Hon. Waller L. Gordon (Minister of Finance):
Mr. Speaker, today I am tabling the reports of the quinquennial actuarial valuations required under sections 33 and 48 of the Public Service Superannuation Act.
The most important of these reports deals with the state of the superannuation account as of December 31, 1962 and shows that new deficiencies of $110,536,000 arose during the five year period ending on that day. The largest contributory factor was the deficiency arising from salary adjustments authorized in 1960 and again in 1962 for various classes of contributors. Subsequently the salary increases authorized in July, 1963 with effect from October 1, 1962 added another $22 million to this deficiency.
In accordance with the policy outlined in this house on March 6 of this year authority will be sought from parliament later in this fiscal year to write off to net debt the initial deficiency of $110,536,000 plus interest, and to charge the deficiencies arising from pay increases authorized during the fiscal years 1963-64 and 1964-65 against expenditures over a five year period commencing with this fiscal year. Thus one fifth of the deficit of $22 million plus interest and one fifth of the deficiencies arising from subsequent similar salary increases will be charged to expenditure during the fiscal year 1964-65.
The other two reports which I have tabled related to the death benefit accounts established under part II of the act. These reports show that a satisfactory contingency reserve is being built up.
Subtopic: TABLING OF REPORTS OF ACTUARIAL VALUATIONS