Superannuation Now A Big Business

Press, Volume CIII, Issue 30406, 3 April 1964, Page 10

Superannuation Now A Big Business

(fleu> Zealand Press Association?

WELLINGTON, April 2. All superannuation had developed into big business and the accumulated funds involved ran into several hundred million pounds, said the retiring Superintendent of the National Provident Fund and the Government Superannuation Fund (Mr M. Aldred) today. He said many contributors were benefiting today from employer-subsidised schemes, but little had been done to see that every employee had the right to join. This aspect of superannuation should be studied by a working committee together with the preservation of the rights of contributors who wished to change their place of employment or who, for some reason or another, found' they could not continue with their contributions. “I see no reason why any employee between the ages of 15 and 50 should not be a contributor to a superannuation scheme employer-subsi-dised on a 50-50 basis. The National Provident Fund, by using the savings method, could give a reasonable ser-

vice In this field which would be excellent for rural workers,” he said. The eroding effects of inflation on annuities should also be a subject of study for a working committee. It should not be difficult to evolve a formula for adjustment. Lump Sums Because the average person was not experienced in handling large sums of money, employees should be protected from the suggestion that a lump sum benefit was superannuation, Mr Aldred said. Many people would dissipate a large lump sum and lose savings made over a period of 40 years. “The normal quarter of the benefit as a lump sum and the balance as an income for life, as applying in State services, should apply to all employees,” he said.

The police will begin this month a campaign to get 670 recruits by December 31 next year. Two commissioned officers have been appointed as recruiting officers, one for each island. The job will take them to shows and trade exhibitions.—(P.A.).