E.—9

2

Ten allowances were discontinued by death, and fifteen from other causes— viz., the allowance of two widows ceased on remarriage; eleven children attained the age of fourteen years; the allowance of one annuitant was cancelled on the ground that she was considered sufficiently recovered to re-enter the Education service; and the allowance of one annuitant, who had retired as medically unfit, lapsed on her re-entering the Education service. The number of allowances granted to widows and children was high compared with previous years. Twenty widows and forty-one children were granted allowances, compared with twelve and nine respectively in 1917. The large increase is due almost entirely to deaths arising out of the late influenza epidemic. Income. —The total income for the year was £99,976, made up as follows :— £ Members' ordinary contributions ... ... 60,160 Government subsidy ... ... ... ... 17,000 Interest on investments ... ... ... 22,514 Interest on arrears of contributions ... ... 152 Contributions transferred from other funds ... 150 Total for year ... ... ...£99,976 Expenditure. —The allowances paid to contributors who have retired and to dependants of deceased contributors and annuitants amounted to £48,354 ss. 5d., an increase of £3,232 2s. over the amount for 1917. Refunds of contributions on voluntary retirement from the Education service amounted to £6,560 2s. 5d., an increase of £1,374 12s. 6d. over the amount for 1917. The number of refunds granted increased from 140 in 1917 to 167 in 1918. The refunds to personal representatives of deceased contributors amounted to £5,436 ss. Id., an increase over the amount for 1917 of £2,586 2s. Id. The increase is due to the increase in the number of deaths amongst contributors who were members of the Expeditionary Force, and to deaths amongst other contributors arising during the influenza epidemic. Administration Expenses. —These amounted to £676 12s. Bd. Included in this sum is an item of £250 charged by the Education Department for clerical assistance. No part of the salary of the Secretary to the Board is, however, included in the item, the whole of his salary, in terms of the Act, being a charge on the Consolidated Fund. Net Revenue. —-The total for the year was £37,830, compared with £39,067 in 1917 and £40,756 in 1916. The decrease is due to the heavy payments on account of refunds of contributions. Government Subsidy. —The Government subsidy of £17,000 was received during the first quarter of the year. The total subsidies paid by the Government since the inception of the fund amount to £135,000. The Actuary in his last report recommended a subsidy of £43,000 for 1917, 1918, and 1919. Owing to war conditions the Government could not see its way to increase the subsidy for 1917 and 1918, but the Board notes with satisfaction the payment of subsidy of £43,000 for 1919. Investment of the Fund. —During the year the Board, with the consent of the Government, came to a very satisfactory arrangement with the Public Trustee for investment of the fund. On the Ist July, 1918, an allocation was made vro rata from the Public Trust Common Fund investments to the total amount of the Superannuation Fund on that date. The Superannuation Fund receives the interest on the investments so allocated, instead of the flat rate of interest payable on moneys in the Common Fund of the Public Trust Office. All moneys belonging to the fund now available for investment are invested' at current rates of interest. The Public Trustee charges 2-| per cent, on the interest collected for his services in connection with the fund. After allowing for this