SUPERANNUATION.

Dominion, Volume 4, Issue 958, 27 October 1910, Page 6

SUPERANNUATION.

'• _— A. COMPREHENSIVE SCHEME. Speaking to a reporter yesterday, the ■Mayor (Mr. T. M. Wilford), who is president of the New Zealand. Municipal Association, sketched tho possibilities of a superannuation scheme for the employees of municipalties and other local authorities. ' At the moment' Mr. Wilford is concerned only with municipalities. He is endeavouring .to secure an amendment to the Municipal Corporations Act by the deletion of . the "joint and several" provision it now,contains. The effect of this proviso is that in any aggregation of municipalities for the purposes of a superannuation scheme, the whole of the local bodies concerned aire responsible for the financial failure of any one of their number, and would have to combine, should it become, insolvent, in fulfilling its obligations. This, in effect, precludes united action, for prosperous municipalities aro naturally unwilling to guarantee the finan-cial-obligations of thoss which are in a less assured position. In the event of the desired amendment being secured, the whole of the Dominion municipalities will be circularised: and invited to co-operate in a universal superannuation scheme. An aotuarial report will also be -obtained as to the lines on which tho scheme should be framed, the basis of contribution, and so forth. The immediate benefit resulting from the initiation of a universal scheme would be a better administration-of funds. If these- were entrusted to a single administration better investments and better interest could ho obtained than if each local body acted independently. Another obviqns benefit following a united action would be the establishment of a uniform scale of benefits. Mr. Wilford'. is of opinion that : the advantages of such a scheme might easily extend to local authorities other than municipalities, provided the Local Authorities Act were amended in the same manner as it is now proposed to amend the Municipal Corporations Act. Both contain the "joint and several" provision in respect of liabilities under a, superannuation scheme. Granted the amendment, which in each case is necessary, local bodies, such as county councils and road boards, would be in a position.to unite with municipalities in their superannuation scheme, and share in its benefits.