H.—26.

Under section 114 of the Public Service Superannuation Act, 1927, the statutory allowances to widows and children were incieased 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-nine years, amounting to £2,478,494. One hundred and sixty-nine retiring or other allowances were discontinued by death, and sixtyeight for other causes —viz., 1 pensioner retired as medically unfit recovered in health and reinstated, 6 widows remarried, and 61 children reached the age of fourteen years. The annual amount payable at the close of the year was £499,869 os. Id., as shown in the statement attached. Income. —The total income for the year was made up as follows : — £ Members'ordinary contributions .. .. .. .. .. 306,981 Subsidy, Cook Islands and Samoan Administrations, &c. . . . . 738 Contributions from Government .. .. .. .. .. 163,930 Fines, &c. .. . • •. ■ • • • • • • • 343 Interest .. .. .. •• •• ■■ 142,831 Premium on conversion, local-body debentures . . .. .. 2,208 Total income for year .. .. .. .. .. £617,031 Outgo. —The pensions paid during the year to contributors who have retired and to dependants of deceased contributors amounted to £498,676 10s. 3d.—viz., £455,620 15s. 4d. to members and £43,055 14s. lid. to widows and children. Refunds of contributions to contributors who have left the Service amounted to £28,291 lis. 5d., while the refunds under section 42 to personal representatives of deceased contributors and annuitants amounted to £16,269 15s. lOd. Two contributors who were retired elected to accept a refund of their contributions under section 34, amounting to £1,082 17s. 5d., in lieu of retiring-allowances. Six contributors were transferred to other funds in accordance with the provisions of section 120, and their contributions, amounting to £807 3s. 5d., were accordingly transferred to such funds. The salaries of the staff and other office expenses were £2,409 7s. 4d. and £2,085 12s. lid. respectively. The Board, acting under the provisions of section 77 of the Mortgagors and Lessees Rehabilitation Act, 1936, wrote down investments by £722 16s. lOd. Premium paid on purchase of inscribed stock amounted to £5,072 13s. 9d., and is to be written off during the currency of the stock ; £370 17s. Bd. has been written off this year. The total outgo for the year was £553,372. Accumulated Funds. —These amounted at the end of the year to £2,997,898 9s. Balance-sheet. —On the 31st March the total assets of the fund, which include provision for the outstanding accounts, amounted to £3,116,893 4s. 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 follows :— New Zealand Government inscribed stock— £ s. d. 3| per cent. .. .. .. .. 210,530 0 0 4 per cent. .. .. . . . • 466,560 0 0 £ s. d. 677,090 0 0 Rural Advances bonds — 5 per cent.* .. .. 236,155 10 0 Mortgage Corporation of New Zealand inscribed stock — 3f per cent. .. ■■ 50,000 0 0 Debenture securities — per cent. .. .. •• 174,283 511 4J per cent. .. .. •• ■■ 428,021 13 2 5 per cent.f .. .. • ■ • ■ 1, 980 0 0 5| per cent.| . . • ■ • ■ ■ • 600 0 0 6 per cent.]" .. .. • • ■ • 33,500 0 0 638,384 19 1 Mortgage securities — 3| per cent. •• •• 4,000 0 0 41 per cent. .. •• ■■ 304,954 12 6 4| per cent. .. • • • ■ • ■ 325,468 0 8 5 percent. .. •• •• 29,754 411 5A per cent.s .. -. •• •• 4,225 12 9 6 per cent.J 601,660 7 10 64 per cent, j .. .. •• •• 3,493 9 8 1,273,556 8 4 £2,875,186 17 5

* 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. f Interest on and from Ist April, 1933, 20 per cent, lower than the rate prescribed by the securities or to the rate of 4J per cent, per annum, whichever rate is the higher. Section 5, Local Authorities Interest Reduction and Loans Conversion Act, 1932-33. t 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.

2