SUPERANNUATION

Evening Post, Volume CXIV, Issue 125, 23 November 1932, Page 8

SUPERANNUATION

SECONDARY TEACHERS

COMMITTEE'S INQUIRY

HARBOUR BOARD STAFF

Further protests on behalf of teachers against the proposals of the Government Superannuation Funds Bill wore made to-day to the Select Committee of the House of Bepresentatives. Representations were made by the Secondary Schools' Association of New Zealand and the New Zealand Women. Teachers' Association. The Wellington Harbour Board made an appeal to the Committee for the removal of the £300 limit of retiring allowance as far as its own superannution scheme is concerned.

In placing the Secondary Schools' Association's case before the Committee, Mr. P. Martin-Smith made the-follow-ing submissions:—

"(1) The state of the Teachers' Superannuation Fund is due almost entirely to default on the part of the State, and the State should in any readjustment that is necessary bear its full share.

"(2) The fund has admittedly not been established or administered on an actuarial!/ sound basis, and the teachers' superannuation scheme has now been in operation for a considerable time. While ideally it may be right and proper to put the fund on a sound actuarial basis, we ask whether in view of all circumstances, and especially our faith in the integrity of the Government, this is in practice necessary or desirable.

"(3) There is a special case to be niade out for secondary teachers in that (a) their work is of an especially .arduous and exacting nature and so their age of retirement should not be raised,; (b) they join the fund at a comparatively late age, (c) there are no sudden promotions on the eve of retirement, (d) they contribute a minimum of 5 per cent, on their salaries. ■

"(4) The secondary teachers have placed full confidence in the State guarantee.

"(5) Proposals on which the secondary teachers are willing to compromise, provided that the State fulfils its obligations in full and continues for all time its £ for £ subsidy, and providing that the right of election to pay in on the salaries before or after the salary cuts is reopened: (a) The computation of the retiring allowance on the last five years of service, (b) the removal of the £300 bar, (c) the right to retire at a comparatively early age, (d) the placing of early voluntary retirements on an actuarially computed retiring allowance. "(6) Proposals to which the secondary teachers are radically opposed: (a) The raising of the retiring age of men to 65 and of women to 60,-(b)-the computation of the' retiring allowance on the last. 10 years of service. . "In order to dispel any Idea, "that the retiring allowances of teachers is large, it may be as well to quote the following figures showing the average annuities payable to those in receipt of over £300 from the various funds-— Public Service Superannuation Fund, v 41?" Si ,„ Railways Superannuation ifund, £40/.5; Teachers' Superannuation Fund, £386.4. -The: total average pensions for teachers is in the vicinity of £175. , REMOVAL OF £300 LIMIT. _ Evidence was given by Mr. A G Barnett, secretary of the Wellington Harbour Board, in an appeal by the board and contributors to its super--01- fund for the Temoval of the £3°o limit of retiring allowance. JNo subsidy was obtained from the Government as in the case of local body funds^ established under . the National Provident Fund Act, but the board agreed to add to every £100 of employees' contributions the sum of *6 ,he said- "This "subsidy was added fortnight by fortnight to the employees' contributions' and in accordance- with *he Act,- paid into the Public Trustee and became interestbearing. While the fund was being established it was found that there was a technical defect in one of the clauses dealing with early service, and this delayed putting the fund into operation. For the purpose of remedyVt S -tnll weakuess an amendment to the 1908 Act was introduced at the request of the board, but in the last hours of the session, in the Legislative Council, a' new clause was added without tho board's knowledge limiting the retiring allowance to £300. The fund i otv :irJ. to °Penition. on tie Ist April, iyi3. The last triennial investigation by the Government actuary shows that the Wellington Harbour Board superannuation fund is in a satisfactory condition, and he further advises that the fund is capable of meeting the retiring allowances specified in the 1908 Act. '

The disability of certain employees in regard to retiring allowance and the payment of excess contributions by contributors is being accentuated year by year, and, as the common justice of the board's appeal has been acknowledged on the many , occasions it has approached the Government on the matter, it now asks that legislation be enacted either in the form of a simple repeal of section 3 of the Local Authorities Superannuation Act, 1912, or by a permissive clause in an armropriate Act.