E.—9a

4

If the scheme were closed to new entrants at any time, however, this method would require revision. The term of seveuty-iive years has been taken as the period in which the deficiency should be liquidated, as this term is used for calculating the sinking fund to extinguish 1 lie public debt under the Public Debt Extinction Abt, 1910. 1!). Il is perhaps fitting here to draw attention to the fact that the value to the large employer of a scheme of superannuation for his employees is considered so great that in England not only does the Government provide the benefits for Civil servants without requiring any contributions from the employees, but (to quote from the report of a Royal Commission) " the same system (pensions without contributions) has been introduced into very many establishments of the highest standing in the country, where continuous, zealous, and thoroughly honest service are main requirements." In the New Zealand Superannuation Fund, on the other hand, it has to be bprne in mind that the employees themselves shoulder a large part of the burden. 20. It is clearly to the interest of (lie fund, and therefore to the general body of teachers, that all proposed legislation involving the reopening of options as to joining the scheme which have already lapsed, or an increase in Ihe benefits, or special concessions, should be carefully scrutinized by the Board, and only adopted after actuarial advice. I also think that the existing option under section '23 of the Public Service Classification and Superannuation Amendment Act, L9OB, should in' repealed after due notice to the teachers affected. A large number of teachers (especially females) leave the service in early life, and collecting the arrears of contributions with hi I crest from those who remain naturally does not put the fund in the same position as if all had joined at the outset. Investment of the Funds. 21, The funds are invested with the Public Trustee, and the rate of interest earned for the year ending the 31st December, l!)l(i, amounted to £4 12s. Bd. per cent., including the bonus on interest. For the same period the rate earned on the mean funds to the credit of the Public Service scheme was £5 Is. 2d., or £4 18s. Bd. per cent, after allowing for the 2|-per-cent. commission charged by the Public Trustee for collecting the interest. It is to be hoped, therefore, that the provisions of the Public Service Classification and Superannuation Amendment Act, 1915, which enabled the Public Service Superannuation Board to make its own investments, will be extended as early as possible to the Teachers' Superannuation Fund. 1 need hardly remark that an increase in the rate of interest earned would decrease the Government's liability in connection with the scheme. Perot Muter, F.1.A., Actuary, Government Insurance Department.