SUPERANNUATION FUNDS

Otago Daily Times, Issue 21774, 13 October 1932, Page 11

SUPERANNUATION FUNDS

POSITION OF A.S.R.S

“BREAKING CONTRACTS” Messrs E. J. Dash (president), M. J. Connelly (vice-president), and J. Elliott councillor), of the Amalgamated Society of Railway Servants, who are also members of the Railway, Superannuation Board, made the following - statement in Wellington on Tuesday regarding the superannuation of railway employees:— “We regret that when the question of improving the stability of the Railway Superannuation Fund was . being considered by the Economy Commission, an opportunity was not afforded representatives of Division II of the railway ser- , vice to tender evidence, as had this been done we believe that the findings of the commission would have been more acceptable to .the great bulk of the contributors and duperannuitants. We join with the commission in its desire to bring about • stability in the various superannuation - funds; but we cannot agree to the recommendations involving the breaking'of the contracts with members. “These contracts were honourably en-. tered into years ago, members of the ser-, vice being compelled to pay into these funds, notwithstanding that in many instances contributors with young families could ill afford to do so. It was, however, pointed out at the time that the Government also had a liability in that it would. guarantee . the funds. This part of . the contract has not been complied with; and it is due to this and other factors which are mentioned herein that the Railway Fund has reached its present-position. RIGHT TO REVIEW. . ’ “ If it is proposed now by the stronger party to alteir the terms of the original arrangement, then we say that provision, in the way of an option, should he incorporated in any proposed legislation, > so as to confer upon existing contributors the right to review their position in the, light of the new legislation; “In recommending the extension of the age limit to (J 5 years the commission has, undoubtedly overlooked the fact that there are two distinct classes of employees in the service—namely, those carrying on clerical duties and those engaged in manual work. It should be plain to dll that what might be considered a reasonable length of service for tile clerical staff cannot be) regarded in the same light where the other division is concerned) The ability of members of Division II even to continue until they have reached 40 years’ service or 65 years of age, owing to the exacting, nature of the work, both physically and mentally, is open to question; and the possibilities of their enjoying well-deserved retirement if the cornmis- • ! sion’s recommendations are adopted, is somewhat remote. This is a -serious matter, and it is questionable what retiring benefits, if any, will accrue to the manual workers under such conditions. “NO FURTHER INROADS." " The ■ recommendation of, and the reasons advanced for, the abolition of the cost-of-living bonus for super annuitants in receipt of £IOO annum and under ; are not readily understood, seeing that ; the commission has recommended that those who are in receipt of over £IOO per annum must hot be reduced below that amount. We consider that as the ; Government has already recently reduced'’ the annual maximum the former class will receive, with bonus, to £9O per annum, no further inroads should he made on these people’s pensions. That they might qualify for the old-age pension is not a reasonable argument, as there will be some who will be ineligible by age 1 to receive any old-age pension whatever; “We cannot help contrasting this recommendation to abolish the cost-of-living bonus with the desire of . the commission to repeal section 103 (I). of the Act, which limits to £3OO per annum the allowances that'are to bo paid to members who joined the service after ! 1908. The reason for this recommendation does not fairly state the position, as ' when this section of the Act commences to operate, 17 years hence, N the higher , salary superannuitants will- be placid on , the fund; The amount involved then tfill be much greater than the present figures. These members joined the fund under these conditions; and to grant further concessions to this class, whilst _ with draw- ; ing the rights of morq deserving contri- ■ ;butora, is neither equitable nor desirable; 1 and will place an unnecessary liability v on the funds-—a liability that was never • intended, . '■ “In conclusion, we note that the commission recommended the breaking of contracts in- regard to'the 3 ; per cent/ 'contributors. Whilst reiterating)’'that ! contracts should not be broken we say s : unhesitatingly that if they must he inter--' fered with there is no reason why those • in receipt of large annuities should not be similarly treated and the maximum * pension payable reduced to £3OO per an- '■ num. This would involve a considerable saving to the fund and make possible the retention of the more justifiable benefits to the great bulk of the contributors.”