TEACHERS' SUPERANNUATION.

Press, Volume LX, Issue 11748, 24 November 1903, Page 8

TEACHERS' SUPERANNUATION.

AN INSOLVENT SCHE-O. (spxet-t; to "th- .mss.") WELLINGTON, November 23. The Minister of Education has submitted to Parliament the report of the Acting-Actuary of the Government Insurance Department; regarding ;th* teachers' superannuation scheme, with respect to the proposed benefits and contributions. In order to make the scheme solvent for mala teachers now in the service, at least £297,000 would be required. In other word*, tbo present, value of the'proposed < benefits exceeded, the present value of the proposed contributions by that amount.

In regard t» female teachers, the contributions provided by the Teachers' Superannuation Bill aro for the ages of 30 and under, 6 per cent, of salary; over 30, bnt not exceeding 35,.6 per cent.; over 35, but not exceeding 40, 6_ per cent.; .over 40, but not exceeding 45, 8 per cent.; ovear 46, but not exceeding 50, 9 per cent. $ over 50, 10 per cent. The minimum contribution is not to be less than £4 per annum. , Female teachers who havo contributed during a period of 25 years are entitled to nil tlie benefits of tho fund without farther contribution*

The Actuary states that in the case of ' fem-k> teachers entering the service under the age of 21, about 90 per cent, will withdraw before they are entitle- to pensions. Iv the majority of cases the withdrawals are no doubt caused by marriage, and tbo pension scheme would not cause these femalea to remain in tbe service, or materially diminish the rate of withdrawals, as would no doubt'be the ca«e as.reg-rds male teachers. The amount •equircd to be paid at once on behalf of 1388 female teachers, in addition to the contributions provided for in the Bill would be about £128,000.

Allowing for the probabilities of death and retirement, and not taking into account any benefits their children might be entitled to under the scheme, the deficiency in the case of male teachers was £297,000, making a total deficiency of £479,000 at least for teachem now entitled to join the scheme.

As the present values oi the contributions for new entrants, both male and female, are less than the present values of the proponed benefit*, every teacher hereafter appointed will add to this deficiency, and 'increase tho amount the Gov-

ernment will ultimately have to contribute to finance the scheme. The number of male teachers is 1251, of whom 66 are aged 60 and over, and 16 are under the age of 60, bub have service for 36 years, making a total ot 72 male teachers entitled to retire at ones under,the scheme on pensions amounting in the aggregate to about £6600 per annum. To provide pensions for the older teachers without Government aid is quite impossible, and iv regard to new entrant* the rate proposed, viz., 5 per cent., is hardly sufficient to provide a penaion to the teacher himself without the return of contributio_a or the benefit* to widows and children. The New Zealand Civil Service Insurance Act, 1893, provides for a perfectly solvent scheme of pensions and insurances, and th* teachers in native _c_bols already purcbaie their own'pen-ions under this sgrstem without cost to the Government.