RAILWAY RETIREMENTS’

New Zealand Times, Volume LI, Issue 11786, 24 March 1924, Page 8

RAILWAY RETIREMENTS’

AND SUPERANNUATION FUND. (To the Editor, “N.Z. Times.”) Sir, —The Hon. Premier has again been calling attention to the necessity of exercising care in connection with public expenditure, and mentioned the large subsidy that had to be paid to the railway superannuation fund. He has several times recently referred to the heavy payments that have to be made to the various superannuation funds, none of which are financially sound, and the railway fund is in the worst position of all in this respect. Without the Government subsidy it could not meet its liabilities, and very little is being done to build up a reserve fund. What then is to be thought of the recent decision of the Government to compulsorily retire all Tailway employees who have completed 40 years’ service, thereby adding many thousands per annum to the demand on the superannuation fund, and necessitating larger subsidies from the consolidated revenue. Whether the men referred to are fit for duty or not, is not being considered and dozens of officials m the prime of life—men of 64 and 55 years of age—are now being superannuated. What money the railway superannuation fund has invested earns about per cent., and it will, therefore, be seen that to pay an offioer a pension of £3OO per annum wall require a capital expenditure of £6600. As the fond has nothing this must be met from taxation, and I understand over 40 officers are retiring immediately, and the average retiring allowance will be over £3OO per man peir year.

The superannuation fond was Instituted by Sir Joseph Ward to provide for employees when they become unfit for work, but those of 54 and 56 have not reached that stage, and it is difficult to understand this new move. A section of the employees have been urging it for some time as they were mean enough to desire to obtain promotion by pushing fellow officers out of the service. Suoh means of securing advancement are surely contemptible and should not have been agreed to by any self-respecting Minister or Government apart from the very heavy expense into which the country qs being landed. A short time ago the Post and Telegraph Department, which by the way is in charge of the same Minister as the railways, became overstaffed and hundreds of middle-aged men were superannuated to relievo the congestion. How is the country going to stand the financial strain of such proceedings, and why should the superannuation fond be used to enable politicians to obtain political support or got Government departments out of difficulties due to bad management? It would almost seem as if tho present party are so loading these funds as to justify the withdrawal of Government support, in which case they would very soon become bankrupt. TAXPAYER.