The stock market crash has wiped out $56 million from the government workers' pension plan in the past year, according to the latest report.

The market value of the Public Service Superannuation Fund (PSSF) plunged by 14.73 percent from $298,676,689 in 2000 to $242,462,454 at March 31 this year.

The steep decline in value contrasts with growth in invested assets of 10.18 percent in 1999 and 24.02 percent in 2000.

The pension fund covers civil servants, teachers, police, prison staff, and other public service groups.

The accounts also show the fund is nearly $300 million short of money to pay out all of its benefits to future pensioners and that Government will need to make hefty payments to make up the difference.

The actuarial evaluation from accountants PriceWaterhouseCoopers shows the pension has "unfunded liability" of $291,563,700.

The accountants state that to make up the difference in ten years, Government will have to pay in $42,477,000 annually. If it wants to bring the fund up to strength in 15 years, it will require annual top-ups of $33,030,500, but if it waits until 30 years, the annual bail-out will be $24,687,100.

But changes to accounting procedures brought some good news with the fund gaining $23,703,200 as a result of new actuarial assumptions.

The changes from 1999 to 2000 are that the accountants believe the return on investment will jump from 7.5 percent to eight percent.

Salary increase assumption goes from four percent to six percent each year, and the cost of living adjustment has been changed from three to four percent.

Men are also predicted to live three years longer than previously and women one more year.

There is also gloomy news for MPs and Ministers who face an increase in premiums to make up the shortfall in their pension fund.

The PriceWaterhouseCoopers evaluation of the Ministers and Members of the Legislature Pension Fund shows its shortfall, "unfunded liability," rose from $730,300 in 1997 to $3,759,800 at March 31 this year.

Currently, all MPs and Ministers pay 12.5 percent of their salary into the fund, which is matched by Government to make 25 percent.

But the accountants say 29 percent of salary will need to be paid into the fund to make up the difference needed to fund all future benefits.

They suggest the increases be paid by either the parliamentarians or Government, or be split between them.