SUPERANNUATION HARDSHIP.

Auckland Star, Volume LXIII, Issue 264, 7 November 1932, Page 6

SUPERANNUATION HARDSHIP.

Several of the recommendations of .the •commission, which reported on the Public Service superannuation problem and the corresponding proposals in the bill before Parliament exhibit obvious injustice. On the ground that post-war increases in salary did .not become effective until March 31, 1921, no reduction is proposed to annuitants of any . class who retired prior to that date, and no objection should be taken to that proposal. Those, however, who retired shortly after that date, even if only one day or within so short a period as to receive little or no benefit from post-war salary increases, aro to receive severe "cuts," 110 scaling being proposed for retirements shortly after March 31, 1921. Those who served full time in the service and those who retired owing to ill-health, shall, it is proposed, have their annuities recalculated on the basis, of their average salary during their last ten years' service, in lieu of their last three years as heretofore. This may represent in average "cut" of 15 per cent. The bitterest' pill, however, is received by those other annuitants "who retired before attaining the age of 65, or 40 years' service; such shall have their annuities recasl> actuarially, which in .most cases would represent, a "cut" of from 40 to 60 per cent. '(bus retirement in such case, even one day later than March 31, 1921, would entail a loss of perhaps half the existing annuity. It is proposed, however, . that no "cut" shall exceed 20 per cent, but even so, a 20 per cent <Vut" of a £200 tnnuity is a : greater hardshj) than a 40 per cent "cut": of a £500 annuity, the balance being £160 and £300 respectively. Possibly the best solution of the problem is by an all-round "cut" of 10 per cent on pensions exceeding, say, £150 per annum.. VIGILANTE.