2

H.—26.

for medical unfitness for duty, £4,009 7s. to 32 members ; to 1 Police contributor injured on duty, £238 per annum ; to widows and children of deceased members, £2,635 per annum to 85 widows, and £1,248 per annum to 48 children. Under section 114 of the Public Service Superannuation Act, 1927, the statutory allowances to widows and children were increased from £18 to £31 per annum and from ss. per week to 10s. per week respectively. The additional expenditure on this account is recovered from the Consolidated Fund. Civil Service Act, 1866 : Compensation Rights. —The total amount of such compensation for which the fund became liable since the initiation of the scheme is £561,134. To this amount must be added accretions to the date of retirement, approximately £143,000, for which the Consolidated Fund would otherwise have been liable, and the whole may be fairly set against the total subsidies paid to the fund during the past twenty-eight years, amounting to £2,333,333. One hundred and seventeen retiring or other allowances were discontinued by death, and fiftyseven for other causes—viz., four widows remarried and fifty-three children reached the age of fourteen years. The annual amount payable at the close of the year was £497,763 19s. 10d., as shown in the statement attached. Income. —The total income for the year was made up as follows £ Members' ordinary contributions .. . . .. .. .. 256,425 Subsidy, Cook Islands and Samoan Administration, &c. .. .. 561 Contributions from Government .. .. .. .. . • 147,952 Fines, &c. .. .. .. ■ • • • • • • ■ 391 Interest .. .. .. •• •• 151,599 Premium on conversion, local-body debentures .. .. .. 8,379 Total income for year .. . . .. . . .. £565,307 Outgo. —The pensions paid during the year to contributors who have retired and to dependants of deceased contributors amounted to £494,988 6s. 9d.—viz., £453,687 9s. to members and £41,300 17s. 9d. to widows and children. Refunds of contributions to contributors who have left the Service amounted to £35,700 ss. 10d., while the refunds under section 42 to personal representatives of deceased contributors and annuitants amounted to £8,180 17s. lid. Four contributors who were retired elected to accept a refund of their contributions under section 34, amounting to £923 3s. 2d., in lieu of retiring-allowances. Three contributors were transferred to other funds in accordance with the provisions of section 120, and their contributions, amounting to £305 Bs. 6d., were accordingly transferred to such funds. The salaries of the staff and other office expenses were £2,233 16s. lOd. and £2,000 13s. 6d. respectively. The total outgo for the year was £548,518 19s. Bd. Accumulated Funds. —These amounted at the end of the year to £2,934,239 19s. 9d. Balance-sheet. —On the 31st March the total assets of the fund, which include provision for the outstanding accounts, amounted to £3,028,433 Is. 7d. The balance-sheet appended gives full particulars as to the liabilities and assets. Investment of the Fund. —The total investments of the fund at each rate of interest were as follow: — New Zealand Government inscribed stock — £ s. d. 4 per cent. .. .. •• •• •• •• •• 596,162 13 9 Rural Advances bonds— 5 per cent.* .. .. . • •• •• •• •• 236,155 10 0 Mortgage Corporation of New Zealand inscribed stock — 3§ per cent. .. .. .. •• •• •• 50,000 0 0 Debenture securities. £s. d. 3i per cent. .. .. •• •• •• 100,000 0 0 4J per cent. .. .. • ■ • ■ ■ • 385, 308 18 1 5 per cent, f .. .. ■ ■ • • • • 5,250 0 0 5J per cent.f .. .. •• •• •• 3,045 0 0 6 per cent.f .. .. •• 75,400 9 8 569,004 7 9 Mortgage securities — 4J per cent. .. .. • • • • • ■ 128,155 0 0 4J per cent. .. .. •• •• 196,589 10 5 5 per cent. .. .. •• •• 39,586 2 3 5| per cent.| •• •• •• 4,032 3 8 6 per cent.J •• ■■ 982,243 14 3 64 per cent.J •• •• •• •• 4,093 9 8 1,354,700 0 3 £2,806,022 11 9

* Subject to an interest-tax at the rate of 20 per cent, charged on all interest on and from Ist April, 1933. Vide section 6, Finance Act, 1932-33. t Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4| per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. } Subject to a reduction of 20 per cent., but not to be reduced below the rate of 5 per cent, per annum. Part 111, National Expenditure Adjustment Act, 1932.