GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Appendix to the Journals of the House of Representatives, 1948 Session I, D-05

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1948 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 followingreport upon the transactions of the Government Railways Superannuation Fund for the year ended 31st March, 1948. The Income and Expenditure Account, Balance-sheet, and statements in connection therewith will be found appended. The income for the year exceeded the expenditure by £84,584. Members'' Contributions.—The income under this heading showed a decrease of £20,481. The number of contributors at 3, 5, 6, 7, 8, 9, and 10 per cent, decreased by 111, 1,544, 146, 8, 11, 6, and 7 respectively. Contingent Contributors. —During the year 36 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 88, and the amount standing to their credit £5,296. Subsidy.—The sum of £396,106 was paid into the fund by the Working Railways Department, the sum of £81,500 was received from the Treasury in accordance with the provisions of section 3 of the Finance Act, 1942, and £497,000 was received from the Consolidated Fund Vote Department of Internal Affairs. Interest.—The interest earned amounted to £20,045, a decrease of £31,733 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, 1948, was 3489 per cent., as against 4-278 per cent, for the previous year. Life Alloivances.—-The expenditure on account of life allowances to members amounted to £815,231. The average of the 365 allowances granted during the year was £267 os. Bd., and the average of the 150 allowances discontinued was £223 lis. Id. Forty contributors have made elections in favour of dependants in accordance with the provisions of section 13 of the Finance Act (No. 2), 1940. Alloivances to Widows and Children. —Prior 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 £89,718; £46,539 to widows and children of contributors who died before retiring, and £43,179 to widows and children of contributors who died after retirement. The sum of £56,984 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.

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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. As from Ist October, 1947, the maximum bonus was increased to £43 7s. per annum. A procedure has been devised to taper off the bonus because of the fact that in due course retiring-allowances are increased by reason of general wage increases, the first of these having commenced, for present purposes, with the general wage increase jf 30th June, 1944. The terms of payment of the bonus are — £ s. d. Retirements prior to Ist October, 1945 .. .. .. 43 7 0 Retirements from Ist October, 1945, to 30th September, 1946 .. 35 7 0 Retirements from Ist October, 1946, to 30th September, 1947 .. 26 7 0 Retirements from Ist October, 1947, to 30th September, 1948 .. 17 7 0 Retirements from Ist October, 1948, to 30th September, 1949 .. 12 0 0 Retirements from Ist October, 1949, to 30th September, 1950 .. 6 0 0 Retirements after 30th September, 1950 .. .. .. Nil. This bonus is payable in respect of retiring-allowances not exceeding £335 per annum, and is reducible by £1 for each complete £2 excess of retiring-allowance over £335 per annum. No other means test is imposed. The sum of £91,118 was paid during the year. The whole cost of this bonus is borne by the Working Railways Account. Refunds of Total Contributions.—During the year the sum of £91,569 was paid from the fund in making refunds of contributions to 1,002 contributors who have resigned the Railways Service. This amount represents a decrease of £51,659 compared with the previous year. Withdrawals of Total Contributions. —The amount of £89,196 was paid during the year to 609 contributors who have exercised their option to withdraw their contributions from the fund under the provisions of section 23 of the Superannuation Amendment Act, 1945. The amount withdrawn is a decrease of £190,204 compared with the previous year. Accumulated Funds.—The balance of the accumulated funds increased from £473,090 in 1947 to £557,674 in 1948, due to the increase in subsidy payments. At the 31st March, 1948, there were 3,633 members, 1,587 widows, and 373 children, making a total of 5,593 persons actually on the Fund, involving an annual liability of £877,295. Amalgamation of Superannuation Funds. —This is the final report on the Government Railways Superannuation Fund which is abolished by section 10 of the Superannuation Act, 1947, and all moneys standing to the credit of the Government Railways Superannuation Fund are being transferred to the Government Superannuation Fund on Ist April, 1948, in accordance with section 11 of that Act. R. Semple, Chairman, Government Railways Superannuation Fund Board.

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Table A. —Statement of Allowances for the Year ended 31st March, 1948

Particulars of Retiring and other Allowances discontinued during the Year

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T 1 Section 102: On Attainment of Retiring Age or for Length of Service. Section 111: Medically Unfit. Section 113 : Widows. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount at £52 per Annum. M. E. Total. M. F. Total. Retiring and other allowances — Existing at beginning of year .. Granted during year at retirement Granted during year after retirement including increases to retiring allowances Total Discontinued during year Existing at end of year 2,433 264 1 2,434 264 £ s. d. 622,483 4 0 77,249 5 0 60 9 0 983 101 1 984 101 161 20 182 £ s. d. .,916 18 5 1,217 14 0 1,502 9S £ s. d. : 78,104 0 0 ; 1,144 0 0 » 5,148 0 0 2,697 108 2,589 1 1 2,698 108 699,792 18 0 26,017 15 0 1,084 42 1 1,085 42 1,134 12 5 ',515 10 0 1,622 3e ! 84,396 0 0 ! 1,872 0 0 2,590 673,775 3 0 1,042 1 1,043 174,619 2 5 1,587 ' 82,524 0 0 Section 113 : Children. Total Retiring and other Allowances. Number. Annual Amount, at £26 per Annum. Number. Annual Amount. M. V. Total. M. F. Total. Retiring and other allowances — Existing at beginning of year Granted during year at retirement Granted during year after retirement including increases to retiring allowances Total Discontinued during year Existing at end of year 206 17 1 185 17 5 391 34 6 431 58 £ s. d. 10,166 0 0 884 0 0 156 0 0 3,622 382 1 1,689 39 104 5,311 421 105 £ s. d. 872,670 2 5 99,494 19 0 5,364 9 0 224 34 207 24 11,206 0 0 1,508 0 0 4,005 184 1,832 60 5,837 244 977,529 10 5 36,913 5 0 190 183 373 9,698 0 0 3,821 1,772 5,593 940,616 5 5

- — Section 102 : On Attainment of Retiring Age or for Length of Service. Section 111: Medically XJnflt. Section 113 : Widows. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount at £52 per Annum. M. F. Total. M. F. Total. How discontinued — By death By expiry Total 108 108 £ s. d. 26,017 15 0 42 42 £ s. d. 7,515 10 0 29 7 £ s. d. 1,508 0 0 364 0 0 108 108 26,017 15 0 42 42 7,515 10 0 36 1,872 0 0 — Section 113: Children. Total Retiring and other Allowances. Number. Annual Amount, at £26 per Annum. Number. Annual M. F. Total. M. F. Total. - Amount. How discontinued— By death By expiry Total 34 24 24 58 £ s. d. 1,508' 0 0 150 34 29 31 179 65 £ s. d. 35,041 5 0 1,872 0 0 34 58 1,508 0 0 184 60 244 36,913 5 0

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Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1948

* Total allowances granted and discontinued include 200 widows at £lB and 463 at £3l, and 693 children at £l3 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 Bs., and 97 existing at 31st March, 1945, as provided for by section 31 (1) of Superannuation Amendment Act, 1945, by £2,010 Bs.

Table B. —Statement of Contributors

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— Section 102 : On Attainment of Retiring Age or for Length of Service. Section 111: Medically Unfit. Section 113 : Widows. Number. Annual Amount. Number. Annual Amount. Number. Annual Amount, at £52 per Annum. M. F. Total. M. F. Total. Total granted*t Total discontinued* Total existing at 31st March, 1948 5,154 2,565 3 2 5,157 2,567 £ s. d. 1,056,717 11 2 382,942 8 2 1,764 722 2 1 1,766 723 £ s. 258,108 19 83,489 16 . d. 3 10 5 2,396 809 £ s. d. 108,121 0 0 25,597 0 0 2,589 1 2,590 673,775 3 0 1,042 1 1,043 174,619 2 1,587 82,524 0 0 Section 113 : Children. Total Retiring and other Allowances. Number. Annual Amount, at £26 per Annum. Number. Annual Amount. M. F. Total. M. F. Total. Total granted*t Total discontinued* Total existing at 31st March, 1948 1,262 1,072 1,234 1,051 2,496 2,123 £ s. d. 55,887 0 0 46,189 0 0 8,180 4,359 3,635 1,863 11,815 6,222 £ s. d. 1,478,834 10 5 538,218 5 0 190 183 373 9,698 0 0 3,821 1,772 5,593 940,616 5 5 Less amount receivable from the Working Railways Account .. .. .. .. .. 63,321 11 0 £877,294 14 5

— 3 per Cent. 5 per Cent. 6 per Cent. 7 per Cent. 8 per Cent. 9 per Cent. 10 per Cent. Total. Contributors at commencement of year New contributors during year Total Contributors discontinued during year Total contributors at 31st March, 1948 125 12,279 253 1,082 54 312 30 132 13 62 2 21 1 14,013 353 125 111 12,532 1,797 1,136 200 342 38 145 24 64 8 22 8 14,366 2,186 14 10,735 936 304 121 56 14 12,180

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Table C.—Progress of the Fund Balance forward. Allowances granted £ s. d. £ s. d. 1903 to 1935 .. .. .. .. .. 658,575 16 5 1936 .. .. .. .. .. 1,246,984 711 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 1946 .. .. .. .. .. 1,080,778 12 11 70,410 13 0 1946 (increased allowances, Superannuation Amendment Act, 1945) .. .. .. 36,408 19 0 1947 .. .. .. .. .. 473,089 15 9 101,585 9 0 1947 (increased allowances, Superannuation Amendment Acts, 1945 and 1946) .. .. 91,702 8 0 1948 .. .. .. .. .. 557,674 2 3 104,798 19 0 1948 (increased allowances, Superannuation -Amendment Act, 1946) .. .. .. 60 9 0 1,478,834 10 5 Less members died, &c. .. .. .. 538,218 5 0 Less liability of Working Railways Account 63,321 11 0 601,539 16 0 Annual liability at 31st March, 1948 .. .. £877,294 14 5

Table D.—Statement of Investments

1948. 1947. Per Cent. Per Cent. Average rate of interest on securities held at 31st March .. 3-489 4*278

Funds invested at 31st March. 1948. 1947. £ s. d. £ s. d. At 3 per cent. 298,243 6 6 „ 3-375 25,000 0 0 25,000 0 0 „ 3-5 „ 19,234 5 10 21,143 17 4 „ 4 „ 64,535 0 0 89,431 8 0 „ 4-25 „ 74,921 17 11 139,928 7 4 „ 4-4 „ 335 0 0 335 0 0 „ 4-5 „ 17,805 6 11 80,711 1 5 » 5. „ 18,042 18 2 65,851 16 1 „ 6 „ 1,238 15 0 Cash in transit 74i 18 1 2,559 0 0 518,859 13 5 426,199 5 2

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Statement op Accounts Revenue Account for the Year ended 31st March, 1948 Expenditure £ Income £ Retiring-allowances to members .. .. .. .. 815,231 Members'contributions .. .. .. .. .. 259,479 Allowances to widows and children .. .. .. 89,718 Members'contributions on account of casual service .. 17,595 Cost-of-living bonus .. .. .. .. .. 91,118 Fines .. .. .. .. .. .. 295 Refund of total contributions .. .. .. .. 91,569 Subsidies— Refund of contributions in excess of allowances drawn by From Consolidated Fund (section 3, Finance Act (No. 2), 1942) 81,500 deceased beneficiaries .. .. .. .. 1,287 j From Internal Affairs (Appropriation Act, 1947) .. .. 447,000 Transfers to other funds .. .. .. .. 4,454 From Internal Affairs.. .. .. .. .. 50,000 Earthquake damage insurance .. .. .. .. 31 From Working Railways Account (section 119, £ Withdrawal of total contributions .. .. .. 89,196 Government Railways Act, 1926) .. .. 243,500 Administration charges— From Working Railways Account: Increased allow-Travelling-expenses of Board members .. .. .. 41 ances to annuitants compulsorily retired (section Public Trust Commission .. .. .. .. 419 31, Superannuation Amendment Act, 1945) .. 4,504 Audit fee .. .. .. .. .. 50 From Working Railways Account : Increased Salaries .. .. .. .. .. .. 3,761 allowances to widows and children (section 114, Postages .. .. .. .. .. .. 514 Government Railways Act, 1926, and sections 28 Printing and stationery .. .. .. .. 232 and 29, Superannuation Amendment Act, 1945) 56,984 Balance carried down, being excess of income over expenditure From Working Railways Account: Cost-of-living for the year .. .. .. .. .. .. 84,584 bonus .. .. .. .. .. 91,118 396,106 New Zealand Railway Tradesmen's Association .. .. 27 New Zealand Engine-drivers, Firemen, and Cleaners' Association .. .. .. .. .. 39 Amalgamated Society of Railway Servants .. .. 27 New Zealand Railway Officers' Institute .. .. 37 Interest— £ Investments .. .. .. .. 17,378 Treasury Department.. .. .. .. 2,667 20,045 Commission on Government Life Insurance collections .. 55 £1,272,205 £1,272,205 £ £ Balance, accumulated funds as at 31st March, 1948 .. 557,674 Balance brought down .. .. .. .. .. 84,584 Accumulated funds brought forward on Ist April, 1947 .. 473,090 £557,674 £557,674

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Balance-sheet as at 31st March, 1948 Liabilities £ j Assets Accumulated funds, as per Revenue Account .. .. 557,674 j Investment Account— £ £ Casual employees' contingent contributions .. .. 5,296 | Investments : Government stock and mortgages .. 518,118 Retiring and other allowances due (not paid)— Cash in transit . . .. .. .. 742 Members .. .. .. .. .. .. 566 J 518,860 Widows and children .. .. .. .. . . 761 I Current Account— Refund of contributions authorized (not paid) .. .. 3,388 | Cash in hand .. .. .. .. 2,572 Withdrawal of contributions authorized (not paid) .. .. 473 j Contributions in transit .. .. .. . . 7,890 Refund of contributions in excess of allowances drawn by Contributions due by Navy, and Air Force Departments .. 173 deceased beneficiaries (not paid) .. .. .. 183 Contributions outstanding .. .. .. .. 2,194 Interest paid in advance .. .. .. .. 12 Contributions due by members in respect of casual service . . 17,958 Public Trustee .. .. .. .. .. 224 Working Railways— Reserve for bad and doubtful debts .. .. .. 3,000 On account of increased allowance to annuitants as provided Rebates of contributions (National Expenditure Adjustment for by section 31, Superannuation Amendment Act, 1945 376 Act, 1932) .. .. .. .. .. .. 63 On account of cost-of-living bonus .. .. .. 11,077 Sundry creditors .. .. .. .. .. 402 On account of additional allowances to widows and children (section 114, Government Railways Act, 1926, and sections 28 and 29, Superannuation Amendment Act, 1945) .. 4,798 Interest due (including amount in transit). . .. .. 1,698 Interest accrued but not due .. .. .. .. 4,342 Sundry debtors .. .. .. .. . • 104 £572,042 £572,042 ' R. Semple, F. H. McAuley, A.R.A.N.Z. 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. Approximate Cost of Paper.—Preparation, not given ; printing (1,063 copies), £25. By Authority: E. V. Paul, Government Printer, Wellington.— 1948. Price 6c?.]

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