STATE SUPERANNUATION.

New Zealand Herald, Volume LXI, Issue 18703, 8 May 1924, Page 11

STATE SUPERANNUATION.

COST OF THE SUBSIDIES. • k "V* \ \ v* \ " • • •■ "v "* ; -i-V • ;; * " PUBLIC 1 SERVANTS' POSITION • Certain statements concerning superannuation benefits derived by public servants are challenged by. Mr. VF. W. Millar, general . secretary of the New • ZeaV: land Public Servants' Association, The Public Service • Superannuation' Fund, stated Mr. Miliar, although quite distinct from that of the- railways, ; yet bad much rin common with it, and a full state- / ment of the • whole position r would throw a totally different»flight on the situation. • ! It was generally : recognised .that. the " employer, equally with the employee, de- • ' - : rived -an ; advantage from . a superannua- • tion scheme, and ■ the -:• following facts •; r showed that the State received these ad- ' vantages at a lower cost than was usual > iin such ; systems, while - the public serr vant was in no way "privileged"; in com- . parison > with > the ''general ''public, or with the employees of. any other large institu- ■ . tions. ;V;:- -:a ' \>' ' 'v':':; • ' Until . . 1886, said ' Mr. Millar, officers .• were assured of.i a?'pension : without ;any :(■: ;. contribution on {heir; part, : and ?in that year a':five per cent, deduction * was made vin salaries, i ; arid accumulated at interest ; ; with .the Public Trustee.; In 1908, the present system came into being, when the ■'y Government was 'released • from compenv ; sation, liability. The fund had no fixed subsidy and bore its own expenses. ; Tha ; ; Government ; subsidy Was rapidly nearing its : highest point, whence it would recede until -it vanished completely, the • contributions of members supporting the whole ; scheme. , The Government '; sub- , sidy to; the fund : was; 37.7 per cent, of , ; members' contributions, but in cases vof : local authorities '.the I employers' subsidy ranged from 60 per' cent, to 80 per cent.