SUPERANNUATION.

Hokitika Guardian, 4 October 1924, Page 2

SUPERANNUATION.

RAILWAY RETIREMENT POLICY. WELLINGTON, Oct. 2. Some interesting points were brought out in a discussion on superannuation which took place in the House to-day, when the Minister of Railways brought down the report of the superannuation fund of ti'ie Railway Department. Mr Yeitch asked the Minister what effect the recent change ot policy had had upon the fund. Civil servants had now to retire at sixty years of age. or after for tv years’ service. The retiremen of men after forty years’ service meant in many cases before sixty, and would cause serious depletion of the fund. Alen who retired early paid less in. hut drew more out of the fund. Mr Holland drew attention to the fact that some men were drawing superannuation running into lour figures, while others had not sufficient superannuation to live upon. Tie thought the whole system requireil revision.

Alt* Isitt: Does Air Holland suggest more repudiation? Air Holland: 1 had no idea of giving you an opportunity of making comments.

Air Isitt: Are we to understand the suggestion is that the whole situation should he reviewed in the recess and reduction made in the superannuation to which the Civil Servants were: entitled ?

Air Holland; 1 never suggested repudiation of any contract made. Air Jordan said fhaft a Civil Servant, who was a specialist, and who retired on supornimation, had taken a position with a firm in competition with the Government Department where he formerly worked. Air Glenn protested that. Air Jordan find m business with the movements of any retired Civil Servant. Air Smith agreed That the superannuation scheme required revision. The Alinister of Railways said that* since 1909 the maximum amount ot\ superannuation was £399, lint prior to Umt. lint*' it was based on salary paid. That was the reason several highly paid ollicers were retiring on larger sinus. A total of £130,186 was paid into the rnilwnv superannuation fund tliis year, which was about* £l-1.509 slant of actual payments. The Governmcul’.s coni rilnilion should he paid out. of rnilwnv earnings in future. lie thought it was better to retire men alter forty years’ service or at sixty, I,ut, a mini could remain on till sixtylive. Air Yeitch: The Department is retiring them at sixty. The Alinister: Thai: is a matter of Government pnliev for the time being. hut it is not laid down in the Act that they must* go at sixty. Speaking generally, it is a wise policy, to retire men after forty years’ service. Younger men had promotion before them as an incentive to good work*, and they helped to maintain the high level of the Department.