9
Amounts by which
totals in Col. (k) fail short or exceed cover required under Col.
TROPICAL DISEASES BUREAU.
Director's Pension.
Cover obtainable under proposed Equitable Life Serurance Society's Deferred Annuity Policies.
(2)
Bingle premium
(a)
1938 under (b). payment of Proo- Recurring premium ident Fund bal payment to provide ance to cover lump £430 per annum in under (a).
jurfod un
ហ
(B)
(v)
Proposed ReserLAR
Total of Cols.
Brend to meet, if processary,
к-
Totals of Cols.
(d) + (e).
covered liabilities
in earlier years,||
| ̃(2) + (2) sopun
(0) + (0
109
Year & Age
1924 (53)
મે
1925 (54)
1926
(55)
1000 0 0
1927
(56)
1039 6 8
1998 (57)
1066 13 4
DOOOOD
£ 8. d.
+
£ B. d.
4717 6 8
3848]
4814 13 4
3910]
4910 0 0
6801
9001
GLA
267 10 0
[6968
4000]
1929
(58)
1100 0 0
342 10 0
1930
(59)
1133 6 8
358 0 0
1931 (60)
1166 13 4
367 10 0
1932
(19)
1200 0 0
(62)
1283 6 8
392 10 0 4008]
(64)
(65) 1984 (68)
1266 13 4
405 0 0 [4008]
1300 0 0
1939 6 8
430 0 0 3974
10000000
40291
4080]
3991]
FOOK
3995]
6 8 5002 6 8 5066 13 4 5129 0 0 5213 6 8
5157 13 4
5204 0 0
5269 18 4 5295 0 0 5307 6 8 5242
1072
1107
1142
1179
642 10 0 827 10 0 1158 10 0
DOOP
£ s. d.
1242 10 0
1548 10 0
1866 10 0
2225 10 0
1417 10 0 1737 10 0
2524 10 0
2879 10 0
2059 10 0
3288 10 0
1217
2407 10 0
3624 10 0
1257
2755
0 01
4013 10 0
1297
3102 10 0
4399 10 0
1339
1882
1427
8477 10 0
4816 10 0
3847 10 0
5280 10 0
→ 0 .9866
5412 0 0
jooooo00000000
a.
d.
00%
1442 10
408
624
849
2490 10 0
1083
8074 10 0
3607 10 0
1826
4205 10 0
1579
4817 10 0
1642
1707
1775
5266 10 0
5719 10
6174 10
0
1847
6663 10 0
200000-000000
8. d.
0
-3274 16 8
-2858 3 4
-2420 10 0
- 1927 16 -1459 8 4 - 924 10 0
- 895 16 8
+ 108 16 8
0
+ 515 10 0
+ 932 3 4
+1899 16 8
TERI
7210 10 0
1997
7409 0 0
+1965 10 0 +2102 13 4
All the other figures in
Provision required
bring into line with
Civil Service Pension Rates.
Lump sum
= | |
(a)
(2)
Annual Pension
payment.
(and estimated Capital
Total of Cole.
(0) + 10%.
equivalent).
The figures in column (g) are estimated on the basis * The amount shown in column (e) for the year 1936 [i.e. £3985] is the guaranteed amount of the cash option in that year. columns (e) and (d) are the estimated figures on the basis of 3 per cent. compound interest. 4 per cent. compound interest.
10
Office. For the years 1981-86 the figures are based on the rates quoted under the Federated Superannuation System for Universities by the Equitable N.B. The figures for estimated capital equivalents in column (6) are based for the years 1924-30 on the ordinary annuity rates quoted by the Equitable Life Life Office, which are more favourable to the annuitant.
The above table is designed to give an idea of the progress of the scheme outlined in the memorandum considered by the Honorary Managing Committee on 2nd April, 1984.
The figures are not actuarial.-R. L. SHEPPARD.
885/26
PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COLENIUMI PROTOGRAPH-NOT TO
333
!
108
(B) The annual pension, representing one eightieth of the annual salary for each year of service, less £70, the sum named in the Secretary's memorandum as the estimated value of Dr. Bagshawe's Uganda pension.
In regard to (A) it is proposed that the sum now in the Provident Fund account (£971 118. 3d., plus a small amount of interest which will accrue) be paid to the Equitable Life Assurance Society as a single premium for a Deferred Annuity Policy with return of premiums. It will thus accumulate at a guaranteed 31 per cent. compound interest (possibly up to four per cent. if present conditions are maintained), and in addition to securing ample provision for the lump sum gratuity will produce a small surplus to help meet, if need be, the uncovered liabilities in the earlier years of the scheme.
In regard to (B) it has to be appreciated that under a Deferred Annuity Policy without return of premiums all money invested on Dr. Bagshawe's behalf would be lost in the event of his death before the Deferred Age.
10. The choice, therefore, seems to lie between (1) a Deferred Annuity Policy, with return of premiums, securing for seven annual payments of £498 188. (total, £3,492 6s.) an annuity of £367 10s. in 1931, or (2) a similar Policy securing for twelve annual payments of £267 10s. (total, £3,210) an annuity of £430 in 1936.
The amount of the annual premium under (1) may be thought prohibitive, but otherwise this proposal offers the simpler means of providing for possible retirement in 1931. Should, moreover, retirement be deferred to age 65, the cash value of the policy accumulating after 1931 at compound interest would be more than that necessary to purchase an annuity of £430 in 1986.*
11. In view of the smaller annual payments and the longer period over which these are spread, the proposal under (2) perhaps seems the more desirable, and is the one recommended for adoption provided some means be devised of securing cover for the liabilities which would arise if Dr. Bagshawe retired before 1936.
To make provision for this liability it is suggested that a sum be set aside yearly for say seven years out of the ordinary income of the Bureau to form a reserve fund which could be drawn upon in the event of Dr. Bagshawe retiring before the above Policy matures, but which in the event of its not being required for this purpose could be devoted to such purposes as the Committee might think suit- able. This reserve fund, it is suggested, should be invested with the Crown Agents for the Colonies. If, say, £200 were set aside yearly for seven years at 4 per cent. it would provide sufficient cover for possible retirement in 1931; after 1931 this reserve fund could be gradually released for other purposes as the amount of cover provided under the Assurance Policy increased.
Conclusions.
12. If the above proposal be approved the scheme resolves itself into :-- (A) The payment of the balance now standing to the credit of the Provident Fund Account to the Equitable Life Assurance Society as a single premium for a Deferred Annuity Policy on Dr. Bagshawe's life, with return of premiums, maturing in 1936, but surrenderable at any earlier date.t
(B) The payment of twelve annual premiums of £267 10s. to the Equitable Life Assurance Society for a Deferred Annuity Policy with return of premiums on the life of Dr. Bagshawe to provide an annuity of £430 in 1936,
(C) The setting aside out of the income of the Bureau annually for seven years for investment with the Crown Agents for the Colonies of a sum sufficient to provide an adequate reserve fund to be drawn upon in the discretion of the Managing Committee to supplement, if need be, the provision made above for Dr. Pagshawe's retirement. It is suggested that, say, £200 a year at 4 per cent. com- pound interest, free of income tax, would suffice, if such a rate of interest could be arranged through the Crown Agents. This would provide, approximately, £1,579
in 1931.
The Policies under (A) and (B) above would be taken out in the name of the Chairman of the Maraging Committee of the Bureau in order to bring them into for line with the Policies held under the Federated Superannuation System, Universities for other members of the Bureau staff.
To secure the benefits outlined, the first payments would need to be made before 29th July, 1924.
At 31 per cent. compound interest the cash value in 1936 would be about £4,668 equivalent to an annuity of approximately £504.
The amount returnable before 1936 would equal the single premium plus 3 per cent, compound interest to date of surrender.