Comparison On Pension Adjustments “Invalid”

Press, Volume CX, Issue 32354, 21 July 1970, Page 13

Comparison On Pension Adjustments “Invalid”

A comparison between the cost - of - living adjustment scheme introduced into the Government Superannuation Fund last year and the fact that similar adjustments are not being made to annuities purchased from the National Provident Fund, is not valid, says the Minister of Finance (Mr Muldoon) in reply to a correspondent of “The Press."

In a letter to the editor of “The Press” the correspondent “Very Interested," says: “Superannuated public servants and teachers have all had an increase in their superannuation: salaries and wages have increased 18 per cent since 1968 according to the latest statistics issued, because of the increase in the cost of living; yet National Provident superannuated persons have received no Increase whatever.

“People who 50 years ago contracted for a dollar or two dollars a week or more at the age of 80, still receive only that amount. Surely those in this savings scheme should receive similar increases to other superannuated persons. The Post Office has increased its interest in various ways, also.” Mr Muldoon replies: “The costs of the benefits from the Government Superannuation Fund are shared by the employees and the State in its special role as employer. The introduction of the adjustment scheme (which has been applied on a modified ex gratia basis to existing superannuitants) has involved an increase in the level of contributions by both employees and the employer. “In the case of those annuities mentioned there are no such elements of employeremployee relationship, or em-

ployees contributing as a group. The annuities have been purchased by individual members of the puolie in their private capacities on a strictly actuarial basis. Each person has ah individual contract with the National Provident Fund Board and there would be no possibility of a review of over-all contribution rates as was negotiated with the employees’ representatives in the Government scheme,” he says. “I would mention that, in so far as the schemes administered by the National Provident Fund Board for local authorities are concerned, negotiations are at present being held concerning the introduction of a cost - of • living adjustment scheme. Basically this particular issue will depend on the willingness of the local authorities as employers, and of their employees to make the additional payments required.”