1938 Transfers from other funds during the year 2 1 3 880 44 Net increase in salaries and contributions .. .. .. .119,772 6,100 during the year Totals .. .. .. 3,977 4,841 8,818 2,725,724 144,245 Contributions discontinued during the 83 378 461 121,422 6,605 year ended 31st January, 1938, by resignations, &c. Totals at 31st January, 1938 .. 3,894 4,463 8,357 2,604,302 137,640 ■ S I

Number of j Annual Rate at Date of Contributors. j Withdrawal. -Benefits. How discontinued. T~T M P "3 ! SalnT-i7 I Contrib u- i Allowances: [ < - ,tll ® r * a yM. F. - | Salary. ; tions> , Annual Rate _ | ments (nonH j | | | recurring). j r ~— By death before allowance entered upon — £ s. d. £ s. d. (а) Contributions paid to 3 9 12 4,645 250 .. 4,304 11 11 personal representatives (б) Leaving widow or child 5 .. .5 2,385 127 161 0 0 2,110 6 11 By voluntary retirement .. 40 315 355 j 82,355 4,198 .. 28,252 8 4 By lapsed membership .. 5 10 15 3,459 204 .. 869 16 5 By transfer to other funds .. 5 2 7 616 43 .. 29 3 11 By allowances granted on retirement— (a) Ordinary .. .. 18 32 50 21,826 1,415 9,659 11 0 ") (bj Medically unfit .. 4 7 11 3,805 221 822 2 219 12 1 (c) Extended provisions .. 3 4 7 2,505 156 1,446 6 0 J By death of annuitants .. .. .. 620 0 0 556 19 1 83 379 462 121,596 6,614 12,708 19 0 36,342 18 8 Deduct (previously shown in..11 174 9 .. 126 lapsed now reinstated) Totals.. .. 83 378 461 121,422 6,605 12,708 19 0 36,341 16 2 -- 1. 1

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(4) STATEMENT of RETIRING-ALLOWANCES (including Allowances to Widows and Children) for the Year ended 31st January, 1938.

Approximate Cost of Paper.—Preparation, not given; printing (860 copies), £10 10s.

By Authority: E. V. Paul, Government Printer, Wellington.— 1938. Price 6cV\

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(1) (2) ® Details of Column (2). •• Retiring-allowances. Allowances to Total Allowances. ~ , ■ j : ' ,, ,. ,, . . Extended Provisions and .. TT D Ordinary (Age or Service). ge(J u Finance Act 1931 Medically Unfit. Widows. Children, rarticulars. ' ' Number. Number. Number. Number. 53 : Number. | 3 Annual Rate. ; Annual Rate. Annual Rate. - — Annual Rate. "g Annual Rate. i Annual Rate. M. F. ' £ M. F. M. F. M. ! F. ,g M. F. ! £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Allowances as at 31st January, 1937 .. 6111,427 2,038322,557 7 0 393 913261,513 2 0 76 6221,883 4 0 103 11327,830 2 0 299 1 9,276 19 0 39 40 2,054 0 0 Allowances granted during the year at 28 46 74 12,088 19 0 18 32 9,659 11 0 3 4 1,446 6 0 4 7 822 20 1 31 00 3 2 130 0 0 retirement or decease of contributors Allowances granted during the year .. 20 20 620 0 0.. .. .. .... .. .... .. 20 620 0 0 .... to widows and children of deceased annuitants .. i .:. ...: ! Totals .. ... .. 6391,4932,132335,266 6 0 411 945271,172 13 0 79 6623,329 10 0 107 12028,652 4 0 320| 9,927 19 0 42 42 2,184 0 0 Allowances discontinued during the year 34 45 79 10,136 14 0 20 23 8,075 0 0 3 2 669 1 0 4 2 682 13 0 12 372 0 0 7 6 338 0 0 Allowances existing at end of year 6051,4482,053325,129 12 0 391 922263,097 13 0 76 6422,660 9 0 103 118 27,969 11 0 308 9,555 19 0 35 36 1,846 0 0 Particulars of Allowances discontinued during the Year. . _ , , . , . . • How discontinued — By death .. . . .. 27 38 65 9,797 14 0 20 23 8,075 0 0 3 2 669 1 0 4 2 682 13 0 11 341 0 0 .... By expiry .. 7 7 14 339 0 0 .. .. .. .... .. .. .. .. 1 31 0 0 7 6 338 0 0 Totals .. 34 45 79 10,136 14 0 20 23 8,075 0 0 3 2 669 1 0 4 2 682 13 0 j 12j 372 0 0 7 6 338 0 0 Progress of Allowances since Establishment of Fund to the 31st January, 1938. Total granted .. 1,2642,0353,299451,346 8 0 7101,136 346,341 13 0 148 7034,637 12 0 213 16348,213 0 0 48414,302 3 0 193 182 7 852 0 0 Total discontinued .. .. .. 659 5871,246126,216 16 0 319 214 83,244 0 0 72 611,977 3 0 110 4520,243 9 0 176 4,746 4 0 158 146 6 006 0 0 j J ' Total existing .. .. 6051,4482,053 325,129 12 0 391 922 263,097 13 0 76 6422,660 9 0 103 11827,969 11 0 308 9,555 19 0 35 36~ 1.846 0 0