SUPERANNUATION.

Dominion, Volume 7, Issue 1937, 20 December 1913, Page 5

SUPERANNUATION.

♦ AN ACTUARY ON ITS BENEFITS. Concluding his report on an actuarial investigation into the financial position of the Government Railways Superannuation Fund, Mr. Morris I'"ox (Government Life Insurance Actuary) says: — "Of this Dominion in particular it may bo said that a sound and efficient form of superannuation should bo regarded as a factor essential to tho successful evolution of its Public Service system. That tho employees _ benefit very largely by such a sehemo is undeniable, but it may bo shown conclusively that their employers, the public, also reap inestimablo benefits which are not so clearly recognisable. Ono of tho smallest of those benefits is that the Government is saved the direct payment of large sums of money in. some other form ; tho inauguration of tho Public Servico Fund, for instance, caused tho cessation of yearly payments by way 'of compensation and gratuities amounting to more than tho subsidies which liavo been granted to tho fund. But in addition to this there result two most important benefits to tho State which it is not possible to estimate in money: (1) Tho existence of such a fund lias a strong tendency to bind its younger employees to the service of tho State, for it is reasonably certain they will not lightly leave thoir employment to seek advancement elsewhere when they consider what valuablo future benefits tliey must forgo bv doing so: (2) tho Government is relieved from tho payment of salaries to a number of its older employees who have outlived their efficiency, and a superannuation fund affords a convenient and legitimate means by which their removal from the Service can bo effected without undeserved stigma or undue hardship. It is not too much to assumo that, in the absence of such a fund, many praiseworthy old Public Servants would 'remain longer than they should do in tho Sorvice, drawing annual salaries from tho Treasurv, and blocking promotion which it is desirable should bo given. Indeed, rmoting from a sourco which I cannot for tho moment trace, 'superannuation funds soundly constituted and well administered, by securing tho retirement of employees at an ago when their capabilities aro waning, supply an admirable aid by which the management of a. country's concerns can be maintained with a maximum of efficiency.' "