H —26 A.

The annual subsidies required under these headings range from £349,000 to £359,000 for the five years, and average £353,000 per annum. The. Fund should receive these Subsidies in the middle of the year to which they apply—i.e., on 30th September. The Act, however, provides for payment of the subsidy in the month of January, and consequently the above amount falls to be increased by interest t'o, say, £357,000. 13. From paragraphs 11 and 12 the minimum annual subsidy required from the State in January of each of the years 1940 to 1944 inclusive is as follows: — £ On account of subsidies short paid in the past .. .. .. 216,000 On account of retiring-allowances and widows' and children's annuities which will be payable during the five years Ist April, 1939, to 31st March, 1944.. .. .. .. .. .. .. 357,000 Total annual subsidy required .. .. .. .. £573,000 Any subsidy or part thereof paid after its due date should be increased at interest at 4 per cent, up to the actual date of payment. The whole of the above subsidy is not payable from the Consolidated Fund as might be inferred from the legislation quoted in paragraph 9. Legislation enacted in 1927 and amended in 1934 provides that where a contributor's salary is payable from some source other than the Consolidated Fund part of the total subsidy paid to the Fund in any year shall be met from the same source as is his salary. The apportionment of the subsidy payable in any year into the amounts payable from the various sources is outside the scope of this report, but it may be noted that a substantial proportion of the contributors to the Fund are employed by Departments whose expenses of administration are not a charge on the Consolidated Fund, and that therefore a considerable part of the subsidy paid in any year does not fall on the Consolidated Fund. S. Beckingsale, Fellow of the Institute of Actuaries, Government Actuary. The Public Service Superannuation Board, Wellington.

APPENDIX.

TABLE I. Membership at Successive Valuations.

4

Contributors. Retired Contributors. Widows. Children. Males. Females. Males. Females. Valuation Date. „ . „ . , CO . m . +7 . I +7 I -a* -z-ci s ■a-ig | -a iff s | .1 | g 3 92 fl H S -9 2 £ 3-Sn rO rj.a O 43 rQ | |1 III | || 111 a |.|| I §|g a ! | I £ «Jo,a «js j?5 J <25 a _ d d 2 <1 £ £ £ £ £ £ £ £ 31st Deo., 1910.. 7,465 1,280,459 88,007 906 77,660 4,582 366 37,904 14 348 60 1,080 47 611 1913.. 9,611 1,704,408 111,297 1,198 115,970 6,710 517 56,065 22 679 138 2,484 134 1,742 1916.. 11,850 2,135,272 133,169 1,463 154,500 8,793 671 78,956 39 1,387 250 4,500 273 3,549 1919.. 11,919 2,782,848 168,369 2,297 302,179 16,600 789 105,700 51 1,805 394 7,092 451 5,863 31st Mar., 1924.. 12,814 3,562,493 203,466 2,207 389,595 21,200 1,269 229,726 108 6,783 516 9,288 469 6,097 1927.. 14,908 4,062,769 226,884 2,006 371,879 20,110 1,394 285,451 169 14,052 624 11,232 429 5,577 1930.. 15,705 4,449,338 243,987 2,271 409,070 21,993 1,503 321,053 203 16,956 773 23,963 391 10,166 1934.. 15,125 4,017,267 215,134 2,244 379,183 20,070 1,944 421,477 304 27,698 968 30,008 342 8,892 1939.. 22,328 6,446,441 342,961 3,955 611,321 31,594 1,993 454,892 381 35,959 1,248 38,688 291 7,566 * These are the salaries which would be brought into account in calculating pensions. From 1924 onwards they exceed the actual salaries in that some contributors elected to continue contributing on their former salaries when their actual salaries were reducod. By 1939 the difference was negligible. t Up to 1927 these annuities are at the following rates : Widow, £18 per annmn ; child, £13 per annum. After 1927 they are at £31 per annum and £20 per annum respectively.