"GROWING DISTRUST"

New Zealand Herald, Volume LXXV, Issue 23019, 22 April 1938, Page 11

"GROWING DISTRUST"

STATE TENSION PLAN EFFECT ON PRIVATE FUNDS . CONTRIBUTORS APPREHENSIVE £bY TELEGRAPH —OWX CORBESrONnKXT] WELLINGTON, Thursday There appears to be a growing distrust on the part of employees of firms and corporations which already have superannuation schemes of the Government's national superannuation proposals. "In our case," said an officer of the Wellington City Corporation, " we have a superannuation scheme, contributed to by the members of the staff, subsidised by the City Council from the general fund. This fund is administered by the National Provident Fund, a Government institution. Now it appears that a national scheme is to be brought into effect, some of our members are apprehensive as to what is to occur to our own fund, which I believe is not only actuarially sound, but is a fund out of which a profit is made. "Under the Government scheme there is nothing to be gained by tho person who by reason of some other form of benefit —superannuation, insurance, an annuity, or investments —will have an income above a certain amount; So that tens of thousands of people will be paying into a fund all their lives which will not benefit them, but rather will be used largely to benefit the thriftless." The council's employees are to hold a meeting to consider how they stand in respect to the superannuation proposals of the Government. Although diieir scheme is restrictive in its benefits some of the members of the Municipal Officers' Guild wish to preserve its identity.