UNCERTAINTY.

Auckland Star, Volume LXIX, Issue 101, 2 May 1938, Page 13

UNCERTAINTY.

FUTURE POLICY. PRIVATE PENSIONS PLANS. FEELING AGAINST MINISTRY. Considerable uncertainty exists in those firms which have (superannuation funds as to the best policy to adopt in the light of recent legislative proposals. Many such lirms have pet their position out before the Parliamentary Committee at present taking evidence in regard to the Government's .pension and health .scheme, while others have refrained from doing anything definite until the Government plan emerges more eleariy. Nearly all private firms are reticent in the matter, though where a definite opinion has been arrived at after a joint discussion with the trustees of a fund and the contributors the opinion is nearly always in favour of being left out of the social security plan. Acting on the instruction of the president of the Municipal Association, the secretary, Mr. A. Knton Hurley, has investigated the attitude of those members of local bodies who are contributors to a fund. He prepared a questionnaire which has been circulated to those local bodies that are members of the association. The information derived from the circular he used as evidence before the Parliamentary Committee. Aft far as the Auckland City Council ie concerned, the contributors to the superannuation fund it runs in conjunction with the National Provident Fund are definitely adverse to being drawn into the Government scheme. Of the 251 contributors to its scheme, the questionnaire prepared by Mr. Hurley was submitted to 207, of whom 189 answered in favour of being left out of the Government scheme. Crux of the Matter. The two questions in the memorandum which are considered to contain the crux of the matter are as under: — (1) Do your employees prefer to continue under such scheme (as already exists in a given local body), and if possible be left out of a social security plan? (2) Do your employees favour the Government scheme, either (a) as an addition to the existing scheme or (l>) as sufficient in itself?

The staff of the Auckland City Council replied overwhelmingly in favour of their own scheme. It was explained that under their own scheme the contributors would gain more than by participating in the national plan. Deductions made at present were 4 per cent of salaries up to the age of 30, and 5 per cent between 30 and 35. Contributions were subsidised by the council, and assured a pension of a maximum amount of £300 a year. That was paid after 40 years" service, or when the age of 00 had been rrached in the case of'a female worker, and (>."> in the case of a male worker.