DEPLETION OF FUND.

New Zealand Herald, Volume LXVIII, Issue 20898, 13 June 1931, Page 8

DEPLETION OF FUND.

PENSIONS FOR TEACHERS. "THE CAPITAL EATEN INTO." POSITION BECOMING WORSE. BOARD MEMBER'S WARNING. Tho serious position of tho teachers superannuation fund was pointed out by Mr. F. A. Garry, a member of the teachers' superannuation board, at a meeting of Auckland members of tho New Zealand Federation of Teachers last evening. Mr. Garry said it was known that the state of the fund had been growing worse within recent years, but members of the board had refrained from making the position public. "At the last meeting of the board an alarming statement was submitted by the secretary," said Mr. Garry. "Dor tho first time in the history of the fund the capital has been eaten into to meet commitments. The state of the fund is going from bad to worse. If tho present position continues, in about 15 years, when the peak of payments is reached, there will be no more capital and the fund will practically cease to exist." Mr. Garry said the fund had suffered in more than one way. When it was inaugurated in 1906, the Government accepted liability for the payment of the retiring allowance to those in the service before that date without the payment of contributions on their part. During the currency of tho fund, about 25 years, this liability had amounted to about £750,000, while the amount paid in to the fund by successive Governments had been less than that amount. This meant that the Governments had not paid anything toward the retiring allowances of the present contributors, who had had to undertake tho liability accepted by the Government when the fund was opened. The fund had suffered further by the fact that a considerable number of contributors received relatively much more than others, Mr. Garry said. It was felt that the time had arrived when teachers as a whole should know the position of the fund and effective measures should be taken to make the fund financially sound. It was decided to set up a committee to investigate the position of the fund and to report to a later meeting.