PUBLIC SERVICE.

Dominion, Volume 3, Issue 912, 3 September 1910, Page 9

PUBLIC SERVICE.

THE SUPERANNUATION QUESTION,'A CRITICAL RETROSPECT. SOME APPREHENSIONS. \ In Ing reply on Monday, .to a deputa* •. lion ;which asked .'that university piofes-. aors should be'aUowed ! .to , join the' Teachers' Superannuation Fund,, the'--J'r.inift^Sliaistei , . nietl'o. u series! of-•'state-ments, which have an important hearing; on .superannuation, funds'■ingeneral.. , ; Ac-. cordius'- to mi ex-officerMn... the, public':; service, who was -• iiiterviewnd'V by': ..a 'Dominion representative; the ; Prime'Min-' ; ister's utterance on. / this;; occasion!liae'. given riss. to." considerable misgivings' ■ ainoiiKrft: Civil, Snrvrijits.: v^j : -.-.• -:.'.- \''::■;.;.'..■.

""It"would- alhiobt. appear," this gen-,: i -'lleuian-V remarked, "that the Prime. M.iu-. : "r ister intends td reduce/the retiring! allow-v'- - uiieca ;6r • ntjm '• who '.are; at present inv the" i ; '\ /service.' The. possibility '"'-'of ■ '.this! being! ! Ilia iulciition is .strun^Uiiincti/by. ilie■ fact'': ■■ that last year ; he. actually proposed' av-G leductioii' or the kind;.. The proposal, ivaa..' •■ c-nibodied in a' Bill 'which, however,'-was:": ■ altered under, pressure." -The. proposal.-as"! ■; ~ Advanced - last year,, involved a- distinct /-'•'. breach -of .contract,.". for ■■ Civil -.-, Servants. "■■' joined tin: Siliieraiinualioti ]!'uiiil. -';upouiv-i' distinct.provisions. which..:offered "!Hiein \: : . certain.Benefits.- Ofr course,- iio .one would;//!;object; to ■■' jthe vsuper-! n~:unnuation . scheme so i'ar as ; future en-V.'& trants- are; concerned;; Imt 'to .:makVithe : ;Jh amendment! retrospective would he cer- :/'.■ iainfy, Vinpst unfair,!.;:particularly.•.-: as : >": many; !,;men -'in : the -: service ; we're■!''■ -entitled; , .. to'; other:/ benefits ■:.whichj:' : , they ■ : had to forgo;-.'before /' tliey.--. " ;codJd.;bu ..admittbd !to.-the■'.-supevaiuiua-:!;\ ! ■tion- scheme.*..-'The', original Civil Service!.-<V Act- provided, for'pensions!on a plan siini-.:.:--'. lar,to that obtaininsinthe O'd'Conutry;';,'! .Xater,,,'another !Act v iritrpduced-:an; aitera^ 1 ''■;; ■tipu' providing, for the payment of a" lu'mpv ;,/j sum 'as-compensation , on'retirement,' basso/;/! 1 / 'on-length of sei'yirJ!'and;salarj. In ]SaB'V;:V. ; an; Act was passed al)olishiug / .comp<?jisa-.'.. : ;! : tioh .'for' future entrants to tho arvicei ...: v and .substituting compulsory iiisuranee:", •:.V ■:. A- Goy'efrini'enf;-.Gain;V.'';•'.'.: . r,"Thero_ aro'any: liumber; of ;men;still mK--!■'; tho ■ seryifrei"pur!iued;j : the ■ ei-officer,-.'-' who'-.'■;!; ■<;utered : years ago - : .or/earlier,'.'and. lilf :'■?•''" ■61 'them .would: be!. SUll: entitled- to.'-'tEeJ.-v f eoinperisatipn allowance if'-they : had not■;■.-■ ;■ theiriclainvVon: joining''.the : f: % superannuation scheme. v'/Tlle, infefeno*..■!;":■' to -be 'drawn--from'- the!;!P.riuie .Minister's ;'■ .-■ remarks is : that', superannuation-is a b'ur-.: ; den : on the; country. ::':lt:;,is, ; n6t perhaps '■: generally !known': that Awhile under, the! present scheme; the "payis'' : !! >520,000 •. onnuaUy. nhtdfthe- flindV'tbere" :i9 : : v': ':- oil; thr other'hand an'-;enpi'riious-anmiaL.iv" 7 sftving'-'in : connection:'i-ivithy thoso :<iffi(!ers,.-; '.<.'? '.who.' on '.retiring ..would, iaparl-'- from; t\ie L v.: initiation of;!the. ! en-" !'! ■:titled'to'c'ompensati6nr)sVHe. aiuoihit. thus-S ; r last;year!-was!:i£sJ,7B6;!-from' this- : sum; of'J2O ; OOP \ contributed ii>: the.i'fuii'd' .there is 'a-cleai:. sating of- fi over. .^634,000.'. Of■;course;, the proportion-'K: ; will; greatly diminish '/under:.the present!!?',: scheme,-.but , , had !there -.been,'.-no; superan-■''?. ; - .nuatioii-.«ihtine./the ■ Goverrinienti: «;ould.'»;:; have had -to : pay : ! a. 'considerably-: greater. : v';j, jsum reyery J year :thari";!theii-:'p're»ent iv ! : :tnbution; of «B20,0(l!|.:! Pnrther; '■'in' respect v / ; ; of officers Already ;in:;,:thi6':«emce, these ii compensation would. have. '! .ued.though-ihia diminishing'proportion,-v"! tor __,about;sixteen. years/Vln 'short', , : the ■>r. .position: is • that,; tlie:;Goyerhnient ■ are •■ ac-/ : ■'"• tually; gainers, tlirough'^he : -inauguration;: '?i< ;of. the, superannuation';; scfieme;-. and";'art '"V cash:;Eaved./ ■[,■:■: '•'-," : 'y. y: .- !.:■;.-',■;: :: ; -.- J i-'"S : :;,p/-'V:;A*Question36f^Backbone^c::j! ; ;;- "The .Prime-■ Minister: -stated;' amongst ■ --r othervthings; that -Ministers ;hnd found : that , :there! was a'cdnsideraljle ef-' x> ■: fort -made.' by. employees, to", bring pres- -'■■'■"■■ sure..to.bear ;to,have, their, in- !- .creased, particularly i.djiring .'the>- last :t\vo " ■ or'tUKjo. s6'as; : lp give them greater'v-S superannuation, r This," the !exrofficer- cohV--;; tended, Vnth 7 ;the-iu;id..or the officers as.a. whole';;*'. Tfieifemedy! wasientirely. the" : i;u' .ot;; : :-:Miniscers'..'.theniselvesiv.:::itS , should '■'■.''': •surely!'. r be their.!Kdu'ty' ; to "safeguard : thefl-': conlTibutors,,to' : the ..fund 'by 'having siiffi.-. cieht backbone 1 toiresist.'Suph-unfair-at- ■i : "-~ t'eiUpts. V Moreover; while-the Prime' ;Min-' : - •? ister.profeskda .desiredo. prevoui: ivbiisw-'' mahy: : recent. abuses'/had ,beeii'undoubted- -. . Jy_' due: to ,the Govcninient taking advan't- iik ageiof. the opportunity to retire iiieri';by'V v :': : placing them oh •' thes. fundi! ;iThcre. had:'v.'f. beeii cases of .iueh: ; :ih/bail'health : -who■■■;■: tionU;.:;The yGbyerhment ; irefrained^:from : !S ■! retiring th_em -.whilo'.tb.by.were entitleS to-i !' coriipensation, .l)uti;had-;;';hot -;hositatedi"i/ long,' 'ivhen,. thesevmsn.hadr ''joined;'" J.tKeJ'li'l fund,-, to rclire. them ..under its! Vprpyi- ;: ./i sions,: thus placing'the', whole, burden ,oh'.'' the-fund.;. r i.'here : wasr.olsp ,a fcelingr.thatV'V"./ many: of the .older, officers ;'in: the sei'yie'e,!.:■:! were /kept' oiij.'instead/v'f -': being retired',:--' ,with:\(!D!npensatio'n, until /the fund ilcameV-S into .existence; so-that they might rcome 1 ;V.-. J under .its-benefits.•-• 'Vliis l was -a^fornii-.'bfA-.i i.uui)ositiori.'';''''..-"-v : :,-.x-j[;vL l , -'-::'.'-:-i -:- <i--";--A■?:;%«i

A' Change of Tactics.

■. '■:";."The., Prime, •• Minister .speaks/' ;contin- : ■ A .he'd■■ the', one-tune' official;."as though- the; ■: fuild werc/act'iiariaUyiuhsouud.; ;It'is hard'ji' to. uiulei'staud how;; lievcaivjiare , arrivedV.-. ■at.:.-that; conclusion; .seeing",that/'so I far ?■■': as we know ■there.'has.ibeen'.iiov'aptiuarial''-,;-examinatiori;';":' the :^»ctuarial ; -:"; examination"provided' for. in■•'theV-Act- has.'■■'" not :/yet} been ■.'mad^ : .:.?';The ,1 ; Prime'-jSlihis-vy .ter's• 'conclusions'under ■ this ■head?arevn6t->V .to : ; be\ accepted,.too'■readily. • : ,He v wa's/'*re-f;%; spqrisible 4or. the '/railway.- superaniiuatipn;. : - : scheme ; oii' a three.pep.cent .'.basis, "and;'= '■■ ■stated :iu, the; Houses that -it' was ab'soT.' ■ lutelj , ...sound.-.;iHe; did/.not hesitate!". to,'' belittle/ thp.conclusions;of actuaries at.thaf "'■ time.' In September,; 1905, "replying:.to , '-u>-I 1 question; by : Mr.. oas: "Allen,.-iie'-stated)!r r actuarial /'basis for ; , calculating/"' the'; liabilities' of such : funds Vivas.-.hot' ; to ! i;, be.'-.relied'-.:upon,'!save: over, an!/extended'; :: term/pfjye'ars.^:'VVheii ;thp; pre£ent : -Public/ : U Service •■ superannuation'/iyas: brought Vin;:-': Hie Minister his .tactics, aud .. Ue-'■■.-.■■;•. cHii«l.to'countenance i.aiiy'scliemb.-untij: it.:hadbben i approved ;'by the, actuaries.:,.'.■ The : scheme as lntrbducc.dvwas approved;', by..the. , actuaries, and,.itlis .hard;.to.;,un-.::;; ■"dersteri'd'h'o\r' , it,.caW:haTe.l*c»me , -«nsouiM;!v. ■in §o. : short a/.period;. consii!erins/.;tuat/inf i .one. ortivo respects/its-.benefits are':not" so'. / liberally: framed/' as ';was-priginajly ''in-'/f tended. .The.;bigher/salaried'office'rs-havq;?,. ' recently been reaping/ the.-, greatest-benefit; {-.••.; from , ; the :■ f iiu'd;, A , riunilier -. have -retired i; : alter .'contributing-only for, a r 'few : 'years,/;/ .and certainly. . without-/paying'.'. in. an.,: amount equivalent to- tlie; Jjenefits ■ tliey }."'-:■ hre : receiving.' 'Phis of; course is at'the/ . expense .of junior- coiitributors. jSTevcrthe-:-.' less no one 'would'; find fault, with ■ this if ;■ ■ ! the stability ; of ;the.fund, were not "called '■" in: question. ; f Surely; this matter: was taken; \\ ■ into consideration wlien / the,' scheme iyaa ■' / < ■ drafted. I myself,"' i concluded '/the ; '\ ex-;'/: 1 officerli "approve: iu principle: of fixing /a-.: ■ maximum.for pensions, but-this should!.'-.:. have been thought of: before-the fund .was :^f '.established.'.-. No attempt should/ now 'ibe , -': made to introduce/aVretrospectiye. altera- ; ■ tion when a .contract, lias::, been, entefedinto with officers,■ and;prosuinably-their [> /contributions.arranjjed 'on , that basis.'ji:/-"v : r