PUBLIC SERVICE

Rotorua Morning Post, Volume 2, Issue 359, 21 October 1932, Page 5

PUBLIC SERVICE

(Press. Assn. —

statement by railwaymen ON SUBERANNUATION FUNDS GOVT. RESPONSIBILITY

By Telegrj-.ph — Cocy.rlght).

Wellington, Thursday. A statement in regard to the Superannuation Fund, issued on behalf of the Associated Society of Railway Servants by the president and general secretary, says that the fund is in no way responsible for the position of the adverse budgetary position of the country, and should not be brought under survey by the National Expenditure Commission. The economic and financial position of the country had been imjiroved by the fnnd taking over liabilities for compensation, old age and widows' 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 stahilise the finance of primary industries. Misleading The theoretical actuarial deficit was grossly misleading in their opinion The fttnd, apart from the fact that it was not founded on aii actuarial basis,.is in a no more perilous plight than any of the banks or many other institUtions, and the disclosure of such an exhggerated deficit in an atmosphere of panic creates a wrong psychology. Concerning the fund and its contributions,, the State came in as a. guai'antor of any possible deficiency, and by such guarantee for a cash cbntribution accumulated a debt for itself and loaded on to posterity a financial burden which altogetner distorts the position. Regarding the GoVernhient's respbnsibJiity to the fiind the, State, as employer, hayiilg failefi to inake jproper cqhtributions tb tlie f uiid f f ora . its inbeption, should nqw provide not oiliy foir the short pkymettts bf , past, but also interest theredn, of at least should increase the subsidy po make the income equal the expenditure for five years, whdii the peak load period of baclc servicd-.and ehrly retirements will he over, after which the k'cale of contributions would be ample to restore the financial stability of the fund.