WASTE DEPLORED

Otago Daily Times, Issue 27229, 4 November 1949, Page 3

WASTE DEPLORED

RETIREMENT SYSTEM NEED FOR ELASTICITY “ While recognising the needs of a retirement policy in Government service this conference deplores the economic waste in skill and experience under the present compulsory system of retirement. The conference holds that the immediate re-engagement in the public service of retired members is evidence of the need for elasticity of policy, and this conference accordingly recommends that, at least while the present shortage of labour exists, there be an optional extension of up to five years.” ' This motion was sent to the Prime Minister, Mr Fraser, by the Associated Chambers of Commerce. It was conceded, the covering letter stated, that in fairness a reasonable policy of retirement was necessary to permit promotions for those who had not reached senior positions. The chamber submitted that something better than the present uneconomic waste of man-power was needed. In reply the Prime Minister stated that the general employment position and the shortage of labour relative to opportunities offering were taken into account by the Government in applying a retirement policy. The implication in the resolution that all public servants were compelled to retire on completing 40 years' service, irrespective of age, was not the case. Officers who had contributed to the superannuation fund for that period had a right to retire. The general rule was that officers who were contributors to the superannuation fund and had not already exercised their right to retire, should do so when they reached the age of 60, combined with 40 years’ service, or at the age of 65 regardless of superannuation service. “ It is recognised, moreover, that good service can still be given by many who have retired on superannuation and all departments give opportunities for reemploying such persons,” Mr Fraser stated. “In 1947 legislation liberalising the conditions under which superannuitants could be re-employed, was promoted, their pensions being no longer reduced on account of their re-employ-ment.”