GOVERNMENT RAILWAYS SUPERANNUATION FUND. REPORT OF BOARD.

Appendix to the Journals of the House of Representatives, 1942 Session I, D-05

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1942. 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 of the Government Railways Superannuation Fund for the year ended 31st March, 1942. The Revenue Account and statements in connection therewith, will be found appended. The expenditure for the year exceeded the income by £60,846 Os. 4d. Members' Contributions.—The income under this heading showed an increase of £7,473 12s. 4d. The number of contributors at 5, 7, 8, and 9 per cent, increased by 524, 12, 7, and 1, while contributors at 3, 4, 6, and 10 per cent, decreased by 119, 2, 18, and 2 respectively. The increase in amount of contributions is due to appointments to the permanent staff. Contingent Contributors—During the year 110 casual employees elected to contribute to the fund so that in the event of their subsequently being permanently appointed they would not be faced with a liability in respect of service prior to permanent appointment. The total number of employees so contributing at the end of the year under review was 542, and the amount standing to their credit £19,749 18s. lOd. , Subsidy.—The sum of £170,000 was paid into the fund by the Working Railways Department. The sum of £85 000 was also received from the Treasury in accordance with the provisions of section 7 of the Finance Act, 1941, leaving a deficit of £60,846. To meet the full commitments of the fund a subsidy of £146,000 would have been required. * ■>* r^ Interest The interest earned amounted to £62,034 ss. lid., a decrease of £1,546 los. od. as compared with the previous year. Table D, Statement of Investments, shows that the average rate of interest on securities held at the 31st March, 1942, was 4-23 per cent., and the average rate earned on the mean funds for the year 5-002 per cent., as against 4-234 per cent, and 5-04 per cent. respectivelv for the previous year. Life Allowances. —The expenditure on account of life allowances to members amounted to £506 386 Is. 4d. ; an increase of £22,709 13s. Bd. as compared with the figures for the previous year, the year ended 31st March, 1941, showed an increase under this heading of £23,680 4s. sd. Table A, Statement of Allowances, shows that the average amount of the 204 allowances granted during the year was £192 195., and the average amount of 110 allowances discontinued was £186 lis. lOd. Twenty-seven contributors have made elections in favour of dependants in accordance with the provisions of section 13 of the Finance Act (No. 2), 1940. .... Allowances to Widows and Children.—Until the passing of the Finance Act (No. 2), 1940, allowances to widows and children were paid only in cases where contributors died before retiring on a pension. Section 14 of this Act makes provision for payment of annuities to widows and children irrespective of whether contributors die before or after becoming entitled to a retiring-allowance. The expenditure on account of allowances to widows and children was £40,134 195.-£29,194 12s. sd. to widows and children of contributors who died before retiring and £10,940 6s. 7d. to widows and children of contributors who died after retirement. The sum of £17,446 16s. was received 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. Approval was received for the continuance of the cost-of-living bonus to annuitants m cases ot 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, 1942, there were 2,740 members, 1,080 widows, and 321 children, making a total of 4,141 persons actually on the fund, involving an annual liability of £538,141 lis. 3d. R. Semple, Chairman, Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1942.

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Section 102. Q .. o j.. ■,,« On Attainment of Retiring Age or for « ni „ T . ? n Section 113. Total Retiring and other Length of Service. Medically Unfit. -Widows. Children. Allowances. Number. Number. ... Number. Number. - 1 - " " ■ vy , i- Annual Amount. Annual Amount. Amount, ; ;.v. . —IB Annual Amount, , , . , ,, p , „ „ _ . . ber - at £31 P er Annum. I at £26 per Annum. , Annual Amount. ' Total. M. F. Total. 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 .. 2,003 1 2,004 418 .755 1 9 641 1 642 80,054 2 10 917 28,427 0 0 164 160 324 8 4»4 0 0 " 808 1079 3 887 535 660 4 7 Granted during year at retirement 153 .. 153 31,591 12 0 51 .. 51 7,770 9 0 42 1,302 0 0 26 17 43 1 lis 0 0 '230 59 'fsq ai'7S9 1 0 Granted dnring year after retire- .. .. 161 4,991 0 0 8 2 10 '260 0 0 8 163 171 0 0 tv ' r ° tal , V • " •• 2 ' 15 ? 1 2 ' 157 450 < 346 13 9 692 1 693 87,824 11 10 1,120 34,720 0 0 198 ~179~~377 9,802 0 0 3,046 13014 347 582 693 5 7 Discontinued during year .. 84 .. 84 17,070 17 1 26 .. 26 3,454 2 3 40 1,240 0 0 30 26 56 1,456 0 0 140 66 206 19 4 Existing at end of year .. 2,072 1 2,073 433,275 16 8 666 1 667 84,370 9 7 1,080 33,480 0 0 168 153 ~321 8,346 0 0 2,906 12354,141 559,472 6 3 Particulars of Retiring and other Allowances discontinued during the Year. How discontinued— • [ j j i . By death 84 .. 84 17,070 17 1 26 .. 26 3,454 2 3 22 682 0 0 .. | .. .. .. 110 "2 13? 91 206 19 4 By expiry .. .. .. .. .. .. .. j .. Ig 5g8 0 0 30 I 26 56 1,456 0 0 30 44 74 0 0 Total •• •• 84 .. 84 j 17,070 17 1 26 .. j 26 3,454 2 3 40 1,240 0 0 30 : 26 56 1,456 0 0 140 66 206 23,220 19 4 ; 1 « | I I I i Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1942. Total granted*t- • •• ■■ 3,985 2 3,987 681,950 16 2 1,166 2 1,168 134,210 3 3 1,612 47,372 0 0 1,064 1,036 2,1001 45,591 0 0 6 215 2652 8 867 1909 123 19 5 Total discontinued* .. .. 1,913 248,674 19 6 500 1 501 j 49,839 13 8 ; 532 j 13,892 0 0 896 : 883 1,779 0 0 3,309 114174,726 349,651 13 2 Total existing at 31st March, 1942.. 2,072 1 [2,073 433,275 16 8 666 1 667 84,370 9 7 1,080 133,480 0 0 168 153 ~321 8 346 0 0 9 906 1235 4 141 I 559 472 6 3 ,— J_ l_ : ! : 1 ! 1 1 ' / 1 [' ' Less amount receivable from the Working Railways Account ..... .. .. .. . .. ,. .. . j £538,141 11 * Total allowances granted and discontinued include 200 widows at £18 only, and 693 children at £13 only, exeunt prior to increase of allowances infSdbffiWira l0WaDce8 total " n ? £15 ' 620 lls - P cr annum ™ der 8ection u - Nuance Act, 1931. Of these allowances, 108 Were, as provided for by section 27, Statutes Amendment Act, 1936,

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Table B. —Statement of Contributors.

Table C. —Progress of the Fund. Balance forward. Allowances granted. £ s. d. £ s. d. 1903 to 1932 .. .. .. .. .. 606,011 1 5 1933.. .. .. •• •• 1,333,245 8 1 26,199 19 0 1934.. 1,240,830 15 8 12,970 9 0 1935.. .. •• 1,239,705 5 0 13,394 7 0 1936.. .. .. •• 1,246,984 7 11 14,637 7 0 1937.. .. .. •• •• 1,250,860 10 2 13,863 2 0 1937 (increased allowances, section 27, Statutes Amendment Act, 1936) .. .. 3,553 8 0 1938 1,272,724 7 5 24,622 14 0 1939 .. .. •• •• •• 1,282,354 0 2 36,872 9 0 1940.. .. •• •• •• 1,279,836 2 8 51,808 12 0 1941 .. .. •• •• 1,248,383 22 58,157 10 C 1942 .. .. .. 1,187,537 1 10 47,033 1 0 909,123 19 5 Less members died, &c. .. .. 349,651 13 2 Less liability of Working Railways Account 21,330 15 0 370,982 8 2 Annual liability at 31st March, 1942 .. .. £538,141 11 3

Table D. —Statement of Investments.

1942. 1941. Per Cent. Per Cent. Average rate of interest on securities held at 31st March 4-23 4-234 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest . ■ ■ 5 ■ 002 5 "04

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il o 9 ' in 7 P er I Der ricr Der Total Cent ' |CeS.|cent.|cent. Contributors at commencement of year 824 3 13,971 1,411 296 69 47 43 16,664 New contributors during year .. .. .. 1,280 97 41 9 2 1,429 Total .. .. .. 824 3 15,251 1,508 337 78 49 43 18,093 Contributors discontinued during year 119 2 756 115 29 2 1 2 1,026 Total contributors at 31st March, 1942 705 1 14,495 1,393 308 76 48 41 17,067

Funds invested at 31st March. 1942. 1941. £ s. d. £ s. d. At 3 per cent. .. .. • • • ■ 3,198 0 0 „ 3-375 „ 25,000 0 0 25,000 0 0 3-5 „ .. •• 165,989 11 0 167,873 13 9 " 4 .. .. 259,145 10 0 259,145 10 0 "4-125 „ .. ■■ 1,659 1 10 1,674 15 2 " 4-25 „ 265,103 19 2 273,147 19 11 " 4-4 „ 335 0 0 335 0 0 "4.5 „ .. .. .. 338,870 18 8 345,872 13 5. " 4-75 „ .. •• •• 2,902 8 6 2,637 1 0 "5 , .. .. .. 131,724 18 7 142,560 2 9 " 6 „ .. -• •• 1,584 16 8 1,642 11 8 Cash in hand .. •• 3,395 10 1 1,853 8 0 1,195,711 14 6 1,224,940 15 8

D.—s.

Statement of Accounts. Revenue Account for the Year ended 31st March, 1942.

Expenditure. £ s. d. Income. £ s. dp«+irm» allowances to members .. •• 506,386 1 4 Members contributions .. .. •• 218,40-.il 2 Allowances to widows and children .. .. 40,134 19 0 Members' contributions on account of casual Refund of'total contributions .. •• 68,056 5 9 service .. •• •• ■■ Q Refund, of contributions in excess of allowances • • drawn by deceased beneficiaries .. .. 1»489 J? Subsidies—wUt* •«»« SaSKSK! :: :: :: ™:S !! S War-damage insurance .. • ■ Increased allowances to annuitants as pro-Travelling-expenses of Board members .. 80 17 6 videdfor by Statutes Amendment Act, 1936 3,118 3 4 itr r 1 296 6 2 Working Railways, on account of increased Pub ic Trust commission .. .. l allowances to widows and children .. 17,446 16 0 Public Trust charges (legal cost) . . .. 50 0 0 New Zealand Railway Officers'lnstitute .. 13 15 5 Audit lee .. •• 2 New Zealand Railway Tradesmen's AssociaPosTaees " " •• •• '497 16 0 tion 18 16 11 : 1,5,32 "ssrtjsscftr. Amalgamated Society of Railway Servants 8 7 7 Interest — £ s - d. Investments .. .. 52,13! Ull Treasury Department .. 9,902 14 0 J 62,034 5 11 Commission on Government Life Insurance collections .. .. • • • ■ 52 6 10 Balance carried down, being excess of expenditure over income for the year .. .. 60,846 0 4 620,978 14 10 620,978 14 10 £ s. d. ® SBalance brought down 60,846 0 4 Accumulated funds brought forward on Ist 2 Balance, accumulated funds as at 31st March .. 1,187,537 110 April .. .. •• •• '' ' £1,248,383 22 £1,248,383 22 Balance-sheet as at 31st March, 1942. Liabilities. £ s - d. Assets. Accumulated funds as per Revenue Account .. 1,187,537 110 Investment Account— s. • Casual employees' contingent contributions .. 19,749 18 10 Investments .. ..1,192,316 4 5 Retiring and other allowances due (not paid)— Cash in hand .. .. ] 595 711 14 (j Members • • • • • • 424 1 i 1 Widows and children .. .. 449 010 Current AccountRefund of contributions authorized (not paid) 970 19 3 Cash in hand .. '' " 176 2 1 Refund of contributions in excess of allowances Contributions and fines m transit .. drawn by beneficiaries (not paid) .. ... 1 1 Contributions due by- q £ B - d - Transfers to other funds authorized (not paid) 23 5 1 Army Departmen .. '' Interest paid in advance 600 14 8 Navy Department 9,0010 Public Trustee .. 513 7 0 Air Force Department.. 2,792 1 0 g Reserve for bad and doubtful debts .. 4,000 0 0 r o qi'i on Rebates of contributions (National Expenditure Contributions outstanding . .. .. 6 Adjustment Act, 1932) .. .. 56.4»| 15 0 OjUWj. ■ Vy — »»- < IS ,„ „ , Sundry creditors « » » W oSsKZye- ' On account of increased allowances to annuitants as provided for by Statutes Amendment Act, 1936 .. . ■ 519 12 6 On account of cost-of-living bonus .. 41 0 10 On account of additional allowances to widows and children . . .. • • • • 3,034 16 3 Interest due not paid .. •• 7,646 14 3 Interest accrued but not due .. .. 12,074 10 5 Insurance premiums .. •• •• 19 11 War damage insurance .. .. ■ • 304 6 6 £1,250,996 13 8 £1,250,996 13 8 R. Semple, W Bishop Chairman of the Government Railways Chief Accountant, New Zealand Railways. Superannuation Fund Board. 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.-—Cyril G. Collins, Controller and Auditor-General. Approximate Cost of Paper—Preparation, not given; printing (955 copies), £10 109.

By Authority: E. V. Paul, Government Printer, Wellington.—l 942.

Price 3d.]

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