highlight the "very real problem'' of financing Bermuda's national pension scheme.

"In Canada and the US, for instance, revelation of actuarial estimates in relation to the Canada Pension Plan and Social Security, respectively, has at least brought discussion to bear on the subject,'' Auditor Mr. Larry Dennis said yesterday.

His report, which covers the year ending March 31, 1991, was released yesterday.

At July 30, 1990, Bermuda's national pension scheme -- the Contributory Pension Fund (CPF) -- had accumulated $1 billion in accrued pension liabilities, he said.

That would be the amount current participants paying into the scheme would collect.

Several previous reports have highlighted Bermuda's pension scheme but "this is the first time the $1 billion figure has been mentioned,'' Mr. Dennis said.

It was reported two months ago, in the 1989/90 Auditor's report that according to actuarial calculations, contributions are expected to exceed benefit payments and expenses up to the year 2015 and during the period up to 2026 the surplus will equal about three year's benefits, a minimum solvency target.

With actuarial projections, the end of 2025 will be a critical point when annual contributions will not equal payouts.

But Mr. Dennis said that the CPF, with its pay-as-you-go principle -- like the schemes of other countries -- is in better shape than UK, US and Canadian pension plans.

Some countries have no pension money in reserve, Mr. Dennis said.

The CPF invests excess contributions in cash deposits and securities and at July 31, 1990 had $139.5 in invested assets, up $9.1 million from 1989.

The $139.5 million is anticipated to carry the plan from the year 2015 to the end of 2025.

Though there is no legal obligation associated with the $1 billion in potential CPF benefits there is a contractual responsibility associated with the Public Service Superannuation Fund -- the pension fund for civil servants -- of about $122 million at March 31, 1991, Mr. Dennis said.

As in the preface to the 1990/91 report, Mr. Dennis said: "While the Auditor's annual reports are not up to date, the current audits of the consolidated fund and all major organisations controlled by Government have been completed and the related audited financial statements issued except where information that is required to support or clarify significant amounts or policies has not been forthcoming from the Government's accounting officers and financial officers.'' He said the 1993 audited financial statements of the consolidated fund were released to Government on May 10, 1994 and the audit of the 1994 accounts has been completed since January, 1995, except for where information has not been provided.

Mr. Dennis also said no record of the 1991 and 1993 financial statements being tabled in the House of Assembly can be found but the Accountant General continues to investigate.

He prefaced his 1989/90 report, released in July of this year, with these same three notes.

Annual Auditor's reports are issued to the Speaker of the House of Assembly under section 101 of the Bermuda Constitution Order 1968.

The most recent report said Bermuda Monetary Authority year earnings for 1990 were $4.1 million, up from 2.8 million reported for 1989.

The office of the Auditor, reported $550,000 in expenditures for 1991, $35,800 under budget.

Total Government assets at March 31, 1991 were $566 million, up from the $494 million reported at March 31, 1990.

The 196 page report, also gives audit information on the consolidated fund, Government's main bank account, the Bermuda Hospitals Board, the Bermuda Housing Corporation, Bermuda College, as well as several other Government controlled organisations.

Auditor Larry Dennis