SUPERANNUATION

Evening Post, Volume CXVI, Issue 104, 30 October 1933, Page 10

SUPERANNUATION

THE RAILWAY FUND

QUESTION OF ALLOWANCES

THE EETIEING AGE

As comment has been made regarding superannuation allowances, a special analysis of current payments from the Railway Superannuation Fund was made at the meeting of the committee of the Railway "Superannuitants' Association on Saturday evening. The committee, it was stated, did not object to criticism, indeed it welcomed inquiry, as it was right that the public should know all the facts relating to public expenditure.

The statistics made available to tho meeting showed that 51 per cent, of present Railway superaunuitants were receiving less than £.150 per annum, 73 per cent, drew under £200 per annum, 93 per cent, drew under £300 per annum, while less than per cent, were in receipt of allowances exceeding £500 per annum. .These allowances, it was asserted, had been purchased on the same general principle by which contributors to other New Zealand superannuation schemes, notably those started by local authorities, banks, and mercantile houses, were purchasing their annuities. Since 1903 the contri-i butors to the Railway Superannuation Fund have paid £3,036,318. . ' FUND STABLE. Much discussion took place as lo the future stability of the fund. It was pointed out that tho extraordinary charges during the past two years by reason of the numerous compulsory retirements incidental to tho retrenchment policy, had certainly brought about a temporary setback to tho present finances, but it was stressed that the causes and conditions were purely transitory, and it was definitely shown that in about seven. years the annual deficiency would, be overtaken and the accumulations to reserves re-established, even though the present conditions should continue for that period. It had been suggested that there should be some limitation of the allowance, and it was thought that it should be generally known that in 1908, when the Government Superannuation Act was amended, the maximum allowance for superannuitants who joined the service after 1908 was fixed at £300. PRIVATE WORK. , Tho propriety or otherwise of State superannuitants engaging in activities for gain or l'eward, as reported in the Press from Dunedin and Oamaru recently, was discussed in all its aspects. It: was niade clear that the committee was concerned, not with individual cases, but with the principle It was recalled that under the original Act contributors could retire after forty years' service, or upon attaining tho age 'of 60, but shortly after the scheme was introduced the age, by Cabinet decision, was made 65. Had the first system continued some men would have retired by age and some by service. In 1924 compulsory retirement was introduced after 40 years' service, irrespective of age. There are cases of men having to retire at 52 years of ■age. / This position was intensified in 1931, by the compulsory retrenchment scheme, where practically all those who had served for 35 years wero put out. .Had these men not.been put out they would have continued in employment at their ordinary salary, but owing to the compulsory retirements they now had five years on an unexpectedly reduced income, and if they wero to be debarred from augmenting their annuities by engaging in private . work, •they would be doubly hit. Going further afield, it was stated that there was ample evidence that in England, where early retirements were unknown, no restriction was imposed, either upon civil servants, subject to their efficient performance of duties, orupdn superannuitants, who wore perfectly free agents, doing private work. Indeed, the public Press showed that the contributions of members of both these classes in various directions, such as in literature, science, and art, were welcomed by a public noted for its keen appreciation of merit. England was proud of a Civil Service with a .fine background of tradition, and had had in its ranks men of great distinction. The subject had not yet cropped up in Australia, where in most of tho States the optional retiring ago was 65 years. RIGHTS OF EMPLOYERS? It was pointed out that the question really touched the rights of selection of those who were in a position to offer employment. If the case were one calling for the exercise of special ability, knowledge, or talent, no English community could long stand for any restrictions on such lines, whether by decree or by pressure of some interested group. It was admitted that the cry of unfair competition might be raised in an overcrowded labour market during times of acute depression, but it was within the knowledge of the committee, it was stated, that a number of Railway superannuitants were receiving very low allowances, assessed by the Government. Actuary by a formula known only to that official. f RETIREMENTS THE CAUSE. With the question of low allowances should also be considered the conditions of the employment which had been'rendered to the Government, notably the frequent transfers rendered necessary by the far-flung nature of the railway system. Tho effect on furniture was disastrous. The colloquial equation of railwaymen was "Three shifts one fire." Further, a large number of railwaymen were required to. live in houses provided by the Department, and this meant that on retirement, they wero faced with the necessity of providing homes for themselves. Notwithstanding all such considerations, the opinion was expressed by the committee that there would bo practically no competition for employment by railway 'employees if they had been allowed to serve the nornu.l period beforo retirement. Tho Government, would be well advised to abandon the policy of retiring men in their prime, a policy instituted long before the need for retirement arose.