The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo. MONDAY OCTOBER 23, 1905. MUNICIPAL SUPERANNUATION.

Auckland Star, Volume XXXVI, Issue 253, 23 October 1905, Page 4

The Auckland Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News and The Echo.

MONDAY OCTOBER 23, 1905. MUNICIPAL SUPERANNUATION.

For the cmtue that lacks atßifttntm, For the icrong that needs reauteaoa, Fir tht fuUre in the dittanc*. And the pood that van cmn do.

Last week there was held in Wellington a meeting of the committee of the Municipal Associations of New 7 Zealand, at which the principal subject of discussion was the practicability of a scheme of superannuation for the benefit of municipal employees. The secretary of the Association, with commendable energy, had gathered together a large number of figures showing the ages and salaries of the employees of seventy-three affiliated Borough Councils; and he had also compiled particulars of several superannuation schemes now in force at Home and in this colony. The members of the Association are evidently very much in earnest about the promotion of a similar scheme on behalf of municipal employees; and if Parliament passes the bill notv drafted for the incorporation of the Association, we may expect that legislation Will follow next session in the required direction. The summary of the nature and position of existing superannuation schemes compiled by the secretary of the Association supplies some very interesting facts, with which the general public are not so familiar as they should be. The Government Railways Superannuation Act, as well as the Teachers' and Harbour Board Employees' Superannuation Bills, already drafted, make special pro Vision for the needs of old employees. So, top, do the police and Bank of New Zealand- superannuation schemes, though Ihe oldest empi-'./ees contribute on a larger scale than the younger ones. In the Government railways scheme, for instance, existing employees, though commencing to contribute at time of joining the fund arc nevertheless entitled to, pensions fixed with reference to all their years of service. Some such provision as this appears to find favour with the Municipal Association, though it is likely that the scheme finally adopted will combine some of the more important features of the municipal superannuation

eystens in fence in London and Man* Chester. The Manchester Council scheme Arranges that 8d in.every £ pf an employee's salary shall be set aside, that 3d shall be added by the Council, that this 1/ in the £ shall be invested, and that the accumulated amount shall b* handed to the employee on retirement. The Council guarantees four per cent, per annum interest, «nd is liable for any deficiency. A similar scheme is being worked by the London County Council; but the London employee contributes only 6<l in the £, while the Council gives Cd in the £, allows interest at three per cent., and ultimately: makes up any deficiency. It should not be. difficult to draft a scheme which, by taking advantage of the experience already accumulated in this colony and in England, should make reasonable provision for public employees, while guarding the municipal authorities against any serious loss. . • ■ •

With Bpecial reference to the position of municipal employees in New Zealand, the figures submitted to the association supply some useful information. There are 413 officers in the employ of the 73 affiliated .Borough Couqcila, representing about three-fourths of the municipalities in the colony. The average age <jf these officials is about 421 years—in itself a very significant fact; and the average salary is £160. There are only 94 out of these 413 employees receiving as much as £200 a year, and only 11 receive as much as £400 a year. Over 300 employees thus get less than £200 a year; and as the average age is over 40 years, it should be clear that the prospects of the great majority of them are by no means satisfactory so far a? their hope of providing for the needs of old age is concerned. Already 129 tef these employees are over 50 years of age, and 54 of them are 60 years old of more. Under the circumstances we can well understand the interest that municipal employees are taking in the proposal for a regular scheme of retiring allowances. The principle which has been held to justify the establishment of the police and railways pension funds, and which is now being illustrated in the draft schemes prepared for Harbour Board employees and teachers, should certainly apply to all public servants whatever be the nature of their duties. The municipal employees of the colony perform arduous and indispensable public work, and it is only just that all due encouragement should be offered them to provide for the later years of life. At the same time* it will he necessary to take careful precaution against the risk of incurring heavy pecuniary liabilities on the public account. We have yet to see how the various superannuation funds already guaranteed by the Government or by public bodies are to work out; and for the sake of the fatepayer, it will be well to guard against any heavy increase- of our municipal burdens even for so praiseworthy a purpose as this. But there is no reason why our own municipal authorities should not be able to administer such a scheme as successfully as either town and bprqugh corporations or private institutions at Home and in the colonies.