RAILWAY PENSION

Hokitika Guardian, 27 October 1933, Page 8

RAILWAY PENSION

THE SUPERANNUATION FUND INVESTMENT OF SURPLUS : WELLINGTON, October 25. The position of the. Government Railway Superannuation Fund, and the nature of the securities in which the Accumulated Fund had been invested, were discussed at a full meeting of the executive committee of the Railway Superannuitants’ Association in Wellington last week. The association's statistician presented a comprehensive review of the fund, which showed that coinciding with the policy of early retirements first instituted fn 1924, the drain on the fund then commenced, and continued steadily until 1932, when the peak load was reached owing to the abnormal number of early retirements. It was forecast, however, that with a return to more settled economic conditions, and in the absence of any further unjustifiable liability being incurred, the fund should rehabilitate itself within a few years. The average of all tlve life allowances now being paid out was £IBO a year. From 1903 until 1911 the fund had received no financial assistance apart from members’ contributions. Attention was drawn to the fact that iii 1902, during the early negotiations it was urged that the fund should be given a iest, say, for four years, with the idea of then establishing a reserve fund. There were then in the employ of the department, however, a fair number of men who were long past the retiring age. These men had joined the department during the early development of the railway system, and some tof them had served with jtlie British forces in the Maori War. The question of providing for them arose; and Sir Joseph Ward decided that they should be retired on superannuation after paying contributions to the fund for a very short period only. He considered, moreover, that these men had earned, by their war service and by their continuance at duty after the usual age, some reward in addition, and the Government even assisted toward theft contributions to the fund for that short period to enable them to become beneficiaßee. The original proposal was that the State should contribute a sum equal to that subscribed by the contributors The basis was subsequently altered, and the Government guaranteed the fund, instead of paying a contribution each year. Provision for this was now embodied . in; the - Government Act; ft was ; evident" that the amount contributed by the State was far short of the contribution of- the employees It was stated that the surplus funds, placed with the Public Trustee for investment, now amount to £1,330,000. An investigation was decided upon, and as ; fi' preliminary it was decided to obtain ’information to enable this to be carried out.