STATE SUPERANNUATION

Otago Daily Times, Issue 26619, 15 November 1947, Page 8

STATE SUPERANNUATION

Government Contribution to Meet Commitments LARGE SUM NEEDED ANNUALLY Parliamentary Reporter WELLINGTON, Nov. 14. The possibility of a Government contribution of at least £2,000,000 being necessary each year for the State Superannuation Fund was mentioned by the Minister of Finance, Mr Nash, in moving the second reading of the Superannuation Bill in the House of Representatives to-day. He said that actuarially it was at present £20,000,000 short of the sum required to meet all commitments. It was proposed to make an amortisation payment over a period to mqke up the deficiency, though this would take 50 years. > Amendments to the Bill were announced by the Minister, who said that one of them would provide for the training college period of teachers to be taken into account for superannuation purposes. Another would give the right to contribute to the fund at 17 years of age instead of at 20, and the right would be given to retire at 58 with the consent of the Superannuation Board, which must take into account the circumstances of the particular employment.

The Minister said the Bill consolidated the legislative provisions which had been dispersed in Acts of Parliament over the last 40 years, but in particular over the last 20 years. The number of persons who would be affected by the Bill would be 56,400, comprising 18,000 public servants, 14,000 railway employees, * 11,000 teachers, 12,000 Post and Telegraph employees, and 1400 members of the Police Force. There were also 9000 annuitants involved and 1400 widows receiving benefits. The aggregate contributions to the fund were £1,050,000, and the retiring allowances slightly in excess of £2,000,000. An endeavour had ieen * made to arrive at uniformity and to remove the various anomalies between different contributing branches of the public service. The provisions of the Bill had been discussed with representatives of the organisations concerned, and they were in agreement with the Bill. Mr G. H. Mackley (Oppn., Wairarapa): Unanimous? Mr Nash: Yes, with the amendments 1 have mentioned. The Minister said he hoped the Bin would be found satisfactory to all concerned. It aimed at removing injustices, while ensuring that the fund would not be unfairly exploited. Some thought had been - ! ' 7 er. to the abolition of the fund, but it hac’ been decided to ensure that there was paid into the fund every year at least a sum equal to the added cost. The use of the existing contributors funds to pay the benefits had been going on 'since 1909, and actually £4,500,000 had been paid out of such contributions. Steps were being taken to put the matter in order. , Actuarially the fund was at present £20,000,000 short of the stun required to meet all commitments. Contributors’ funds, however, would never again be used. Already . this year £542,000 from the main Estimates and £1,150,000 from the Supplementary Estimates had gone to the fund, but 5 it was estimated that the sum required this year to meet the State’s proportion of retiring allowances was £1,800,000. It, therefore, looked as ii there was going to be an item on the Estimates each wear of at least £2,000,000 to pay into the superannuation funds. '