E.-9a

2

7. The number of pensioners on the fund at the 31st December, 1919, according to the cards supplied, was 785, drawing pensions amounting to £63,404 per annum. The number of contributors at the same date was 5,016, with aggregate salaries amounting to £1,265,772 and paying contributions at the rate of £74,316 per annum. 8. The income and outgo of the fund during the three years ended 31st December, 1919, were as follows :— Consolidated Revenue Account of the Teachers' Superannuation Fund prom the Ist January, 1917, to the 31st December, 1919. Income. £ s. d. Outgo, £ s. dFunds at Ist January, 1917 .. .. 381,158 1 6 Retiring-allowances.. .. .. 150,965 15 2 Members'contributions .. .. 190,527 3 4 Contributions refunded .. .. 36,561 5 5 Government subsidy .. .. 77,000 0 0 Transfers to other funds .. .. 295 8 8 Interest .. .. .. .. 67,851 19 5 Commission .. .. .. 1,243 011 Transfers from other funds .. .. 595 19 3 Other payments .. .. .. 1,360 1 6 Funds at 31st December, 1919 .. 526,7011110 £717,133 3 6 £717,133 3 6 Valuation. 9. In making the valuation it has been assumed that interest at 4 per cent, per annum will be earned on the funds during the whole future lifetime of members ; that certain proportions of members will withdraw, die, and retire ; and that salaries and the corresponding contributions will increase at certain rates. These and other factors are more specifically set out in the Appendix. In regard to the interest, the rates earned during the triennium were as follows : — £ s. d. 1917 .. .. .. .. .. .. 412 4 per cent. 1918 .. .. .. . . .. .. 5 3 3 per cent. 1919 .. .. .. .. .. .. 5 8 5 per cent. While it is possible that higher rates may continue to be earned, it is hardly safe to allow more than 4 per cent, for the very long period of time covered by a pension fund. 10. The result of the valuation shortly is as follows : — £ Present value of the liability for benefits .. .. .. .. 4,122,989 Present value of the contributions receivable from, members . . 783,111 Funds in hand .. .. .. .. .. .. 526,702 1,309,813 Present value of total liability of State .. .. .. .. 2,813,176 Less present value of existing subsidy of £43,000 per annum . . . . 1. ,075,000 Value of future subsidies to be provided by the State over and above present subsidy of £43,000 per annum .. .. .. .. .. £1,738,176 11. This shows a total State liability of £2,813,176, as against £1,801,816 at the last valuation. The augmentation is accounted for by the increase in the number of contributors from 4,653 to 5,016, the salaries from £926,706 to £1,265,772, the pensions from £44,666 to £63,404, and other factors. It may be pointed out, by the way, that unless the subsidy is fixed above a certain minimum figure, the liability of the State will normally tend to increase, apart front the growth of the membership. 12. Section 38 (2) of the Act requires the report to be so prepared as to show " the probable annual sums required by the fund to provide the retiring and other allowances falling due within the ensuing three years, without affecting or having recourse to the actuarial reserve appertaining to the contributors' contributions." The contributions are insufficient to provide the full benefits for service after joining the fund, and consequently it is assumed that the principle underlying the section is that the State should pay for pensions arising out of service before joining the fund and for such part of the pensions arising out of subsequent service as is not covered by the contributors' contributions. The sum payable for pensions, the amounts purchased by contributions, and the subsidies payable on this basis during the three years 1920, 1921, and 1922 are as follows : —

Required for 1920. 1921. 1922. Jurrent pensions to members few pensions and family pensions £ 57,969 8,631 £ 55,960 19,011 £ 53,946 30,248 Total pensions )educt amount provided by contributions 66,600 12,937 74,971 15,455 84,194 18,347 Subsidy required 53,663 59,516 65,84'