E.—Ba

2

4. The contributions and benefits provided by the Act, together with statements showing the progress of active membership, discontinuance of membership from various causes, the progress of pensions for each year, and the pensions granted since the previous valuation date, with the ages at which they were granted, will be found in Tables ItoIV of the appendix to this report. The ages of the contributors at the date of the valuation, their contributions, and other particulars are shown in Table V. 5. In addition to the statutory benefits above mentioned, the pensions payable to retired teachers in necessitous circumstances and to all widows and children of deceased members have been increased during the valuation period by a cost-of-living bonus from year to year, and as from the Ist April, 1925, the latter classes of additional allowances have been made permanent at the rate of £13 per annum in respect of the widow and of each child. These bonuses are provided for out of the Consolidated Fund, and, as they are not a charge on the Superannuation Fund, they have accordingly not been taken into account in making the valuation. 6. The number of pensioners on the fund at the 31st January, 1924, according to the cards supplied, was 1,078, drawing pensions amounting to £118,508 per annum. The number of contributors in active service at the Ist February, 1924, was 6,852, with aggregate salaries amounting to £1,855,500 per annum, and paying contributions at the rate of £104,141 per annum. The average rate of interest credited to the fund during the valuation period was £5 16s. per cent, per annum. 7. The income and outgo of the fund since the previous valuation were as follows : — Consolidated Revenue Account of the Teachers' Superannuation Fund prom the Ist January, 1920, to the 31st January, 1924. Income. £ s. d. Outgo. £ s. d. Funds at Ist January, 1920 .. 526,701 11 10 Retiring-allowances .. .. 353,896 13 5 Members'contributions .. .. 385,441 8 6 Contributions refunded .. .. 70,840 14 8 Government subsidy .. .. 221,416 13 4 Transfers to other funds .. .. 1,050 11 6 Interest .. .. .. 159,206 14 1 Commission .. .. .. 5,264 16 5 Transfers from other funds .. 434 17 2 Other payments .. .. .. 3,486 10 1 Funds at 31st January, 1924 .. 858,661 18 10 £1,293,201 4 II £1,293,201 4 11 Basis op Valuation. 8. In estimating the liabilities of the fund it was necessary to arrive at the proportion of the members withdrawing, dying, or retiring at each age. These factors have been carefully investigated in the light of the fund's experience since the previous valuation, and the rates and the Life and Service Table which have been adopted in the valuation as a result of this investigation are stated in Tables VI and VII appended. The next factors which entered into the calculations were the scales of average salaries in respect of males and females for the year immediately following the valuation date. The salary scales constructed were not themselves assumed in making the valuation, but the ratios of increase from age to age were applied to the actual salary of each contributor as at the Ist February, 1924. Pensions and widows' and children's benefits were valued on the same bases employed in the previous valuation. The rate of interest adopted in the valuation was 4 per cent. Results" op Valuation. 9. The valuation has been carried out in accordance with the above assumptions, and the results are shown in Table VIII appended, which table may be shortly summarized as follows : — £ £ Present value of the liability for benefits .. .. .. .. 6,125,697 Present value of the contributions receivable from members .. 1,192,487 Funds in hand .. .. .. .. .. .. 858,662 2,051,149 Present value of total liability of State .. .. .. .. .. 4,074,548 Less present value of existing subsidy of £68,000 per annum .. .. 1,700,000 Value of future subsidies to be provided by the State over and above present subsidy of £68,000 per annum .. .. . . . . .. £2,374,548 10. The above statement discloses a total State liability of £4,074,548, as compared with £2,813,176 at the previous valuation, giving an increase of £1,261,372. This increase has been due to two causes, viz.— {a) The natural tendency of the previous liability to increase on account of the principle laid down by the Act that the Government subsidy shall be so determined as to meet only the deficiency for the triennium immediately following the valuation date; and (b) The much larger number of contributors and pensioners who are now on the fund.