THE PUBLIC SERVICE.

New Zealand Herald, Volume LXII, Issue 19214, 31 December 1925, Page 11

THE PUBLIC SERVICE.

I MORE RETIREMENTS SHORTLY HEAVY DRAIN ON THE FUND. A LARGER SUBSIDY REQUIRED. [by teleghaph.— press association.] WELLINGTON, Wednesday. In consequence of the announcement that a large number of public servants will be retired presently tho Public Servico Association has written to the commissioner pressing that all officers of 65 should bo retired irrespective of thenlength of service and all others on completing 40 years' service, provided they are 60. On the other hand, it appears that the present conditions are pressing too heavily on the superannuation fund. An official report to the Superannuation Board states that the heavy strain on the fund, due to recent numerous retirements of comparatively young contributors, can only be relieved by a substantial increase in the statutory subsidy. The fund stands at £2,250.000 and tho interest earned has increased to nearly six per cent. Still it is far from enough. The report says the officers are alarmed at the advantages taken by the department of recent modifications of the Act, and it specially stresses the retirement of contributors at 40 years' service or less. In many cases they are ten or eleven years short of 65, and their retirement causes a loss of contributions never allowed for. The original calculations were based on tho assumption that few retirements won Id take place under 65. The actuary is investigating the position and will report to the Government the amount of extra subsidy required to make good the deficiency.