SUPERANNUATION FUNDS

Auckland Star, Volume LX, Issue 181, 2 August 1929, Page 9

SUPERANNUATION FUNDS

IN FINANCIAL MORASS.

INQUIRY TO BE MADE. NO SALARY ADJUSTMENTS. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. "The financial position of the Public Service, Railways, and Teachers' superannuation funds is even worse than I had thought," said the Prime Minister, Sir Joseph Ward, in his Budget speech. Sir Joseph said there was a cash shortage of over £2,000,000 on account of current pensions alone. This was due to the neglect in the past to pay the State subsidies. " The position has been further accentuated by a mistaken policy of early retirements and other concessions granted, apparently without due consideration as to their effect on the superannuation funds," Sir Joseph said. "It is certain that a change must be made in the policy of automatic early retirement now operating. "As a matter of fact, the position of these funds is such that it is a question whether a radical change in the whole basis will not be necessary. ... I propose to set up an inquiry as soon as possible to investigate the position thoroughly and report to the Government on the state of the funds, and generally as to what should be done to place superannuation for public servants on a satisfactory footing. "In addition to these matters affecting Government employees, I have also under consideration requests regarding salary adjustments involving heavy lia° bilities. The superannuation question, however, is, in my opinion, first in importance, and until the Government can see a clearing up of the requirements in this connection I find myself unable, in view of the financial position generally, to take any action In the direction of adjusting salaries, other than is brought about by promotion and regrading under the law."