EMPLOYERS' PROVIDENT FUND

Evening Post, Volume CVI, Issue 81, 3 October 1923, Page 4

EMPLOYERS' PROVIDENT FUND

SATISFACTORY RESULTS.

The financial year of Messrs. .Sargobd,. Son and Ewen s employees' provident fund ended 30th Jane. Tt is now reported that the fund shows members' account at £24,633. , The fund.' was begun about three and a half years ago, and one of the reasons for establishing the fund was to secure mutual advan-^ tages both to the company and to the* employees. The .directors wished to attract and retain good men, in this way, stabilising the service of the company; also to ensure to those who loyally serv-' ed the company some substantial recognition of their efforts when they reached the retiring age. With thiS end in view an initial contribution of £50C0 was made to the funds oi the association, and in addition an annual subsidy of £3000 has been paid. The members' financial interest in the association is made up of -contributions .paid •monthly, from tneiv salaries. Employees become eligible for membership on attaining- the age:, of 21 years, and for tile first four years -of memberßhip contribute iour per <;ent. per annum of their salary, after which (on attaining 45 years),: the member's payment is, caJcuLsttefl at, five per <*nt. per annum. , .The funds are the absolute properly of the members of the association. They' are controlled by and vested in trustees, three of whom are-elected biennially by the .stag of Sargood,: Son and Ewen, Limited, the remaining trustees being the New Zealand directors of 'the company. The investment of -the funds is restricted to securities of the highest class, namely, Government stock, municipal -and iarbour board debenture!.. ±ne balance to-credit of members as set out above, is represented -by income from -investments, subsidy from the company, and contributions from ' the members themselves. Although'- the return from these ,gilt-edged securities is of necessity comparatively modest, nevertheless, the subsidy paid by the company results in the members' annual subscriptions being more than double. The^yment oi this; annual grant of . ±,auuo to the Association has in uo way been allowed to interfere with the scale ot salaries and bonuses paid to the staff.