FUND “PLUNDERED FDR THE FEW”

Evening Star, Issue 21569, 15 November 1933, Page 9

FUND “PLUNDERED FDR THE FEW”

HISTORY OF SUPERANNUATION PUBLIC SERVANT FEELS HE HAS SEEK BETRAYED [Pek United Pkess Association.] INVERCARGILL, November 14. The vexed question of public servants’ superannuation was touched on by Mr James Hargest, M.P., during an address at to-day’s Rotary Club luncheon. “The public servant,” said Mr Hargest, “ feels that he is being betrayed, and I must confess that after a pretty close study of the matter and after sitting as a member of the commission of inquiry 1 have come to the conclusion that there is a great deal to commend his point of view. The history of the Superannuation Fund is a

very regrettable one, and the Government has never carried out its full obligations. Perhaps it was unduly lavish with the retiring allowances and did not ask sufficient from contributors, but the fund has been used as a dumping ground for early retirements, and has suffered accordingly. Ju contrast to the state of the Government fund we have the Wellington Harbour Board’s fund. Both were run on similar lines, but whereas the former was mishandled the latter was properly administered, with the result that to-day the Harbour Board has sufficient funds to pay all its obligations without endangering flic position, and has actually requested the Government’s permission to pay retiring allowances in excess of £3OO per year. The Government to-day is suffering from the suspicion, not to say disloyalty, which has been aroused among Civil servants by its attitude on the superannuation question. The position has to be met sooner or later, and I hope that a Bill will very soon he brought down and the whole matter clarified. “ There is no doubt that the fund has been plundered in the past in favour of a favoured few,” said Mr Hargest. “ I know of one case where a servant’s total payment to the fund came to £273, yet. in the. past six years he has received £833. This is probably not tha worst case nor the best. To-day tha public servant is asking what is the Government going to do. I do nob believe that it is possible to maintain in its entirety the system devised in 1906. .The fund could not stand tha strain. There is no use the public servant thinking that the fund cap go on as was originally intended, for it would break down; but the taxpayer must realise that so far as the country’s position will permit the contract must ha honoured.”