THE PUBLIC SERVICE.

Ashburton Guardian, Volume XLVI, Issue 10685, 31 December 1925, Page 3

THE PUBLIC SERVICE.

RAILWAY RETIREMENTS. BURDEN OF SUPERANNUATION (Per Press Association.) WELLINGTON, December 30.

In consequence of the announcement ttat a large number of civil servants will be retired presently, the Public Service Association has written to the Commissioner pressing that all officers of 65 years should be retired irrespective of length of service, and that all others completing 40 yeairs' service provided they are 60 years of age. On the other hand, it appears that present conditions are pressing too heavily on the superannuation fund. The official report to the Superannuation Board states that the heavy strain on the funds, due to the recent numerous retirements of comparatively young contributors, can be relieved only by a substantial increase in the statutory subsidy. The fund stands at 2£ millions, and tiie interest earned has increased to nearly six per cent. Still, it is far from enough, the report says. Officials are alarmed at the advantages taken by the Department of recent modifications of the Act, and it specially stresses the retirement of contributors at 40 years' service or less. In many cases they are 10 or 11 years short of 65, and their retirement causes loss of contributions never allowed for. The original calculations were based on the assumption that few retirements would take place under the ago of 65. The result is that an actuary is investigating the position ,and he will report to the Government the amount of extra, subsidy required to make good the deficiency.