SUPERANNUATION SCHEME

Gisborne Times, Volume XXVI, Issue 2311, 2 October 1908, Page 2

SUPERANNUATION SCHEME

THE GOVERNMENT’S NEW BILL.

POLICE, TEACHERS, AND CIVIL SERVANTS. [Speoiau to “Times.”] WELLINGTON, Oct. 1. In the early hours of yesterday morning a lengthy and' comprehensive measure regarding a superannuation scheme for the public service was introduced in tbc House of Representatives. The object of tlio Bill is fourfold— to substitute in place of the present superannuation scheme for the education service a. scheme which is, so far as practicable, the same as that established for the public service ; to place the police force in the same position as the rest of the public service in respect to superannuation ; to make certain miscellaneous amendments in the superannuation scheme for the public service; to make certain provisions respecting broken time in the service. TEACHERS’ S UPERANNU ATION. The differences between the education service and the public service are such that it is now practicable to include them in the same scheme oi superannuation. The Bill therefore preserves the separate existence or the Teachers Superannuation Board. Part I. contains all the provisions applicable l to teachers’ superannuation. These provisions are essentially the same as those established by the Public Service Act, 1897, but there are numerous minor variations necessitated by the sjiecial conditions or the education service. Every exesing contributor to the teachers superannuation fluid conics automatically within the scope of tlie new soli cm ■ unless within six months lie elects V 1 remain subject to the old Act. ihe retiring allowance for contributors is based on their final salary during the period of their service. Existing contributors will count the whole of their hack service instead of only one-halt of it, as at present. An annual subsidy of £7OOO is provided for the teachers’ superannuation fund, corresponding to the subsidy of £20,000 provided by the Act if 1907 tor the public service superannuation fund. POLICE FORCE. The-police provident fund is abolished, and all its assets and liabilities are transferred to. tlio public service suDerannuatioii fund. The police provident fund board is abolished, and all its powers are transferred to the public service supcra n n uallon board. Olio additional member is added to the latter board, to be elected by contributors belonging to the police department. All persons hereafter appointed to the police force are to become contributors to the public service superannuation fund on the same terms as other public servants. All existing contributors to the police provident fund become, on the passing of the Act, contributors to the public service superannuation fund on the same terms as other public servants, save that within six months of the passing of the Act any such contributor may elect to remain subject to the existing provisions governing police superannuation. The police who do join the public service superannuation fund are to be deemed original contributors-, that is to say, they count the whole period of their back service and tlieir contributions are determined by the ago of the contributor when he first joined the police provident fund. The special allowance to police officers iff tlieir duty is retained, and the Government subsidy of £20,000 per annum provided for in last year’s Act is increased by £3OOO to meet tlie additional expenditure imposed on the fund by the inclusion of tlie police force. Sections 15 and 16 of the Public Service Glassification Act 1907.• provided that all temporary officers already appointed should, after five years’ service, become permanent, and that no temporary appointment made after the passing of that Act should continue for more than six months. These provisions do? not apply to officers in the Post and Telegraph Department, and this Bill now makes the same provision as to them. RETIREMENTS. Clause 55 makes it clear that any contributor who attains tlie required age, or length of service, is entitled to a retiring allowance, whether lie retires voluntarily or compulsorily. This is presumably the effect of the Act as it stands, but it is thought advisable to make tlie provision expressly. Clause 56 is intended to guard against the possibility of a- contributor drawing a retiring allowance on the ground that he is medically unfit for the position which he has hitherto occupied, although he is perfectly fit for some other suitable position which is offered to liim in tlie public service. Clause 57 gives power to the 7 board to determine the rate of contribution payable by a contributor who is re-appointed to the public service after retirement. REFUNDS WITH INTEREST.

. Attention lias been called, since the passing of the Superannuation Act, to the fact that there are certain classes of officers (e.g., members of the defence force, attendants in mental hospitals, etc.), the conditions of whose service are such that they will in all probability have to retire compulsorily before earning a retiring allowance by ago or length of service. It is considered hard that such officers should receive nothing' more than a. refund of their contributions without interest. It is provided, in consequence, that in case of compulsory retirement not due to misconduct, interest on contributions shall be payable. Clause 58 makes amended provisions for the difficulty raised by the transference of an officer from a service governed by one superannuation scheme to a. service governed by another. The present law is that suclf an officer remains a contributor to the fund which ho originally joined, butthis arrangement will probably be found to cause grave practical difficulties. CONTINUOUS SERVICE.

By the present law only continuous service can be counted towards a retiring allowanco.Exporienco has shown however, that this rigid rule works, considerable hardship owing to the existence of accidental or very brief intervals in tlio continuity of an officer’s service. For example, on the transfer of an officer from one position to another, there may be an interval of a day between bis retirement from the one position and his appointment to the other. Clauses 61 and 62 contain an attempt to avoid hardships of this kind, while maintaining the spirit of the nrinciple that service must be continuous. Clause 62 makes provision for the difficulties created by the position of those temporary officers who, by virtue of section 15 of the Public Service Classification Act, 1907, become permanent officers in consequence of five years’ temporary employment. The clause provides that all such officers who hereafter complete, or who have already completed, their term of five years after the commencement of tile Public Service Classification Act, 1907, shall be contributors to the fund and shall be entitled to count their period of service prior to the commencement of the Public Service Classification Act just as original contributors do. RAILWAY-MEN’S BROKEN TIME. In 1890, during the progress of the maritime strike, a number of railwaymen struck work in sympathy with the strikers, and subjected themselves to considerable hardship so far as their superannuation allowances are concerned, because their action resulted in losing the benefit of all previous service in the department in counting for superannuation. However, the new Bill provides that upon payment to the Government railways superannuation fund of £ISOO the broken time and preceding continuous time will be allowed to count. A ballot of members of the Amalgamated Society of railway servants is now being taken upon the advisability of paying £ISOO to the fund 1 as proposed by tlie Bill. The measure also fays down general provisions for counting broken service in the railway department if the break occurred prior to the passing of the principal Act in 1902, or the said break or interval has not exceeded one year in duration, and if no pension or compensation has been received by the contributor in respect of liis preceding period of service. The oou-

tnbutor may, if he elects to do so, pay into the Government , railways superannuation within six months after tlio commencement of this Act a sum equal to the total contributions which would become payable by him into that fund during a period of live years from the commencement of this Act if lie continued during that period to receive the same pay as that received iy him at the commencement of this Act. If, ill the case of any contributor, two or more of sucli breaks or intervals have occurred on bis employment, tlie foregoing jnovisions shall apply to the latest of those breaks or intervals only.