NO ABOLITION.

Auckland Star, Volume LXIX, Issue 207, 2 September 1938, Page 8

NO ABOLITION.

PENSIONS FUND. CASE OF CIVIL SERVANTS. MINISTER'S ASSURANCE. (By Telegraph.—Parliamentary ileporter.) WELLINGTON, this day. An assurance was given by the Minister of Finance in the House of Representatives tliis morning that the Gov- J ernnient did not intend abolishing the public service superannuation fund. This was in reply to Mr. J. G. Coates (National, Kaipara), when the estimates of the fund's account were under consideration. The Leader of the Opposition, Mr. Adam Hamilton, said it appeared that for the year just completed the fund was in credit to the extent of £100.000. He considered that the outgoings would never be heavier. The Minister: Where does it say that? The outgoings will grow as the years pass. Mr. Hamilton: Income too. Air. Nash: Not necessarily. Mr. Hamilton: That is the view of a reliable authority. Mr. Coatee said the public servants desired to see the fund retained. Mr. Nash said the committee had examined tlie public service, teachers' and railway superannuation funds a year or two ago, and it was found that a sum of £30,000,000 was required to place them in a sound financial position. If effect was given to that recommendation the Government would have to find that amount in securities. No one would suggest that the Government should do that. There f re, the superannuation account could not be actuarilly sound. It was financially sound, however, because the State stood behind the fund. The suggestion by Mr. Hamilton was that income and expenditure at peak would not bear examination, added Mr. Nash. Mr. Hamilton: An authority savs so. Mr. Nash said the argument was weak. There would be a tremendous drain on the fund, and when the peak of outgoings was reached there would be a much larger contribution by the iState. The Government had already made a statement to the effect that after the Social Security bill was passed, it would give attention to the removal of anomalies in public service superannuation schemes. Mr. J. Hardest (National, Awarua): What anomalies? Mr. Nash said it would take some time to explain. He did not propose to go into that phase now, other than to sav there were anomalies and injustices concerning the widows of superannuitants. The Minister also referred to the need for something being done for members of Parliament. There should be some process of payment instead of grants placed on the Estimates annually for members who had served for Vears.