SUPERANNUATION FUNDS.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 6

SUPERANNUATION FUNDS.

Your correspondent "Economy," while arguing on what he evidently believes sound lines, does not appear to have full knowledge of the original Superannuation Act. Permit me to quote section 26 thereof, which reads: "26. The rights and ■benefits provided for by this part of this Act shall be subject to all such modification as may be provided by any Act hereafter passed in amendment or repeal of this Act; provided that all benefits under this Act shall be conferred upon any person who has actually contributed and shall remain in force, and shall not be prejudicially affected by the amendment or repeal of this Act. . . ."In 1909 an amending Act provided that future contributors would on retirement be limited to a pension of £300 per' annum. However, the Economy Commission, while recommending drastic "cuts" and other alterations, coolly suggested that this limit be' cut out! However, to revert to section 26, surely this' 'is plain and emphatic and is sufficient evidence to any honest person of the contract made hy the Government with its servants. When moving the second reading of \he Railways Superannuation Bill the Minister (the Hon. Sir Joseph Ward), referring to the insolvency of the New South Wales superannuation fund, said: "I hope the scheme there will not he raised in judging the proposals in this bill. The whole of the causes of the breaking down of that s3 T stem have been safeguarded against in this scheme, and could not occur in this country. The fault occurred when the great sweep of retrenchment in the Public Service of New South Wales took place. . . . There they decided to retire a large number from the Government Service, and how did they retire many of them? By throwing them on the pension fund of the colony, which is intended to be used only .for men who were too old and infirm for the work which under ordinary circumstances they were called upon to perform. ... No country should attempt to use a pension fund in the manner that New South Wales did." No doubt the Minister's assurance induced civil servants to surrender their rights under the then existing condition respecting compensation. This provided for payment of a lump sum on retirement equal to one month's salary for each year of service, Thus the Government was relieved of a large liability, an aspect of the case which I have not seen touched on in correspondence. SUPERANNUITANT.