ACTION URGENTLY NEEDED

Evening Post, Volume CXVI, Issue 80, 2 October 1933, Page 8

ACTION URGENTLY NEEDED

When the National Expenditure Commission, guided by expert advice, emphasised the urgency of steps to place the, superannuation funds on a sound basis, there was a tendency in some quarters to regard the report as alarmist. The huge actuarial deficiency, it was suggested, was something that did. not demanal such drastic measures. The pensions could still be paid. The p.osition since has become worse. It must be- ' come worse in so far as conversion and other interest-reduction' | measures are effective in lowering the return on investments. An il-j lustration' of the urgency is given in the report of the Government Railways Superannuation Fund. Expenditure last year exceeded income by £76,185. This, was no actuarial deficiency, but an actual deficit. Ac- | cumulated funds were reduced by £120,928, and it was necessary to' transfer £123,451 from the investment funds to current account. It i needs no argument to prove that when such inroads are made on capital the position must become more and more 'difficult asi the return from investIments grows less. Clearly it is to i the interests of all concerned, and especially those who are receiving or, anticipating benefit from the fund, that no further time should be lost in deciding and carrying out the adjustments required to restore stability. ±. • .. '■ ;'.'