The Hotel Pension Fund, to which 3,500 hotel workers compulsorily contribute, made a profit of $2.232 million for fiscal 1992 -- down by 33.9 percent on the year before.

And despite a seemingly disastrous foray into the property market, the Fund's assets grew by 9.55 percent ($2.23 million) to $25.618 million.

The Fund faces a potential loss of $312,724 on a block of land it purchased for $555,223 in 1989.

It was intended to erect a new building on the land to house the Fund's four employees, with space also being available to rent to other businesses. The idea was later scrapped, but only after the Fund's trustees had spent $162,724 on feasibility studies and architectural plans for the project.

In the latest financial statements, auditor Anfossi & Butterfield has estimated the current value of the site at just $405,223 -- a 27 percent or $150,000 depreciation over three years.

Mr. Robert Rans, chairman of the board of trustees, said the land will be put up for sale.

"The overall actuarial position of the fund is very strong,'' said Mr. Rans, who added he did not regard the purchase as a bad investment.

Income during the year fell by 22.47 percent ($978,881) to $3.378 million, while expenses increased by 16.8 percent ($165,022) to $1.145 million.

Net investment income fell by 45.8 percent ($768,391) to $907,872, partly as a result of the depreciation of the undeveloped land.

Contributions from hotel workers dropped by 7.3 percent ($65,506) to $827,899.

Contributions from hoteliers fell by 8.1 percent ($144,984) to $1.642 million.

The biggest expense was salaries and benefits, which fell by 19.7 percent ($47,299) to $193,129.

Administrative expenses almost tripled to $11,291, compared with $4,029 in 1991.

Rent and utilities went up by 10.3 percent ($2,399) to $25,640.

The Fund paid out pension benefits of $580,470, an increase of 67.7 percent ($234,411) on 1991.

Contribution refunds came to $354,264 -- about the same as the year before.

There were 3,476 contributors at year-end, down by 154 on the previous year, and 357 pensioners.

The board of trustees which administers the Fund is made up of three members recommended by hoteliers, three recommended by the Bermuda Industrial Union and an independent chairman appointed by the Minister of Finance.

PENSION FUND 1992 RESULTS PROFIT $2.232 M INCOME $3.378 M EXPENSES $1.145 M ASSETS $25.618 M.