Pilots unhappy about changes to national superannuation

Press, 31 August 1989, Page 16

Pilots unhappy about changes to national superannuation

By

Patrick Mclennan

Government changes to national superannuation could result in an exodus of airline pilots overseas next year, an Airline Pilots’ Association spokesman says. Going overseas was one option pilots had in the light of Government policies which would substantially reduce their lump sum superannuation payments, said the association’s president, Captain Peter Hensley-

Bennett, of Auckland. “The wild card is that there are so many jobs around the world they could just take the lump sum and run.” The new superannuation laws take effect from April 1, next year. Superannuation payments would immediately fall by 5 per cent, and continue falling, he said. Captain HensleyBennett ruled out any direct industrial action being taken by the pilots, but said they were “very

unhappy” and would be i “considering their op- i tions.” The Government’s new withholding tax would I mean every dollar paid i into an employee’s de- i fined benefit scheme would be taxed at a rate I of 33 per cent. i “The defined benefit j that has been paid in the ! past will reduce to about i half of what it was,” he said. i Airlines such as Air i New Zealand would be 1 able to claim back < money paid into the 1 HIHHIHHBHHB

direct benefit scheme under the new laws. Captain HensleyBennett said the pilots had few means of countering the effect of reduced superannuation. “What we’re looking at is asking the employers to increase payments into the fund to absorb some of the effects of the tax.” Air New Zealand’s management had showed no interest in talking to the association about increasing its contributions to the fund.