GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Appendix to the Journals of the House of Representatives, 1943 Session I, D-05

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1943 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, 1943. The Revenue Account, Balance-sheet, and statements in connection therewith, will be found appended. The expenditure for the year exceeded the income by £23,492. Members' Contributions. —The income under this heading showed an increase of £3,959. The number of contributors at 5 per cent, increased by 227, while contributors at 3, 6, 7, 8, 9, and 10 per cent, decreased by 54, 41, 6, 3, 2, and 2 respectively. The increase in amount of contributions is due to appointments to the permanent staff. Contingent Contributors.—During the year 69 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 546, and the amount standing to their credit £21,947. Subsidy. —The sum of £170,000 was paid into the fund by the Working Railways Department. The sum of £90,440 was also received from the Treasury in accordance with the provisions of section 7 of the Finance Act, 1941, leaving a deficit of £23,492. To meet the full commitments of the fund a subsidy of £114,000 would have been required. Interest. —The interest earned amounted to £59,464, a decrease of £2,570 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, 1943, was 4-216 per cent., and the average rate earned on the mean funds for the year 4'945 per cent., as against 4-23 per cent, and 5-002 per cent, respectively for the previous year. Life Allowances - The expenditure on account of life allowances to members amounted to £513,798, an increase of £7,412 as compared with the figures for the previous year, the year ended 31st March, 1942, showed an increase under this heading of £22,709 13s. Bd. Table A, Statement of Allowances, shows that the average amount of the 131 allowances granted during the year was £3 69 3s. 9d., and the average amount of 148 allowances discontinued was £187 17s. Id. Twenty-nine 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 whether contributors die before or after becoming entitled to a retiring-allowance. The expenditure on account of allowances to widows and children was £43,213 —£29,214 to widows and children of contributors who died before retiring and £13,999 to widows and children of contributors who died after retirement. The sum of £18,688 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 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, 1943, there were 2,723 members, 1,170 widows, and 302 children, making a total of 4,195 persons actually on the fund, involving an annual liability of £533,960 Bs. R. Semple, Chairman, Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1943

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Section 102. Section 111 Section 113. Section 113. Total Retiring and other On Attainment of Retiring Age or for Medically Unfit Widows. Children. Allowances. Length of Service. " J Number. Number. ' Number. Number. ... . . . , Num- Annual Amount, Annual Amount, ! Annual Amount Annual Amount. Annual Amount. ber at £31 per Annum . , rp at £26 per Annum. I Annua, aiuouui,. M. F. Total. M. F. Total. M. F. Total. M. F. ! Total. Retiring and other allowances — £ s. d. £ s. d. £ s. d. £ s. d. £ _ s * Existing at beginning 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 Granted during year at retirement 79 .. 79 14,822 12 0 52 .. 52 7,340 12 0 30 930 0 0 19 15 34 884 0 0 150 45 195 23,977 4 0 Granted during year after retire- .. .. •• •• .... .. .. 105 3,255 0 0 6 3 9 234 0 0 6 108 114 3, 89 0 0 mei1 Total .. .. 2,151 1 2,152 448,098 8 8 718 1 719 91,711 1 7 1,215 37,665 0 0 193 171 364 9,464 0 0 3,062 13884,450 586,938 10 3 Discontinued during year .. 115 .. 115 23,181 9 3 33 .. 33 4,620 16 0 45 1,395 0 0 29 33 62 1,612 0 0 177 78 255 30,809 5 3 Existing at end of year .. 2,036 1 2,037 424,916 19 5 685 1 686 87,090 5 7 1,170 36,270 0 0 164 138 302 7,852 0 0 2,885 13104,195 556,129 5 0 ; : Particulars of Retiring and other Allowances discontinued during the Year How discontinued — j j ' , „ Bv death .. .. 115 1 .. 115 23,181 9 3 32 .. 32 4,565 12 0 32 I 992 0 0 .. 14/1 32 179 28,739 1 3 By expiry .. .. .. | .. .. 1 .. 1 55 4 0 13 403 0 0 29 33 62 1,612 0 0 30 46 76 2,070 4 0 Total .. .. 115 .. 115 23,181 9 3 33 j .. 33 4,620 16 0 45 1,395 0 0 29 33 62 j 1,612 0 0 177 78 255 30,809 5 3 - - — - Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1943 Total granted*+ .. .. 4 064 2 4.066 696,773 8 2 1,218 2 1,220141,550 15 3 1,747 51,557 0 0 111,089 1,054 2,143: 46,709 0 0 6,371 i28059,176 936,590 3 5 Total discontinued* .. .. 2',028 1 271,856 8 9 533 1 534 54,460 9 8 577 15,287 0 0 925 9161,841; 38,857 0 0 3,486 14954,981 380,460 18 5 Total existing at 31st March, 1943.. 2,036 1 2,037 424,916 19' 5 ! 685 1 686 87,090 5 7 1,170 36,270 0 0 164 138 302. 7,852 0 0 2,885 1310 4,195 ' 556,129 5 0 Less amount receivable from the Working Railways Account .. .. .. •• •• •• ■■ •• •• •• •• 22,168 17 0 £533,960 8 0 I * Total allowances granted and discontinued include 200 widows at £18 only, and 693 children at £13 only, exeunt prior 'to t increase of allowances. t These figures include 134 allowances totalling £15,620 lis. per annum granted under section 14, Finance Act, 1931. Of these allowances, 108 were, as provided for by section 27, Statutes Amendment Act, 1936, increased by £3,553 8s.

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Table B.—Statement of Contributors

Table C. —Pbogress of the Fund Balance forward. Allowances granted. £ s. d. £ 8. d. 1903 to 1933 .. .. •• •• 632,211 0 5 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 0 1942 .. .. •• •• 1,187,537 1 10 47,033 1 0 1943 .. .. .. .. ■■ J,164,045 0 0 27,466 4 0 936,590 3 5 Less members died, &c. .. .. 380,460 18 5 Less liability of Working Railways Account 22,168 17 0 402,629 15 5 Annual liability at 31st March, 1943 £533,960 8 0

Table D. —Statement of Investments

1943. 1942. Per Cent. Per Cent. Average rate of interest on securities held at 31st March 4-216 4-23 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest .< .. 4-945 5-002

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3 per 4 per 5 per 6 per 7 per Tota] . Cent. Cent. Cent. Cent. Cent, ( £ nt . . Cent. Contributors at commencement of year 705 1 14,495 1,393 308 76 48 41 17,067 New contributors during year .. .. . • 595 9 6 1 611 Total .. .. .. 705 1 15,090 1,402 314 77 48 41 17,678 Contributors discontinued during year 54 .. 368 50 12 4 2 2 492 Total contributors at 31st March, 1943 651 1 14,722 1,352 302 73 46 39 17,186

Funds invested at 31st March. 1943. 1942. £ s. d. £ 8. d. At 3-375 per cent. .. .. • • 25,000 0 0 25,000 0 0 3.5 , .. .. .. 164,105 19 3 165,989 11 0 "4 .. .. .. 259,145 10 0 259,145 10 0 "4-125 „ 1,659 1 10 4-25 .. .. .. 290,548 18 9 265,103 19 2 "4.4 . .. .. 335 0 0 335 0 0 "4.5 , .. .. .. 301,210 17 6 338,870 18 8 " 4-75 ' . 2,696 2 4 2,902 8 6 "5 .. .. 121,24113 6 131,724 18 7 " 6 „ .. •• • • 1,805 11 8 1,584 16 8 Cash in hand .. ■■ •• 2,855 0 0 3,395 10 1 1,168,944 13 0 1,195,711 14 6

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Statement op Accounts Revenue Account for the Year ended 31st March, 1943 Expenditure £ Incoirt'G Retiring-allowances to members .. . • •• 513,798 Members contributions .. • • • • •• 2^5,1il Allowances to widows and children .. .. 43,213 Members' contributions on account of casual service 751 Refund of total contributions .. .. • • 29,752 Fines Refund of contributions in excess of allowances drawn Subsidies— 0 „ . by deceased beneficiaries .. .. •• 780 Consolidated Fund .. ■■ i7n'nno Transfers to other funds .. .. . ■ •• 596 Working Railways .. • • War damage insurance . . 296 Increased allowances to annuitants as provided for Earthquake insurance .. .. ■■ •• I 8 by Statutes Amendment Act, 19c • • Administration charges- Working Railways on account of increased allow-Travelling-expenses of Board members .. .. 55 ances to widows and children .. •• > Public Trust commission 1,178 New Zealand Rai way Officers Institute .. 13 Audit fee ..... 50 New Zealand Railway Tradesmen s Association . i' Salaries !! !! •! !! .. 1,499 New Zealand Engine-drivers, Firemen, and Cleaners' Postages • • • • 392 Association .. . • • • • • Printing and stationery" 156 Amalgamated Society of Railway Servants Interest — x Investments .. • • ■ • .. 49,788 Treasury Department .. .. •• 9,676 59,464 Commission on Government Life Insurance collections 53 Balance carried down, being excess of expenditure over income for the year .. . • • • • • 23,492 £591,783 £59!,783 i £ Balance brought down .. .. ■ • •• 23,4-92 Accumulated funds brought forward on Ist April .. 1,187,537 Balance, accumulated funds as at 31st March .. 1,164,045 £1,187,537 £1,187,537 Balance-sheet as at 31st March, 1943 Liabilities £ Assets Accumulated funds as per Revenue Account .. 1,164,045 Investment Account i Casual employees'contingent contributions .. 21,947 Investments .. .. •• . > Retiring and other allowances due (not paid) — Cash in hand . . .. • • jgg Members . . .. • • ■ ■ • • 556 Widows and children .. •• •• 665 Current Account Refund of contributions authorized (not paid) .. 1,401 Cash in hand .. " " ' fisq Refund of contributions in excess of allowances drawn Contributions and fines in transit .. ■ . by beneficiaries (not paid) 183 Contributions due by Army, Navy, and Air Force Transfers to other funds authorized (not paid) .. 42 Departments • • • • • • * * " ' i'a22 inf«r.« a + miH in dvflTipfl .. .. 150 Contributions outstanding .. •• •• ' Public Trustee !! .. .. 569 Contributions due by members in respect of casual Reserve for bad and doubtful debts .. . • 4,000 service Rebates of contributions (National Expenditure Working Railways — Adjustment Act 1932) ■■ 35,276 On account of increased allowances to annuitants as Sutdiy Sofs : :: :: .. 214 providedforby Statutes Amendment Act, 1936.. 253 On account of cost-of-living bonus .. • • On account of additional allowances to widows and children Interest due not paid .. . • • • ■ • Ti 097 Interest accrued but not due .. •• •• « Insurance premiums £1,229,048 £1,229,048 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.— Cybil G. Collins, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given ; printing (961 copies), £0 10s.

By Authority: E. V. Paul, Government Printer, Wellington. 1943.

Price 3d.

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