RAILWAY SUPERANNUATION

Evening Post, Volume CXVI, Issue 83, 5 October 1933, Page 10

RAILWAY SUPERANNUATION

(To the Editor.) Sir,—ln your sub-leader a note of alarm is* sounded with regard •to the financial position of the Railways Superauuation Fund; biit an analysis of the figures of the report, in question does not disclose any warrant for this alarm. The figures show that from the iiiception of the fund up to the end of the financial year 1930 (about the date the depression showed effect) an average annual load of £15,032 was paced upon the fund; but as there were continual heavy lapses from the fund, mainly owing to deaths of anuitants, the net average annual load placed

on the fund during the period was only £9714. Now, the trouble began, two years ago when the Government commenced its wholesale retrenchment policy, and loaded a thousand or more members on to the fund; a very big percentage drawing a large superannuation. The actual total liability added being:—l93l, £40,573; 1G32, £143,807; 1933, £26,197. Naturally, therefore, the fund must become depressed, but the peak .hag surely been reached and the prospect for the future is for a definite easing of the financial strain. A material point that was apparently overlooked was an item of £45,000 odd "in respect of rebates in accordance with section 9 of the Nationnl Expenditure Adjustment Act, 1932." This sum alone which is an exceptional liability, considerably affects the deficit ehown. A further point mentioned is reduction of interest owing to recent legislation, but. this only amounted to £2186, a very mod-1 crate sum.—l am,- etc., OBSERVER. ! [The point to which we drew attention ' as. disclosing urgent need for action was j the fact that it had proved necessary to draw heavily upon the capital of the I fund.—Ed.J I