MUNICIPAL SUPERANNUATION.

Auckland Star, Volume XXXVIII, Issue 136, 8 June 1907, Page 7

MUNICIPAL SUPERANNUATION.

I THE SCHEME EXPLAINED. I (By Telegraph.—Press Association.) I WELLINGTON, Friday. Iv connection with the municipal superannuation proposals, tbe following is th< % j text of a memorandum on the scheme [from Mr. J. T. Martin, the secretary of the Municipal A-soeiation: — 1. Mr Leslie framed his scheme on the principle that tbe fund is io be self-sup-I porting. It provides that each employee | shall receive a pension of a sixtiir:!! . ■' r : the total salary paid to him riurbi_ all I ] the years ot his contribution to the fnud until reaching ihe age of 65. i I 2. The rate of interest is taken at four t per ce-nt. j

3. The scheme does not provide for the return to employees or their families of any part of their contributions in the event of secession ur withdrawal before the ascot cr,.

4. Tbe tables show that a youth entering an otlice staff ut the age of 15 would, by paying the amount of £1 per annum to ibe fund up to the age c.C (Jo, secure a pension of _•__ 17..rj; that if by the time he reached ibe age of 2.". his salary had been increased to such an extent as to enable him to afford to pay an additional ii per .-tnnnm to the fund, this additional payment made, up to the age of tr,. would sec,ire hin: a further pension of £17 0/3. •;r a total p-nsion c.r _\5 ISA; that if at ■'■•> he e-ouid pay a further £1 per ajinnni he couM secure a further pension or £3 i/.11. or a total pension of £55 G/: and that if at 15 he were to pay .1 furfh-r £1 per annum ihU' would buy him 1111 additional pension ..f £4 Il,y „r a total pensum ai li. 0 f _ryj 17/!>. By multiplying any of those animal contributions of _i by any figure, the pension would be multiplied by the same- figure.

5. Table VH. gives the contributions per cent of salary for the time being received by an e-mployee necessary 10 secure to him .-it C sa, pension in sixtieths of the total snlary assumed to ha\ c been received by him. A.-eo.-dhig to the scale of salaries hithcno paid, this table shows* rbat nn employee joining ihe fund at 15 would have contributed £3 33/2 per cent per annum of his salary, one joining at 25 f-i P"2 per <-e_t per annum, and 'one joining at 52 £y 1/10 per annum. The scheme coes nci provide for a minimum pensiou, as is eio.ie under the teachers' scheme. '*. The table shows that, an increased amount would lie contributed if the scheme were to provide fo- the return of contributions at death before 65. Separate taboos are siven throughout for the case of permanent workmen. The percentaires for 'he>se employees at 15. 27. and 52. respectively, are £:i :;/10. £4 3/2. and fit 8/, .\s against the percentages for the other kind oi employees above quoted.

i. The actuary draw.-- aUeution to the fan oi the sui.-illness ~f the pensions that would he rieleled when employees were admitted into the s.-hemo ar the higher v. s. He adds: •'Sin-h a scale of pensions cannot br regarded as making any adequate or sufficient provision for such officers, anil the question of restricting the aire e.f entry is deserving of most careful ce.n_lilrro.tion.''

S. Hie scheme contains no provision for 'back service of an employee prior to his joining Ihe scheme. To provide sixtieths of. salary for members of office staffs and for permanent workmen, a total of £80.783 would be required. If one hundred and a twentieth only were provided for back sen-ice the amount required would be

f. The scheme centre iris no provision for employees ... either kiml who are already over the a-_-o ~f cr.. ji r Leslie estimate's that to provide .sixtieths cf salary _r? wares in these e-nses would necessitate th" finding ot the sum of i_„7.Hl_. and that as a large number of |be\sc employees would come- at once upon the fund the immediate ntinual e-har._ would ~_ .-,;.,.. it £T.OOO an.l C'.w if one hundred and twentieth only wete allowed.