Superannuation Fund

Dominion, Volume 27, Issue 69, 14 December 1933, Page 11

Superannuation Fund

Sir, —Viewing a recent publication in your valuable journal giving the result of an interview by the Public Service representatives with the Minister of Finance re condition of the superannuation fund, one item as. recommended by the Economy Commission that certain annuitants are to be exempted from any deduction, viz., “all those who have retired on superannuation prior to 1921. - Why this recommendation is very difficult to understand, as in many cases, no doubt, the annuitants are in receipt of a very handsome yearly income from the fund. If it is actually imperative that a deduction must be made, then the most equitable procedure to adopt would certainly be on a graduated scale. To lessen the reduction of income of the small man or woman, at this stage, would create great hardship. I suggest the following for some consideration, as it may lead to a modification of what at present is really “sub rosa.” A graduated scale as I suggest is, firstly, to make an exemption of all annuitants up to £3OO per annum. As this sum represents the small man’s income, and from this he has to contribute 1/- in the £1 tax, dole, insurance, rates, taxes, and has his living to provide and .interest possibly on a mortgage and house rent, and what is left for sickness? Why, nothing. If a graduated scale is brought into action, they from £350. say, 21 per cent, to 15 per cent, on £l5OO to £2OOO, graduating as follows : — £350 to £450 a year, for all annuitants 2} p.c. £450 to £GOO 5 p.c. £6OO to £7OO 7$ p.c. £7OO to £lOOO 10 p.c. £lOOO to £l5OO j.' 12J p.c. £l5OO to £2OOO 15 p.c. It is recognised that the handling of so delicate a piece of business dealing as it does with a large body of men and women, that great care and consideration is essential to avoid crippling the small man or woman. If a cut is to be made, then I presume the 1/- in the £1 will not be a tax to pay as it would mean a great reduction unable to bear both items for annuitants. —I am, etc., SYMPATHISER. Day’s Bay, December 8.