Pension rights an issue?

Press, 2 March 1981, Page 10

Pension rights an issue?

PA Wellington The pension rights of State employees could become a public issue, according to the Government Actuary, (Mr K. M. Prisk). i- - , “After all, it is the public who pay for these pensions,” he said in a recent address to the Association of Superannuation/Funds in. Wellington. “On the other hand; some of ; the ancillary benefits -—withdrawal and. death— — are woefully inadequate: by the standards in ’the private sector Mr Prisk said that integration with National Superannuation had to be seriously considered for State employees. Mr Prisk regulates private superannuation and is actuary for the Governm e n t Superannuation Fund. He is, also Registrar of Building' Societies and Friendly Societies and is an adviser on the regulation of life insurance. . He said that mobility of the work force was part of the New Zealand way of life and that the notion of a superannuation scheme being provided to

retain employees until retirement was rapidly becoming out of date. The State services adhered to this outdated view and this frustrated many public servants who could not afford to leave because their accrued pension rights were almost worthless. // “As a result they are not performing tor the best of their, ability,” " said Mr Prisk.'- ' 4 , Of . private/- ~ super- . annuation, he said that. real values was a' problem ' facing pensioners and that. to ignore their. plight was - totally wrong. “A commonly, held view is that we did not cause inflation so why should we pay. Surely this is an unrealistic approach to the fact that inflation. does exist and it is not going to go away.” Mr Prisk said that while high’ levels of price increases had occurred, the price of money and investment yields were significantly, higher. . “Surely- some of those ■' higher. investment .returns can be . used., to improve the lot of pensioners." It seemed that trade

unions were rather, naive in the field of superannuation and likely emplovee benefits as a whole except in the State employee groups. This situation would change in the 1980 s and more unions could be expected to consider industry-wide schemes.