SUPERANNUATION.

Auckland Star, Volume LVX, Issue 268, 12 November 1934, Page 6

SUPERANNUATION.

In his letter in the "Star" of the Dth inst. "Universal Pensions" states (1) "The Government employees are agitating for a further grant from the public funds to place their superannuation funds on a sound basis"; and (2) "One man in one' and a half years received in the form of a pension more than he had. paid into the fund." The first statement is incorrect, and the second docs not fairly state the position. Re No. 1: The Government Actuary in the reports of 1012 and 1029 shows that these funds were established on a sound basis assuming a total subsidy from the State of less than 20/ for each fl contributed by members. This sound basis was broken down, not through insufficient contributions, not through too liberal benefits, but through the default bv the State in its subsidy as required by the Act, through appropriating members contributions for purposes expressly forbidden by the Act (resulting in members' contributions being, in effect,'used to swell surpluses), and, lastly, through serious maladministration of the funds by the State. This can all be irrefutably proved from State reports. Therefore there'is no "agitation by State employees for further grants," but the State has undertaken at last to make good the damage it alone has done to otherwise sound funds. The bill of 1933 proposed that members, after contributing about £10.000,000 to the States £15,500,000, 'should be compelled to make good about 80 per cent of the loss and damage unnecessarily done by the State to otherwisesound funds'. I fear that present space will not permit of dealing even as briefly as M possible with the other point in "Universal Pensions'" letter, but this will be done if a further opportunity- is afforded. JOHN CAUGHLEY.