DRASTIC CUTS

Grey River Argus, 24 September 1932, Page 5

DRASTIC CUTS

IN SUPERANNUATION Government’s Intention (From Our Parliamentary Reporter-. PARLIAMENT BUILDINGS September 22. The brief mention in the 11 Speech from the Throne” of the fa« t that the Government would this session bring down legislation dealing with super annuation, lias aroused widespread interest among public servants and the public generally. For some years past it has been common knowledge that three funds, the Public S rvicc, th? Teachers, and the Railways Superannu. ation Funds have been far from actuarial)’ sound, but the ( Members of both Houses have experienced extreme difficulty in obtaining any specific information about this in reply to pertinent questions. In his budget in the year 1929, the late Sir .Joseph Ward drew attention to the failure of successive Govern meats to pay tji? subsidies which Would have made funds actuarialy sound. If "as noted by Sir Joseph Ward that the shortage of the State subsidies on account of the currant pensions alone was over £2.000 000. The pensions had be< n paid (and have been since) out of the contributions of the officers still in the service, and th? present liability of the State, with respect to its sub-

sidy can only be guessed st; but it is expected that much light will be shed on this complicated problem before the session ends. It is stated, on good autho’ity, that the amount, required to make the funds actuarialv sound is between £20.000,000 and ‘£25,000 000, and there is no doubt that the Government row intends making a drastic alteration in the con ditions of retirement.