The Dominion FRIDAY, DECEMBER 1, 1933. THE STATE SUPERANNUATION FUNDS

Dominion, Volume 27, Issue 58, 1 December 1933, Page 10

The Dominion FRIDAY, DECEMBER 1, 1933. THE STATE SUPERANNUATION FUNDS

It is to be hoped that the conference of representatives of the three State Superannuation Funds now being held to consider the i serious position in which the contributors and. annuitants find themselves will be able to formulate proposals which will be of practical assistance to the Government in its efforts to stabilise the situation. Something must be done, and done quickly, if the funds are to be saved from disaster. The Finance Minister’s statement to the conference yesterday is probably the simplest and clearest exposition of the problem we have had to date. Any person of average intelligence, perusing it, must be convinced of the seriousness of the position. . On their present basis the funds are insolvent. Unless the adjustments Mr. Coates declares to be essential are made, the contributors and annuitants will lose everything. There can be no question about that. It is no use blaming the Government for the present state of affairs, and .contending that the failure of successive Governments to pay into the funds from time to time the sums necessary to maintain their solvency constitutes a breach of faith for which it would be unfair to penalise contributors and annuitants. Even had these payments been made, the fact remains that the concessions made by various Governments in flush times in respect of benefits and privileges imposed such a burden on the funds that, actuarially, they were unsound. The figures quoted by the Minister make that perfectly clear. Furthermore, the members of the funds cannot piead ignorance of the fact. In regard to the Teachers’ Fund especially, members have been warned frequently by their more prudent leaders in conferences of the danger of over-loading it with additional benefits extracted from indulgent Governments. Pointed attention was drawn to. the. state of all three funds by the National Expenditure Commission in its final report of 1932. Prior to that the actuaries had repeatedly emphasised in their reports to the Government the need for taking steps to safeguard the position. If anybody is to blame, then everybody is to blame. Recriminations will not. help matters. The facts are plain, and it is for all concerned to face them in a constructive spirit.

' That sacrifices will be necessary is obvious. The Government is prepared to do its part by binding the State to make definite and regular contributions by way of subsidy. Members of the funds, on their part, must recognise that their position can never be made actuarially sound on the present scale oj benefits.