SUPERANNUATION

Rotorua Morning Post, Volume 2, Issue 360, 22 October 1932, Page 5

SUPERANNUATION

("Post" Special Commissioner).

BILL INTRODUCED NEW MEASURE CONTAINS SOME DRASTIC CHANGES RETIREMENT AGES

• 5 Wellington, Friday. One ,of the most important measures of the session amending the Superannuation Bill will definitely be introdu'ced in the House next Tuesday. This announcement was made hy Mr. Forbes to-night. Provision will be made in the BiH- for the overhaul of the superannuation system along the lines recommended hy the National Expenditure Gommission. •The principal ehanges concern retirling ages and the basis of computation of superannuation. Men will - have the right to retire at 65 years ; of age, but will not be able to retire | after 40 years service unless they } have reached the age of 60. At the | present time a man is permitted to | retire on full superannuation after I 40 years' service. ! For women the retiring age will he ! 60, although they will have the right i to retire at the age of 55. If at that time they have completed 35 years service the superannuation payments will he assessed on the avera'ge ' salary over the ten years prior to retirement instead of three yekrs as at present. This arrangement will also he made retrospeetive to 1921, with the result that all who have retired from the public service within the last decade will have their allowances readjusted. In some cases this will mean a eonsiderable reduction, for it is well known that in at least one department the practiee prevailed a few years ago of giving senior officers, who were within three years of the retiring age, substantial increases in salary in order to increase their superannuation allowance. As drastic reduetions would, in many cases follow the calculation of the present annuities on an aeturial basis it is expected that arrangements will be made to ensure that no reduction exceeds 20 per cent. In this connection provision is expected to be made for the appointment of an undue hardship tribunal, or some other body. According to the commission's report the reason why no alteration is suggested regarding the annuities granted before March 31, 1921, is that officers who retired prior to that date did not get the benefit of the post war rise in salaries and their allowances are on a relatively lower scale. The Bill, following its introduction, will be referred to a special select committee, which will hear evidence on the measure and report its findings to the House.