1938. NEW ZEALAND.

NATIONAL PROVIDENT FUND. TWENTY-SEVENTH ANNUAL REPORT OF THE BOARD, FOR THE YEAR ENDED 31st DECEMBER, 1937.

Presented to both Houses of the General Assembly 'pursuant to the National Provident Fund Act, 1926, Sections 72 and 74.

PART I.—THE FUND (SECTION 72). 1. The progress indicated in last report has been fully maintained despite the low income limit of £300 per annum that still obtains for entrants. This figure was established in the far past when the standards of remuneration and living were lower than at present, and there is no doubt that if the limit were raised in consonance with present-day standards, the Fund, which is unique in its structure, would play a much greater part in the life of the community. 2. Summarized figures for the twelve months ended 31st December, 1937, as compared with those to 31st December, 1936, are set out below, detailed statistics being annexed : — 1937. 1936. New contributors .. .. .. • • 4,902 3,265 Local bodies .. .. • • - ■ • ■ 124 122 Total contributors .. .. .. •• 28,972 26,574 Annuitants .. .. .. • • • • 736 674 £ £ Contributions .. .. •• •• •• 266,431 246,559 Interest 185,016 174,044 Total income .. .. •• •• 583,420 526,457 Annuity payments .. . ■ •• •• 66,370 58,917 Other benefits .. •• •• •• 167,816 154,192 Total outgo .. .. •• •• •• 239,915 218,434 Funds at end of year .. .. .. 4,992,587 4,649,082 Rate of interest, per cent. .. .. .. £3 18s. 3d. £3 19s. Od. 3. The Fund is popular with local bodies, enabling them to provide superannuation for their employees, but as entry by the local body is optional (except in the case of Hospital Boards) difficulty arises when an employee of a contributing body transfers to one that is not in the Fund. 4. Actuarial examinations of the Fund as required triennially by section 73 of the Act are in arrear, but when the exigencies of the Service permit, the Government Actuary will no doubt overtake these arrears. 5. The work of the staff, including those in the " field," commands admiration. PART lI.—STATE SUBSIDY (Section 74). The amount of subsidy paid by the State for the year was £66,207 2s. 6d. W. Lee Martin, Chairman of the Board. R. Sinel, Superintendent of the Fund. Wellington, 4th August, 1938.