BIG SCHEME.

Dominion, Volume 5, Issue 1376, 29 February 1912, Page 6

BIG SCHEME.

TAKES SHAPE AFTER SIX YEARS, SUPERANNUATION. FOR TIIE HARBOUR BOARD MEU, For some 6ix years the Wellington Har« bom . Board have had iu view u sbheiut to provide Huperannuation for employees. Tho idea has at length crystallised and yesterday the board had lxjfore them the report ol Mr. Morris Fox, actuary, on u superannuation scheme for permanent employees of the board under the Local Authorities Superannuation Act, 1908.

Nature of the Scheme, Tho contributions to he paid under thr Act by, those joining the scheme arc:— 5 per cent for ages not exceeding 30 on joining; 0 per cent for nges over 30 but not exceeding 35; 7 per oent for ages over 35 but not exceeding -40; 8 per cent for ages over 40 but not exceeding 45; 9 per cent for nges over 45 but not exceeding 50; 10 per cent for ages over 50.'

Males may retiro after 10 yeare' contribution or at the age of 65; females may retire after 30 years' contribution or at the age of 55; but tho local authority may in any particular cose grant a pension after the age of f>o in the case of males and after tho age-of 50 in the case of females, and pensions may be granted at any age for ill-health. Tho pensions arc to be one-sixtieth of the average salary for tho last three years for every year of contribution'. Tho widows of contributors or pensioners iiro entitled to pensions of JCIS per annum during widowhood, and children of deceased contributors ov pensioners are entitled to ss. per week until nge 14. Contributions me returned without interest to contributors leaving tho gervict voluntarily ov otherwise. A local authority may grant an additional retiring allowance, not exceeding one-sixtieth, for every year of service prior to the commencement of the Act, viz., October 10, I'JOS, such additions to Iμ payable out of tho ordinary revenues of the local authority and not out of the superannuation fund.

The scheme may bo inr.de compulsory for future employees, but it would appear that persons at present in the service of the board have some option, ue to .whether they shall jojn or not.

What it Will Cost. ~ The actuary had computed the subsidy payable by the board, if all the present staff came into tho scheme, at .E2742 per annum, but he added the following qualification: —"If pensions for back-service are given as provided for by Section Iβ of the. Lccnl Authorities Superannuation Act, 1908, at tho rate of one-eixtioth of the annual salary for each year of service; tho annual charge on tho revenue of the board for, the permanent staff will be approximately as follows:—First year about £500; fifth year, about JC1200; tenth year, about AI7OQ; fifteenth year, about .£2OOO. It [is anticipated that the charge will , remain qt about .£2OOO a year . until the 25th year, viz., until those now aged 40 have reached Go, and it will then di-' minish and finally disappear."

And How Will it Be Met? The chairman (Mr. Fletcher) subiiiiU. ted the report to the board, and commended tho idea of superannuation ns a proper one for local authorities to take up. A f-chenio had }kqi\ submitted to the board by nn insurance company in Wellington, but the proposal had bcju investigated and found unsuitable. In any case tho Superannuation Act would prevent tho board from entering , upon it, beranso the Act provided that all moneys invested for Miperannuation must bo vostedin the Public Trustee. H the board accepted tho' pre.-Mit proposal, it would still have to bo submitted for approval to the stuff, who would ho required to pay considerable contributions under it. Ho therefore'moved that the scheme be adopted subject to the approval of the stall , . . Mr. Hin'.lmarsh seconded tlio motion. Mr. Frectli: Have any epecial fund* l been earmarked for this -purpose? The chairman: Xo. Mr. Rentier: Another 2d. or 4d. on the ships, I take it.

"Starting Piecemeal is Wronc" Mr. Colu'ii advised caution: "It aj* pears to me," ho said, "that this.matter is h> largo, and fraught with such importance that it should not bo considered lightly. Nor should we pass our yoto upon it until wo are particularly seised of all tho facts, mid tho large- amount of ground covered by Ihc proposal. In cases of this kind wo have to be just before we arc'generous. Me are nothing more than trustees for a largo community, nnd we should not talk' to glibly about bciug 'model employers.' I.could utulon-tanil it'. private eliiployor who paid for the privilege out of his own pocket desiring to b9 railed a model employer, but what are wo doing? It is true that wo as individuals will bo called upon to pay a portion of tho cost of. snoh a scheme, hut those who.will really,bo. compelled to pay for tho privilege will ho the producers and,. consumers over that territory fed by this harbour. Thoy may say; 'If that-is the caso who is going to do something for us?' Tho farm labourers and the small traders, —who will look after them in their old ago? I. agreo with national superannuation, tho fringe of which is started in a very improper way by old age pensions, National insurance?—] think there is no. finer ideal.' But starting piecemeal i? wrong. The man who is generous with other people's money is not fulfilling his trust. As reasonable men we are going as far as wo can in tho present provision for endowment policies for our men. They will not go out of our scrvico empty" handed. 1 don't object to. increasing the amount to bo given under that head, but a huge proposition, like this should b« taken very carefully." Ho stated also that ho thought that the average contribution of tho board would in the cud be jE3. r )OO per year. Ho was not prepared to oppose (he scheme outright, but _ ha thought that members should be given timo to consider before voting on the motion. Support for the Scheme. Mr. Baniell supported tho motion. Hβ believed that tho workers of the world' should get tho results of- the benefits of their labour, nnd should have provision made fur their old age. He suggested that tho board approve the scheme, aild appoint a committee to confer with the staff on the matter. Mr. Frecth_ said that the State had al. ready recognised its responsibility as an. employer, and tho mattor was ono that the board should consider. It was a question of proper responsibility and not generosity. He would prefer to have the scheme on a precise and stable financial basis, rather tlinu jiavc the board tak- / ing the money from the floating revenuo everv year, lie was absolutely in favour of tho scheme. Mr. Fitzgoruld believed in superannuation, and ho believed that the present system of superannuation should bo extended, in tho manner, suggested by Mr. Cohen. For tho purposo of protecting the State from tho indigent old, and protecting tho old from poverty, the labourer, and every class of worker, should ■ havo some opportunity of joining such a schomo as that enjoyed by tho civil ser.vants. Two Objectors. Mr. Jones said that personally he was in favour of superannuation schemes, but he would vote, against this one. It would not affect hte own pocket, but he did not propose to vote away any more money without getting tho consent of those whom ho represented. Mr. Harkness agreed that superannuation was good, but he was not sure from the report whether he could support tins present .scheme or not. Before entering on such scheme the board should havo some assured revenue coming in to meet tho payments •under it. He objected to the funds paid by tho board .being vested in tho Public Trustee, when the board could get one or ono nnd a half per cent, more interest; by placing the money elsewhere. And if it. was fonml, after a. series of years, Hint the fund was not solvent the. employees could not be called upon to pay moiv. The board would havo to pay all that w.is required to make it solvent. Ho thought; that; the lxiard, bolero deciding, should got thn opinion cf the employees on the schomo.

Mr. Towsley nnd Mr. M'Kwan tu|i< ported Hip proposal. The motion was carried without audible dissent.