GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Appendix to the Journals of the House of Representatives, 1944 Session I, D-05

D.— 5

1944 NEW ZEALAND

GOVERNMENT RAILWAYS SUPERANNUATION FUND REPORT OF BOARD

Laid before Parliament in pursuance of Section 124 of the Government Raihoays Act, 1926

'The Board has the honour to transmit for the information of Parliament the following report upon the transactions of the Government Railways Superannuation Fund for the year ended 31st March, 1944. The Revenue Account, Balance-sheet, and statements in connection therewith, will be found appended. The expenditure for the year exceeded the income by £12,499. Members' Contributions. —The income under this heading showed an increase of £16,157. The number of contributors at 5, 6, 7, and 8 per cent, increased by 453, 52, 16, and 2 respectively, while contributors at 3 and io per cent, decreased by 136 and 3 respectively. The increase in amount of contributions is due to appointments to the permanent staff. Contingent Contributors. —During the year 49 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 483, and the amount standing to their credit £21,274. Subsidy.—The sum of £170,000 was paid into the fund by the Working Railways Department. The sum of £89,700 was also received from the Treasury in accordance with the provisions of section 3 of the Finance Act, 1942, leaving a deficit of £12,499. To meet the full commitments of the fund a :subsidy of £102,200 would have been required. Interest.—The interest earned amounted to £58,652, a decrease of £812 as compared with the previous year. Table D, Statement of Investments, shows that the a verage rate of interest on securities held at the 31st March, 1944, was 4-108 per cent., and the average rate earned on the mean funds for the year 4-975 per cent., as against 4-216 per cent, and 4-945 per cent, respectively for the previous year. Life Allowances. —The expenditure on account of life allowances to members amounted to £513,834, an increase of £36 as compared with the figures for the previous year, the year ended 31st March, 1943, showed an increase under this heading of £7,412. Table A, Statement of Allowances, shows that the average amount of the 268 allowances granted during the year was £224 Bs. 9d, and the average amount of 143 allowances discontinued was £182 Is. lid. Twenty-nine contributors have made elections in favour of dependants in accordance with the provisions of section 13 of the Finance Act (No. 2), 1940. Allowances to Widows and Children.—Previous to the passing of the Finance Act (No. 2), 194-0, 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 £46,064 —£29,219 to widows and children of contributors who died before retiring and £16,845 to widows and children of contributors who died after retirement. The sum of £20,021 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. Approval was received for the continuance of the cost-of-living bonus to annuitants in cases of special hardship where the allowance was less than £100, the amount of bonus granted being sufficient to bring the allowance up to £100, but with a maximum bonus of £26. The bonus is provided for out of the Working Railways Account, and is not a charge on the Superannuation Fund. At the 31st March, 1944, there were 2,848 members, 1,279 widows, and 311 children, making a total of 4,438 persons actually on the fund, involving an annual liability of £570,280. R. Semple, Chairman, Government Railways Supernnuation Fund Board.

D.—s

2

Less amount receivable from the Working Railways Account ...... J •• •• •• •• .. .. 23,570 18 0 £570,280 2 0 I ,T? tal a ' lowan ?« s ,granted and discontinued include 200 widows at £18 only, and 693 children at £18 only, exeunt prior to increase of allowances * fncreS by £3?553 4 8»^Uowances 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, 193§,

Particulars of Retiring and other Allowances discontinued during the Year

Progress of Retiring and other Allowances since Establishment of the Fund to 31st March, 1944

Table A.—Statement of Allowances for the Year ended 31st March, 1944

Section 102. On Attainment of Retiring Age or lor s ??tipn 11S - Section 113. Total Retiring and other Length of Service. Medically UnBt. Widows. Children. Allowances. Number. Number. Number. Number. i Annual Amount. 1 ; — Annual Amount - urn- Annual Amount, , Annual Amount, I . , . M p Tota , i; M F TntAl nnualAmount - ber. at £31 per Annum. | ' at £26 per Annum. Annual Amount. ; M - I iotal - M - ! F - [ Total - M. | F. Total. M. F. Total. Retiring and other allowances— £ s. d. £ s d £ s d £ d frt Existing at beginning of year .. 2,036 1 2,037 424,916 19 5 685 1 686 87,090 5 1 1,170 36,270 0 0 164 138 302 7 85"? 0 0 "' 885 1310 4 195 550 1 ">0 5 0 Gran ed during year at retirement 194 .. 194 49,407 2 0 74 .. 74 10,741 12 0 29 899 0 0 32 28 60 5 » ® S i Granted dunng year after retire- .. ___■ .. „ 113 3,503 0 0 2 I 3 78 0 0 2 114 116 3,581 0 0 .Total .. .. 2,230 1 2,231 474,324 1 5 759 1 760 97,831 17 7 1,312 40,672 0 0 198 167 365 9,490 0 0 3 187 14814 668 6 9 2 317 19 0 Discontinued during year .. 104 1 105 20,720 7 0 38 .. 38 5,319 12 0 33 1,023 0 0 29 25 54 M04 0 0 'l71 59 230 28[466 19 0 Existing at end of year .. 2,126 .. 2,126 453,603 14 5 721 1 722 92,512 5 7 1,279 39,649 0 0 8,086 0 0 3,016 1422 4,438 593,851 0 0

How discontinued — j j , , , 104 1 105 20,720 7 0 38 .. 38 5,319 12 0 25 775 0 0 142 26 168 26,814 19 0 * P " " " '' '' " ! "if 248 0 0 lj 29 25 54 1,404 0 0 29 j 33 62 1,652 0 0 Total •• •• 104 1 105 20,720 7 0 38 .. 38 5,319 12 oj 33 j 1,023 0 0 f~29 25 54~1,404 0 0 171 | 59 230 28,466 19 0

Total granted*t .. ..[4,258 2 :4,260 1746,180 10 2 11,292 2 11,294152,292 7 3 1,889 55,959 0 0 11,123 1,083 2,206 48 347 0 0 16 673 '976 9 649 1 009 778 17 r, Total discontinued* .. •• |2,132 2 |2,134 292,576 15 9 571 1 1 572 59,780 1 8 610 16,910 0 0 :j *954 MljliiS 1 0 0 t w 5 Total existing at 31st March, 1944.. 2,126 .. |2,126 453,603 14 5 721 l| 722 92,512 5 7 1,279 39,649 0 0 169 142 311 8,086 0 0 3,016 14224,438 593,851 0 0 " 1 — i— ! ! |

D.—s

Table B.—Statement of Contributors

Table C. —Progress of the Fund Balance forward. Allowances granted. £ s. d. £ s. d. 1903 to 1934 .. .. .. .. .. 645,181 9 5 1935.. .. .. .. .. 1,239,705 5 0 13,394 7 0 1936.. .. .. .. .. 1,246,984 7 11 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 C 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 1,002,778 17 5 Less members died, &c. .. .. 408,927 17 5 Less liability of Working Railways Account 23,570 18 0 • 432,498 15 5 Annual liability at 31st March, 1944 .. .. £570,280 2 0

Table D. —Statement of Investments

1944. 1943. Per Cent. Per Cent. Average rate of interest on securities held at 31st March 4-108 4-216 Average rate of interest earned on the mean funds, including reimbursements made by the Treasury in respect of reduction of interest .. .. 4-975 4*945

3

! 3 per 4 per 5 per 6 per 7 per 8 ® ™ T . Cent. Cent. Cent. Cent. Cent. f P eT , „ per . ! „ P . iotal - | | Cent. Cent. Cent. , j , ■ j—Contributors at commencement of year 651 1 14,722 1,352 302 73 46 39 17,186New contributors during year .. .. .. 898 120 34 2 .. .. 1,054 Total .. .. ..[ 651 1 15,620 1,472 336 75 46 39 18,240 Contributors discontinued during year 136 .. 445 68 18 .. 3 670 Total contributors at 31st March, 1944 ! 515 1 15,175 1,404 318 75 46 36 17,570-

I I Funds invested at 31st Maroh. j 1944. | 1943. £ s. d. £ s. d. At 3-25 per cent. .. .. .. 1,700 0 0 „ 3-375 „ .. .. .. 25,000 0 0 25,000 0 0 „ 3-5 „ .. .. .. 162,155 17 6 164,105 19 3 „4 .. .. .. 257,145 10 0 259,145 10 0 „ 4-25 „ 310,427 14 8 290,548 18 9 „ 4-4 „ .. .. .. 335 0 0 335 0 0 „ 4-5 „ .. .. .. 266,525 10 0 301,210 17 6 „ 4-75 „ .. .. .. 1,193 15 7 2,696 2 4 „ 5 „ .. .. .. 105,563 9 10 121,241 13 6 „ 6 „ .. .. .. 1,458 11 8 1,805 11 8 Cash in. hand .. .. .. 7,371 14 1 2,855 0 0 1,138,877 3 4 1,168,944 13 0

D.—s

Statement of Accounts Revenue Account for the Year ended 31st March, 1944 Expenditure £ Income £ Retiring-allowances to members .. .. 513,834 Members'contributions .. .. . 235 434 Stt&SZS&Fr. :: :: g£ K™' —»»■ -«— -—»™« ' Refund of contributions in excess of allowances drawn Subsidies by deceased beneficiaries i ) 338 Consolidated Fund .. .. 89700 Transfers to other funds 1,218 Working Railways .. .. 170 000 rZSZKZT?? ktV,, j •• '• 425 Increased allowances to annuitants as provided for Reserve for bad and doubtful debts .. .. 389 by Statutes Amendment Act, 1936 . .. 2 952 ,1 , Working Railways on account of increased allow-ravelling-expenses of Board members .. .. 40 ances to widows and children ■ . 20 021 commission M 49 New Zealand Railway Tradesmen's Association .. '15 6 " " •' ®0 New Zealand Engine-drivers, Firemen, and Cleaners' '™ leK 1,532 Association .. .. .. .. 22 ,'' ~ '" ' • • • • • 537 Amalgamated Society of Railway Servants .. 10 Printing and stationery .. .. .. 159 interest— £ Investments .. .. ... .. 49,184 Treasury Department .. .. .. 9,468 „ . . . 58,652 Commission on Government Life Insurance collections 50 Balance carried down, being excess of expenditure over income for the year .... .. .. 12 499 £596 ' 532 Balance brought down 12,499 Accumulated funds bro «§ ht fo ™ard on Ist April .. 1,164^045 Balance, accumulated funds as at 31st March .. 1,151'546 £1,164,045 £1,164,045

Balance-sheet as at 31st March, 1944 Liabilities £ Assets Accumulated funds as per Revenue Account .. 1,151,546 Investment Account— ' £ £ Casual employees'contingent contributions .. 21,274 Investments .. .. 1 131 505 Retiring and other allowances due (not paid)— Cash in hand '' " " ' Members 788 ' I ~0 S7T Widows and children 513 Current Account— Refund of contributions authorized (not paid) .. 1,934. Cash in hand .. .. 6 60 o Kefund of contributions in excess of allowances drawn Contributions and fines in transit !" 9 '949 by beneficiaries (not paid) . .. 183 Contributions due by Army, Navy, and Air Force lransfers to other funds authorized (not paid) .. 32 Departments.. .. . 18 588 Interest paid in advance .. .. .. .. 231 Contributions outstanding .. . V 739 Reserve for bad and doubtful debts' !! " 3,000 "of 01 " dU6 " ""P"* ° f ° aBUal fl ' wo Rebates of contributions (National Expenditure Working Railways— Adjiitaent Act, 1932).. .. .. .. 34,814 On account of increased allowances to annuitants as frf'l credltors 149 provided for by Statutes Amendment Act, 1936.. 242 Contributions paid in advance .. .. ~ 559 On account of cost-of-living bonus . . .. 19 On account of additional allowances to widows and children .. .. .. .. ~ 1 077 Interest due not paid .. ~ . ~ .. 7 333 Interest accrued but not due .. .. .. 11 428 Insurance premiums .. .. .. .. 2 War damage insurance .. .. .. .. 2 Treasury interest in transit .. .. .. 9,468 £1,215,479 £1,215,479 _ R. Semple, . . MoAuley, 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.— Cyril 6. Collins, Controller and Auditor-General.

Approximate Cost of Paper.—Preparation, not given ; printing (095 copies), £9 10s.

By Authority: E. V. Paul, Government Printer, Wellington.—l 944.

Price 3d.]

4