SUPERANNUATION FUNDS

Evening Post, Volume CXIV, Issue 91, 14 October 1932, Page 8

SUPERANNUATION FUNDS

Writing, of the.' National Expenditure Commission's report on the superannuation tunas Interested" claims that the report Jfi™«™ her,S is'"no such "deficiency" as That "represents the future liability in respect of future as wellag-pre-s?n£,.?™uAant?- "In afiy case the-amount of £23,000,000 has presumably been arrived' at on the assumption that there would be no payments into the funds, during the period reviewed. The chief recommenda™°n,Tnade m bjr the Commissioners as affecting officers is for the calculation of annuities on the' basis of the ' average salary of the last seven or > ten years, instead of three years as at present, and they state that this should be made retrospective and apply to those already drawing superannuation, as well as to those to retire m future. They claim that thif. would ensure uniformity of treatment, and an equitable distribution of. the sacrifice m the reconstruction scheme. This claim might be justified, but for the fact that tne Commissioners have made other recommendations that increase tremendously the value of the positions of those in the services. Whilst the policy of the Government for the past ten years has been, to force on to the. superannuation :unds all officers as soon as they reached 35 or at the longest 40 years' service, it is now proposed -to allow all male officers to remain until 60 years of age, and in some cases until 65 years of age. If these proposals are given effect to it will mean tnat officers m the Service will enjoy from nve-'-Jo ten years' service at high pay longer than those already on superannuationvwere permitted. The great majority of those who became dependent" on the superannuation funds were compelled to retire, generally much against theirswishes. The Commissioners refer to1 'the' right of members to retire,' but officers1 are more concerned-about their right to remain in the i Service. For future annuitants the disadvantage of the'altered basis.is fully offset by. the, privilege, of-, being allowed to retain their positions for a period from five,to ten years longer than:was permitted during the past decade. That part of the report in which the Commissioners recommend the removal of the arbitrary limit of. £300 by -ivay of annuity to those -who joined the Service after; 1909 will, amaze most people.. After drawing.a particularly gloomy report on the funds,', and after stating that the insolvency of the funds was partly due to'the fact that the conditions, of retirement had been liberalised from time _to_ time with disastrous results, the Commissioners recommend the abolitions of the chief safeguard; the limit. of £300. The reasons advanced are not convincing. It is that the. Service is detrimentally affected by the limit. "It would be' interesting to know on what evidence'this statement is made.", ''■-■ [The report certainly used the'"-'word /'deficiency*.' in -places, but-it was clear, and the words; were used, that this was "the. actuarial liability" in respect of the funds,- .based, we assume, on the. actuarial reports placed: before- the Commission.— Ed.] ■;:■■ .-■■■',•; \:\, ':./,o:y\\':--- .'.•• ■ "

On the same subject '^Bar One" protests against the repudiation of-debts and breach of. contract involved in giving effect to the recommendations, "The -arbitrary reduction of interest Jlwaß-the. first step downwards.. Now cpmes '.the; threat of reduced superannuation. It is only a stepl further to appropriate the funds of the Government Life/Insurance, the Public Trust, for; even the Savings Bank. One would think that a rigid- adherence: to;contraets, l.and a further reduction' of 'needless expendituve wouldv restore confidence in a. more way. AU classes are stand(ingrup'tcthe strain, and," v except: for a few gi*ousers,Vare willing still to stand up to it. To ask-old-men and women who have faithfully; performed their part of a con- | tract itoibear a; /disproportionate burden ■is not justifiable." '