SUPERANNUATION

Hokitika Guardian, 21 October 1932, Page 4

SUPERANNUATION

railavaymen’s ateavs; (Per Press Association— Copyright.} AVELLINGTON, October 20. A statement with regard to the Superannuation Fund, issued on behalf of the A.S.R.S., by the president and general secretary, says. The fund is i n no way responsible for the depression or adverse budgetary position of the country, and should not be brought under the survey by . the National Expenditure Commission. The economio and financial position of the) country has been improved by tl e fund taking over liabilities for compensations, old age, and widow’s pensions, which otherwise would have been a liability on the State. Moreover, had the fund been subsidised by the Government, as was originally intended,. the> accumulated funds would have been invested mainly in Government and approved! freehold security, which would have helped to stabilise the finances of primary industries. The theoretical actuarial deficit is. grossly misleading, in their opinion. The fund, apart from the fact that it was not founded on an actuarial basis, is in a now more perilous plight than, any of the banks, and many other institutions, and the disclosure of such an exaggerated deficit in an atmos* phere of panic created a wrong psychology concerning , the fund and ita contributors. The State came in as a guarantor of any possible deficiency, and, by substituting a guarantee for a, cash contribution, accumulated debt; fr r itself and loaded on to posterity a, financial burden, which altogether distorts the position.

• Regarding the Government’s responsibility to the fund, the State, as an employer having failed to make propper contributions to the fund from its inception, should now provide riot only for the short payments of the past, but also interest thereon, or at least should increase the. subsidy;- ■ to make the income equal to expenditure for five years-; when the peak-load period of bac-k service and early-re-tirementts will be over, after ; which the scale of contributions would be ample to restore the financial stabilityof the fund.