8.—9

4

Expenditure. —The allowances paid to contributors who have retired, and to dependants of deceased contributors, and annuitants, amounted to £42,001 Bs. 10d., an increase of £4,625 13s. Bd. over that of 1915. A considerable number of annuitants were temporarily re-employed during the year, and in many cases their allowances were reduced in accordance with the provisions of section 14 (2) of the Act. The amount saved to the fund in 1916 was approximately £1,140. Refunds of contributions on voluntary retirement from the Education service amounted to £4,682 2s. 2d., the refunds to personal representatives of deceased contributors amounted to £1,915 Is. Id., while contributions amounting to £211 lis. 6d. were transferred to other superannuation funds. Administration Expenses. —Hitherto only a very small portion of the expenses of administration have been paid by the fund, practically the whole cost having been borne by the Education Department. The Board considered it only reasonable that the fund should be debited with such expenses, and accordingly an expenditure under this head for 1916, amounting to £501 18s., was approved. Net Revenue. —The total for the year was £40,576, as compared with £37,882 in 1915. Accumulated Funds. —These amounted at the end of the year to £381,158 Is. 6d. 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 £101,000. Investment of the Fund. —The fund receives interest on daily balances in the hands of the Public Trustee of 4|- per cent, on the first £6,000 and 4J per cent, on the remainder. The rates are the maximum allowed by the Public Trust Office Act. As stated last year, the Board is of opinion that a higher rate of interest could be earned. Legislation is necessary, however, before this can be done, and the Board has drawn the attention of the Government to the matter. It must be noted, however, that in 1916 the fund received from the Public Trustee a bonus of £1,385 19s. 5d., being 10 per cent, of the interest earned by the fund during the period Ist April, 1915, to 31st March, 1916, this bonus being paid under recent legislative provision authorizing the distribution pro rata among the estates in the common fund of the Public Trust Office of a certain portion of the profits of that Office. This raised the rate of interest to over 4| per cent. Actuarial Investigation. —The Actuary appointed by the Governor for the purpose, in his report on his investigation of the fund for the years 1911, 1912, and 1913, recommended that the annual subsidy be increased from £17,000 to £33,000. Owing to the special circumstances, however, the higher subsidy has not been paid by the Government. A further investigation of the fund will be made during the current year. Contributors on Active Service. —The number of contributors who joined the Expeditionary Force up to the end of 1916 was 346. Of this number thirty-two have been killed in action or died of wounds or disease, while twenty-two have returned to New Zealand and have resumed the duties of their previous positions. As previously intimated, the Government has undertaken to pay the contributions of members during the period they are members of the Expeditionary Force. The amount thus paid by the Government in 1916 amounted to £2,722 14s. 3d., making a total of £4,073 17s. lOd. Of the deceased contributors thirty were unmarried, and their contributions to the fund (together with the amounts paid by the Government on their behalf up to the date of their decease), amounting to £1,111 10s. 9d., were refunded to their respective estates. One contributor was survived by a widow and three children under the age of fourteen years, and the other contributor by a widow and one child under the age of fourteen years, to each of whom the usual allowance was granted. Legislation. —The Board has suggested various necessary amendments in the Acts relating to the fund, but owing to the decision by the Government to legislate only in regard to matters concerning the war these amendments have had to stand