No changes to Super, scheme

Press, 25 September 1980, Page 2

No changes to Super, scheme

PA Wellington The Government made it clear yesterday to the Government Superannuitants’ Association that it will not make the improvements to its superannuation scheme the association is seeking. Addressing the annual conference of the association, the Minister of State Services (Mr Thomson) said he was aware that the improvements made to the Government superannuation scheme in the Government Superannuation Fund Amendment Act, 1979, did not satisfy the mairi area of the association’s concern — an extension to the cost-of-living adjustment scheme. “The Government subsidised the superannuation fund by more than.'s93 million in 1979-80, increasing to $l2O million in 1980-81,” Mr Thomson said.

“The cost-of-living adjustment makes up a large proportion of this amount. For example, the additional amount paid out by the Government this year for the 1979 cost of living movement alone was about $l3 million,” he said.

Although the association asserted that the cost of the improvements would not be great, all interest groups said the same .thing, Mr Thomson said.

In the fight against inflation it was important to reduce Government spending. “I believe the cost of living adjustment provisions as they were introduced in 1969 and improved since then, represent a very real commitment by the Government to the welfare of its retired employees at a very considerable continuing cost. , “We could not look at this stage to further improvements,” Mr Thomson said. Speaking at the same, conference was the Labour spokesman for economic development, Mr R. J. Tizard. He indicated Labour’s willingness to consider the claims put forward by the association but said it would not be fair to existing contributors paying an extra contribution for his party to provide the 100 per cent in-flation-proofing for existing beneficiaries that the Association wanted.