GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Appendix to the Journals of the House of Representatives, 1945 Session I, D-05

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1945 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 tlje Government Railways Superannuation Fund for the year ended 31st March, 1945. The Revenue Account, Balance-sheet, and statements in connection therewith, will be found appended. The expenditure for the year exceeded the income by £20,610. Members' Contributions.—The income under this heading showed an increase of £34,938. The number of contributors at 5, 6, 7, 8, and 9 per cent, increased by 180, 152, 132, 92, and 37 respectively, while contributors at 3 and 10 per cent, decreased by 143 and 2 respectively. The increase in amount of contributions is due to appointments to the permanent staff. Contingent Contributors.—During the year 89 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 286, and the amount standing to their credit £20,332. Subsidy.—The sum of £170,000 was paid into the fund by the Working Railways Department, and the sum of £110,900 was received from the Treasury in accordance with the provisions of section 3 of the Finance Act, 1942, leaving a deficit of £20,610. Interest.—The interest earned amounted to £57,827, a decrease of £825 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, 1945, was 4-133 per cent., and the average rate earned on the mean funds for the year 5-043 per cent., as against 4-108 per cent, and 4-975 per cent, respectively for the previous year. Life Allowances. —The expenditure on account of life allowances to members amounted to £562,747. The average of the 296 allowances granted during the year was £222 lis. 6d., and the average of the 144 allowances discontinued was £176 ss. 9d. Thirty-six 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.—Previous to 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 £48,995 —£29,608 to widows and children of contributors who died before retiring and £19,387 to widows and children of contributors who died after retirement. The sum of £21,118 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. Cost of Living Bonus. —A cost-of-living bonus was granted to superannuitants payable from Ist October, 1943, at a maximum rate of £26 per annum, reducible £1 for £1 for income in excess of £335 per annum. The sum of £47,392, which included arrears from Ist October, 1943, was paid during the year. The whole cost of this bonus is borne by the Working Railways Account. At the 31st March, 1945, there were 3,000 members, 1,352 widows, and 307 children, making a total of 4,659 persons actually on the fund, involving an annual liability of £612,184. R. Semple, Chairman, Government Railways Superannuation Fund Board.

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Table A.—Statement of Allowances for the Year ended 31st March, 1945

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On Attainmenfof 1 Retiring Age or for w2?£S!l Sectkm 113. Section 113. Total Retiring and other Length of Service. Medically Unfit. Widows. Children. Allowances. Number. Number. Number. Number. Annual Amount. Annua, Amount. j XSt j Annua! Amount. M. F. Total. M. F. Total. M. F. Total. M. j F. Total. Betiring and other allowances — £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. Existing at beginning of year .. 2,126 .. 2,126 453,603 14 5 721 1 722 92,512 5 7 1,279 39,649 0 0 169 142 311 8,086 0 0 3,016 14224,438 593,851 0 0 Granted during year at retirement 184 .. 184 48,718 3 0 112 .. 112 17,164 13 0 29 899 0 0 19 25 44 1,144 0 0 315 54 369 67,925 16 0 Granted during year after retire- .. .. .. .. .. 97 3,007 0 0 1 5 6 156 0 0 1 102 103 3,163 0 0 ment Total .. .. 2,310 .. 2,310 502,321 17 5 833 1 834 109,676 18 7 1,405 43,555 0 0 189 172 361 9,386 0 0 3,332 15784,910 664,939 16 0 Discontinued during year .. 108 .. 108 20,026 11 2 36 .. 36 5,358 17 0 53 1,643 0 0 25 29 54 1,404 0 0 169 82 251 28,432 8 2 Existing at end of year .. 2,202 .. 2,202 482,295 6 3 797 1 798 104,318 1 7 1,352 41,912 0 0 164 143 307 7,982 0 0 3,163 14964,659 j 636,507 7 10 Particulars of Retiring and other Allowances discontinued during the Year How discontinued — ! By death .. .. .. 108 .. 108 20,026 11 2 35 .. 35 5,195 16 0 34 1,054 0 0 .. 143 34 1 177 26,276 7 2 By expiry .. .. .. .. .. .. .. 1 .. 1 163 1 0 19 ; 589 0 0 j 25 29 54 1,404 0 0 26 48 j 74 2,156 1 0 Total .. .. 108 .. 108 20,026 11 2 : 36 .. 36 5,358 17 0 53 1,643 0 0 25 29 54 1,404 0 0 169 82 251 28,432 8 2 I i | l_ Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1945 Total granted*! • • •• •• 4,442 2 4,444 1794,898 13 2 1,404 2 11,406169,457 0 3 1:2,015 59,865 0 0 j 1,1431,1132,256 49,647 0 0 6,989 13132110,121 1,073,867 13 5 Total discontinued* .. .. 2,240 2 2,242 312,603 6 11 607 1 ! 608 65,138 18 8 j 663 17,953 0 0 ; 979 9701,949 41,665 0 0 3,826 1636! 5,462 437,360 5 7 1 . : j Total existing at 31st March, 1945.. 2,202 .. 2,202 j482,295 6 3 jj 797 1 798X04,318 1 7 1,352 41,912 0 0 164 143 307 7,982 0 .0 3,163 1496:4,659 636,507 7 10 Less amount receivable from the Working Bailways Account .. .. .. .. .. .. .. .. .. .. . .. .. 24,323 14 0 £612,183 13 10 * Total allowances granted and discontinued include 200 widows at £18 only, and 693 children at £13 only, exeunt prior to 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.—Progress of the Fund Balanoe forward. Allowances granted. £ g. d. £ s. d. 1903 to 1935 .. .. .. •• ■■ 658,575 16 5 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 1,164,045 0 0 27,466 4 0 1944 .. .. .. •• 1,151,546 6 9 66,188 14 0 1945.. .. .. ■■ •• 1,130,936 6 0 71,088 16 0 1,073,867 13 5 Less members died, &c. .. .. 437,360 5 7 Less liability of Working Railways Account 24,323 14 0 — 461,683 19 7 Annual liability at 31st March, 1945 .. .. £612,183 13 10

Table D. —Statement of Investments

1945. 1944. Per Cent. Per Cent. Average rate of interest on securities held at 31st March 4-133 4-108 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest .. .. .. 5-043 4-975

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a In 8 9 ! 10 3 per 4 per 5 per 6 per 7 pw Total Cent. Cent. Cent. Cent. Cent. c % nt l c^ntI : 1 Contributors at commencement of year 515 1 15,175 1,404 318 75 46 36 17,570 New contributors during year .. .. .. 745 218 141 92 38 1 1,235 Total .. .. .. 515 1 15,920 1,622 459 167 84 37 18,805 Contributors discontinued during year 143 .. 565 66 9 1 3 787 Total contributors at 31st March, 1945 372 1 15,355 1,556 450 167 83 34 18,018

Funds invested at 31st March. 1945. 1944. £ s. d. £ s. d. At 3 percent. .. .. 46,425 0 0 „ 3-25 „ 1,700 0 0 1,700 0 0 3-375 .. .. •• 25,000 0 0 25,000 0 0 "3.5 .. .. 158,936 18 9 162,155 17 6 "4 .. .. .. 212,070 10 0 257,145 10 0 "4.25 „ .. .. •• 332,193 18 5 310,427 14 8 "4.4 .. .. 335 0 0 335 0 0 " 4.5 " .. .. 216,321 12 8 266,525 10 0 "4.75 .. .. 1,008 18 11 1,193 15 7 "5 " .. .. 93,099 13 2 105,563 9 10 "6 „ ■■ ■■ •• 1,389 11 8 1,458 11 8 Cash in hand .. .. 14,870 11 11 7,371 14 1 1,103,351 15 6 1,138,877 3 4

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Statement of Accounts Revenue Account for the Year ended 31st March, 1945 Expenditure £ Income £ Retiring-allowances to members .. .. .. 562,747 Members'contributions .. .. .. 259,618 Allowances to widows and children .. .. 48,995 Members' contributions on account of casual service 17,642 Cost-of-living bontis .. .. .. .. 47,392 Fines .. .. .. .. .. .. 267 Refund of total contributions .. .. .. 42,608 Subsidies—Refund of contributions in excess of allowances drawn Consolidated Fund .. .. .. .. 110,900 by deceased beneficiaries .. .. .. 1,483 Working Railways .. .. .. .. 170,000 Transfers to other funds .. .. .. .. 1,147 Increased allowances to annuitants as provided for War damage insurance .. .. .. .. 112 by Statutes Amendment Act, 1936 .. .. 2,864 Part-cost actuarial investigation of the fund .. 202 Working Railways on account of increased allotvAdministration charges — ances to widows and children .. .. 21,118 Travelling-expenses of Board members .. .. 49 Cost-of-living bonus .. .. .. .. 47,392 Public Trust commission .. .. .. 1,113 New Zealand Railway Tradesmen's Association .. 14 Audit fee .. .. .. .. .. 50 New Zealand Engine-drivers, Firemen, and Cleaners' Salaries .. .. .. . ■ •• 1,809 Association .. .. .. .. 20 Postages .. .. .. .. .. 454 Amalgamated Society of Railway Servants .. 12 Printing and stationery .. .. .. 184 New Zealand Railway Officers' Institute .. .. 8 Interest— £ Investments .. .. .. .. 48,772 Treasury Department .. .. .. 9,055 57,827 Commission on Government Life Insurance collections 5'3 Balance carried down, being excess of expenditure over income for the year .. .. .. .. 21),610 £708,345 £708,345 £ £ Balance brought down .. .. .. .. 20,610 Accumulated funds brought forward on Ist April .. 1,151,54(3 Balance, accumulated funds as at 31st March .. 1,130,936 £1,151,546 £1,151,046 Balance-sheet as at 31st March, 1945 Liabilities ' £ Assets Accumulated funds as per Revenue Account .. 1,130,936 Investment Account— £ .'£ Casual employees'contingent contributions ... 20,332 Investments .. .. .. 1,088,481 Retiring and other allowances due (not paid) — Cash in hand .. .. .. 14,871 Members .. .. .. .. .. 1,183 1,10.3,352 Widows and children .. .. .. .. 642 Current Account— Refund of contributions authorized (not paid) .. 1,605 Cash in hand .. .. .. .. .. 14,265 Refund of contributions in excess of allowances drawn Contributions and fines in transit .. .. 18,139 by beneficiaries (not paid) .. .. .. 183 Contributions due by Army, Navy, and Air Force Transfers to other funds authorized (not paid) .. 63 Departments .. .. .. .. .. 15,862 Interest paid in advance .. .. .. .. 60 Contributions outstanding .. .. .. 1,910 Public Trustee .. .. .. .. .. 427 Contributions due by members in respect of casual Reserve for bad and doubtful debts . . .. 3,000 service .. .. .. .. .. 15,655 Rebates of contributions (National Expenditure Working Railways— Adjustment Act, 1932).. .. .. .. 34,015 On account of increased allowances to annuitants as Sundry creditors .. .. .. .. 66 provided for by Statutes Amendment Act, 1938.. 238 On account of cost-of-living bonus .. .. 2,900 On account of additional allowances to widows and children .. .. .. .. 1,794 Interest due not paid .. .. .. .. 7,036 Interest accrued but not due .. .. .. 11,329 Sundry debtors .. .. .. .. .. 32 £1,192,512 £1,192,512 R. Semple, P. H. McAuley, 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.—J. P. Rutherford, Controller and Auditor-General.

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