RETIREMENT SCHEMES

Press, Volume CI, Issue 29734, 30 January 1962, Page 16

RETIREMENT SCHEMES

Railwayman’s Proposals

Two superannuation schemes were submitted to the Royal Commission on State Services by Mr C. J. Alford, a railway surfaceman, at its sitting in Christchurch yesterday. Mr Alford is a national councillor of the Amalgamated Society of Railway Servants. Under the present Railway superannuation scheme members did not get an equal, proper or fair share on retirement for the amount they paid in and the years they served, he told the commission.

“One of the tragedies in the railway service is that through the superannuation scheme lacking sufficient attractions for the lower-paid members, who do not get a chance of having a greatly increased salary over the last five years, many have withdrawn from the fund,” he said. “The number of railway employees contributing to the Superannuation Fund at November 4, 1961, was 9459 out of a staff of approximately 25,000.” said Mr Alford. "If a member resigns before he has completed the required time, or he elects not to be a contributor to the fund, he is paid back in a lump sum what he has paid in, without interest. I think there should be a provision in the superannuation scheme similar to what is provided in an insurance policy: that is, one should be able to have a paid-up policy.” While being in no way critical of the Social Security set-up an objection came from the lower-income members who were contributors to both schemes, said Mr Alford. “They feel that it should not be necessary to have their superannuation subsidised from Social Security for they could have received Social Security without being a member of the superannuation scheme Mr Alford said he favoured a scheme which, it was considered, would assist members without avenues for promotion, to whom five-yearly regrading did not apply, and who could not pay into the fund on the amount they received through overtime.