CIVIL SERVICE

Evening Post, Volume CXXVI, Issue 89, 12 October 1938, Page 25

CIVIL SERVICE

SUPERANNUATION FUND

Speaking at Porirua last night on behalf of Mr. G. A. Monk, the National Party candidate for Otaki, Mr. A. B. Sievwright directed attention to the Civil Service Superannuation Fund.

"From an actuarial point of view," he said, "the fund requires a guarantee from the Consolidated Fund of £26,000,000 to place it on a sound financial basis. Contributions to the fund have been largely invested by the Public Trustee. Both these financial arrangements are menaced by the present Socialist Government's policy and proposals. Despite the efforts of the National Party in . Parliament, the social security payments of Is in the £ on all wages and income are to .be paid, not into a separate account, but directly into the Consolidated Fund, and such payments will not pay 50 per cent, of the liabilities in respect of the social security payments. Thus the Consolidated Fund will have to bear a heavy burden and in the event of a serious fall in revenue the Consolidated Fund will not be able to carry both the Civil Service Superannuation and the social security scheme.

"In addition, if the plans set out in Mr. J. A; Lee's 'Socialism in New Zealand' be put into operation, the funds invested with the Public Trustee are liable to be confiscated by.the State. The civil servant, therefore, may find that his position is seriously menaced. Should the Socialist Government find itself in financial difficulties it may be compelled to abolish the Civil Service superannuation altogether and place the civil servant on the same basis as old age pensioners. "Let every civil servant," concluded Mr. Sievwright, "seriously consider what effect the return of the Socialist Government to office will have on the retiring allowance for which he has spent a lifetime of faithful service."