H.—l6b

Session 11. 1906. NEW ZEALAND.

POLICE PROVIDENT FUND: ACTUARIAL EXAMINATION FOR THE PERIOD ENDED ON 31st MARCH, 1906.

Laid before Parliament in pursuance of Section 29 of "The Police Provident Fund Act, 1899."

REPORT by the Actuary appointed by His Excellency the Governor to make the Actuarial Examination of the Police Provident Fund for the Triennial Period ending the 31st March, 1906, as provided by Section 26 of " The Police Provident Fund Act, 1899." Wellington, 29th September, 1906. 1. I have made an actuarial examination of the Police Provident Fund as on the 31st March, 1906, in accordance with the provisions of "The Police Provident Fund Act, 1899," which states that the result of such examination shall be so prepared as to show — (1.) The state of the fund at the close of the period; and (2.) Its expectant state at the close of the next ensuing triennial period, having reference to the prospective receipts and charges during such period. 2. The somewhat complicated benefits provided by the Act, together with the contributions, will be found in Table lof the Appendix hereto. It will be seen that three-fourths of the contributions are returned to members voluntarily resigning " after ten and not exceeding twenty-five years' service." Thus, a member who entered the Force at age 35 will after ten years' service receive back three-fourths of his contributions to the Fund on retirement at any time before attainment of the pension age, whereas another member entering at age 25 will receive nothing whatever should he retire between ages 50 and 60. This anomaly probably arose from an oversight when the Bill was framed. It would be set right by repealing the words " and not exceeding twenty-five," and I think this should be done. 3. The details of the experience of past and present members were supplied by the Police Department on cards prepared for the purpose. I have arranged these statistics, to show the progress of the Fund from the commencement, in the following Tables, which appear in the Appendix : — . Table 11, Statement of Progress of Active Membership, showing the number, salaries, and contributions of new members, increases by promotion, decreases by discontinuance, and total in force for each year. ~,.,. , , Table 111, Particulars of Discontinuance of Active Membership, showing the number retiring each year from different causes, together with the benefits granted each year. Table IV, Statement of Progress of Pensions, showing the number and amount of pensions granted, discontinued, and remaining in force each year, under the various sections of the Act. Table V, Present Annual Pay and Contributions, with Prospective Pensions to Officers now in the Service, showing these particulars separately for each year of age attained. Table VI, Classification of Pensions granted, showing the ages at which pensions have been granted under the various sections of the Act since the initiation of the Fund. From this table it may be ascertained that the average age at retirement of the ordinary pensioners (section 13) was 64-1; of pensioners medically unfit (section 12, (3)) and injured on duty (section 14), 51-8 ; and of all classes of pensioners combined, 57-4. 4. The number of pensioners on the Fund at the 31st March, 1906, was fifty-seven, and the number of contributors at the same date 651. 5. The progress of the Fund itself is best illustrated by the following Consolidated Revenue Account, showing the summaries' of actual income and outgo for (1) the first period, ending the 31st March, 1903, and (2) the second period, ending the 31st March, 1906, together with (3) a summary of the estimated income and outgo for the current triennium ending the 31st March, 1909.