SUPERANNUATION SCHEME

Press, Volume LXXXI, Issue 24743, 7 December 1945, Page 4

SUPERANNUATION SCHEME

New Plan For Civil Service SUBSIDY PROVIDED IN BILL (P.A.) " WELLINGTON, Dec. 6. ■ The abolition of the £3OO superannuation limit allowed Government employees and provision for State subsidisation of retiring allowances by a £ for £ subsidy with a minimum subsidy of £l5O and a maximum subsidy of £3OO, are included in the Superannuation Amendment Bill introduced and read a'first time in the House of Representatives to-day. The provisions of the bill apply to the civil service generally, including employees of the Railways and Post and Telegraph Departments and teachers.

The present provisions are that a civil servant wnose contributions began in 1909 or subsequently pays superannuation oh his whole salary, and at the end of 40 years' service receives a pension on the basis of twothirds of his average annual salary during the last three years of service, with a maximum of £3OO a year. Those joining the fund prior to 191ju are exempt from this maximum. The provisions of the bill introduced to-day give a State employee, after 40 K ears' service, a pension of one-third is average annual salary during the last five years, plus the £ for £ subsidy. Thus ah employee with an average retiring salary of £240 draws, on the present scale, £IBO. On the new scale he will draw £230, comprising his* contribution of one-third plus the minimum subsidy of £l5O. On an average retiring salary of £3OO, a superapnuitant on the present scale draws £2OO. On the new scale he.will draw £IOO plus the £l5O subsidy, a total 0f'£250.. On a salary of £450 the present superannuation is £3OO. The new scale will provide the same sum, comprising £l5O contribution and £l5O sbsidy. .On a £9OO average salary the present superannuation is £3OO. On the new scale it will be £3OO contribution plus £3OO subsidy. On a.salary of £ISOO the present superannuation is £3OO, being the maximum. On the new scale it will be a contribution of £SOO plus the maximum subsidy of £3OO, giving" a total of £BOO. Thus those up'to £450 retiring salary receive .a subsidy exceeding the £ for £ subsidy. Those from £450 to £9OO receive the subsidy of the £ for £ scheme, and oh salaries above £9OO the subsidy falls below the level of the £ for £ scheme.

The section dealing with the railways service states that maje contribuwhose length of service is riot less than 40 years or whose age is not less than 60 and female contributors whose service is not less than 30 years or whose age is not less than 55, may at any time retire at the expiration of three months' notice. The bill contains a number of general provisions, one of them increasing the maximum retiring allowance to magistrates. Allowances, to contributors' widows are increased from £3l to £52.

Mr Nash paid a tribute to Public Service organisations in the numerous discussions that had been beld. There had been quite a number of differences but the service organisation was satisfied with the general principles and supported the bill. The • Government planned next year to consolidate superannuation funds and details would be discussed again then. , Mr G. H. Mackley ,(Opposition,Masterton) congratulated the service organisations on the results of their persistence and complimented the Minister of Finance and the Government on doing what they had done to remove long-standing injustices and inequity.