H.—26.

The average rate of interest earned for the financial year on the mean funds was £5 19s. 6d. per cent. Progress of the Fund. The following table illustrates the position of matters in relation to the fund since its inception :—

General.—lmportant legislation affecting the fund lias been passed by Parliament. 1. Section .39, Finance Act, 1930 (No. 2), provides special provision with respect to retiringallowances out of the fund to certain members of the Defence Force and clerical officers of the Defence Department. These contributors are entitled to receive such annual retiring-allowances as is certified by the Government Actuary to be the actuarial equivalent of a deferred pension commencing at the earliest date on which they would have been entitled pursuant to notice of their intention in that behalf to retire voluntarily, of an amount calculated in the manner prescribed by section 26 of the Public Service Superannuation Act, 1927, in respect of their continuous service at the date of their compulsory retirement. 2. Section 8 of the Finance Act, 1931, provides as follows : Every person whose rate of salary is reduced by Part I of this Act, and who is a contributor to the Public Service Superannuation Fund, may, by in writing to the Secretary of the Board charged with the administration of the fund or before the 30th day of September, 1931, elect to continue to contribute to the fund as if his salary had not been so reduced, and every person so electing and contributing shall be entitled on retirement to a retiring-allowance (if any) of the same amount as that to which he would have been entitled if his salary had not been reduced by this Act: Provided that ill the case of any such person who, at the 31st day of March, 1931, is, pursuant to an election made by him pursuant to subsection (1) of section 11 of the Public Expenditure Adjustment Act, 1921-22, contributing to the fund on the basis of a higher rate of salary than that actually being received by him on that date, such person may elect, pursuant to this section, to continue to contribute to such fund on the basis of such higher rate, and on retirement his retiring-allowance (if any) shall be calculated accordingly. Where a contributor does not make an election pursuant to this section, the amount of contributions deducted (whether before or after the passing of this Act) from his salary, in respect of the difference between the rate of his salary as reduced by this Act and any higher rate of salary to which he may have been theretofore entitled, or on the basis of which he had theretofore been contributing to the fund, shall he held by the Superannuation Board, and shall be credited to the contributor in satisfaction to the extent thereof of contributions thereafter becoming payable. 3. Section 14 of the Finance Act, 1931, as amended by section 42 of the Finance Act, 1931 (No. 4), provides as follows : Any person, being a contributor to the Superannuation Fund, who at any time after the passing of this Act (11th April, 1931) is compulsorily retired through no fault of his own from the Government service, and who at the date of such retirement would, if not more than five years were added to his age or length of service, be entitled as of right, or with the consent or approval of the Minister in Charge of the Department in which he is employed, to give notice for the purpose of section 26 of the Public Service Superannuation Act, 1927, of his intention to retire voluntarily shall on nis being compulsorily retired as aforesaid be entitled to receive from the Superannuation Fund an annual retiring-allowance which shall not in any case be of an amount greater than the maximum amount which the Government Actuary certifies can be granted by way of such retiring - allowance without imposing on the Superannuation Fund any additional liability by reason of such retiring-allowance being granted before the earliest date on which the contributor would have been entitled as of right to receive a retiring-allowance on his voluntary retirement. 4. Section 20 of the.Finance Act (No. 2), 1931, reads as follows : On and after the Ist day of April, 1931, no person shall be entitled to have his length of service in the Cook Islands Public Service or the Samoan Public Service computed for the purpose of any Superannuation Act in the manner provided by section 28 of the Cook Islands Act, 1915, or section 23 or section 43 of the Samoa Act, 1921, or subsection (4) of section 47 of the Public Service Superannuation Act, 1927, unless after his having served for ten years in either such service the Minister for the Cook Islands, or the Minister of External Affairs, as the case may require, directs that such person's length of service shall be so computed : Provided that nothing in this section shall affect the right of any person to have computed as aforesaid any period so served by him before the Ist day of April, 1931. 5. Subsection (6) of section 7 of the Public Service Superannuation Act, 1927, has been amended by section 41. of the Finance Act, 1931 (No. 4). For his services under the Public Service Superannuation Act, 1927, the Public Trustee shall be entitled to receive from the fund such amount as may be prescribed by regulations. As from the Ist November, 1931, an amended scale of charges has been agreed to, to the advantage of the fund. A. T. Ngata, Chairman,

2 —H. 26.

3

Year ended 31st December, Year ended 3] st March, 1908. 1916. 1924. 1931. 1932. Total number of contributors .. .. 7,235 13,313 15,021 18,197 17,516 Total amount contributed annually .. £79,831 £141,844 £217,692 £270,316 £241,966 Interest received .. .. .. £1,295 £42,314 £113,608 £162,888 £168,453 Number of pensions and allowances payable 122 1,233 2,362 2,953 3,379 Annual value of retiring and other allow- £8,881 £88,392 £251,894 £383,923 £458,'434 ances payable Total amount of contributions refunded .. £484 £23,391 £53,303 £40,754 £48,552 Expenses of administration .. .. £890 £2,318 £6,229 £8,418 £8,650 Total amount of accumulated fund .. £71,481 £896,568 £2,039,043 £2,917,154 £2,888,034