PUBLIC SERVICE SUPERANNUATION FUND.

Otago Witness, Issue 2809, 15 January 1908, Page 12

PUBLIC SERVICE SUPERANNUATION FUND.

Th© folio-wing circular has been addressed to members of the civil service: — 1. This circular is forwarded, by order of the. Minister, to place members of the service in possession of euch information «ia is neoeasary to enable them to decide whether they will become contributors to the fund. 2. "Thie> Public Service Superannuation Act, 1907," establishing & superannuation fund for members <x£ the public service, having been passed' during last session, •will come into operation on the Ist of January, 1908. Who Are Eligible. 3. All peisonß who are permanent members of the service oa Ist January, 1908, and all temporary employees of at leaat five years' continuous service are eligible, " except the Crovernment Railways Department/ so much of *he Police Department as is included in 'The Police Provident, Fund Act, 1899/ and so much of the Education Department as is included in ' TSw Teachers' SuperannuationAct, 1903.' " Persons already entitled to pensions on retirement under any pervious act are also excepted. Every person who is ejigible " may at any time witfiixi. six months after the coming into operation of this act, by notice in writing to the secretary of the board, elect to bsoome a. contributor to the fund." After the 30th June, 1908, no on© (except (a) new entrants to the service, and: (b) existing temporary employees of less than 'five years' service, who will be eligible on the completion of five years) will be allowed to become a contributor except on such conditions as the board may determine. " Government service " includes the Bervice of any Provincial Government and of the New Zealand Bailway Commissioners. It is most essential, therefore, that all eligible persona now in the service Who desire to participate should fill in the form attached and return it to me not later than the 30th Juno next. Preservation of . Existing Rights. 4. The rights of contributors -who are entitled, under " The Civil Service Act, 1866," to compensation/ for loss of' office are protected, but compensation ceases to accrue further from the date of becoming a contributor. At the time of retirement (as explained hereafter) the contributor -will have the option of taking — (a} The pension; or (b) the compensation, limited as above, andl return of contributions to fund. If 'he enters upon the pension and dies before receiving as pension the whole of the compensation and contributions, the balance ■will be paid to his representatives. 5. In the case of contributors who are now having deductions made from their salaries under " ThS Civil Service Reform Act, 1886," or " The Post and Telegraph Classification nod Regulation, Act, 1890," such deductions will oease, and the amounts to credit will continue to be invested by the Public Trustee, and will be payable on retirement ox <*t <ae»tii, in addition to superannuation benefits. 6. In the case, of contributors wiho are having deductions znade under " The Civil Service Insurance Act, 1893," the -option will be given — (a) To continue the policy ; (b) to have the cash value of the policy invested independently with the Public Trustee, as in 5; or (c) to tak« a paid-up policy. (The Government Insurance Commissioner will shortly communicate the exact terms available under this option.) Contributions to Fund. 7. The contributions will be on the following scale: — (a) 5 per cent, of salary if age does not exceed 80 years at the time when the first contribution, becomes payable; (b) 6 per cent, if age then exceeds 30 but does not exceed 35; (o) 7 per cent, from 85 to 40; (a) 8 per cent, from 40 to 45; (c) 9 ■per cent, from 45 to B0; (f) 10 per cent, at 50 years. Benefits of Fund. 8. The benefits of the fund are a<g_ follows: — (1) On attainment of pension age (males at age 65, or after 40 years' service; females at age 55, or after 30 years' service) : "(a) A pension of one-sixtieth of yearly salary ;for each year's service, with a limit of fortysixtieths (two-thirds) of salary; (b or the option, in lieu thereof, of a return of total contributions, together with compensation (if &ny). (2) On retirement before pension age (on the ground of being medically un£t for further duty): (a) At any time, a pension of one-sixtieth of yearly salary for each year's service, limited to forty-sixtieths; (b) or the option, in lieu theceof, of a return of total contributions, together with compensation (if any). (3) On retirement before pension age (on other grounds than medical unfitness), a return of total contributions. (If retirement is voluntary no compensation is given, but if retirement "is compulsory, compensation, if any, limited* as already explained, will be added.) (4) At death, (a) At death, before pension entered upon — leaving no widow or children — a return of total contributions to (he personal raoresentative of deceased; (b)

I at death, before or after pension entered i upon — leaving a widow or children— £lß yearly during widowhood, and 6» weekly for each child till 14 years of age; with the option of the return of the total contributions; (c) at dteath, after pension entered upon, a return of tike difference be-tween pension received and contributions paid to the fund, together with compensation (if any). 9. Xt may be- pointed out that while- the sob erne absolutely insures that contributors shall save a certain amount -of money every month, and make* at the same time eotne provision for old age. wife, and 'family, these savings can never be lost, but must in any case 'be returned -undiminLßhed, either to th« contributor or his representatives, in some form or other: (a) On leaving the service at any time, they are returned without any deduction; (b) at death before pension age, the widow has the alternative of taking a small annuity or a return of the whole of the contributions; (c) at death after pension age, the balance 01 contributions and compensation (if any) not drawn, in pensions is returned; or 1 the pension of £18 per annum is pajnable to the widow. In the great majority of cases the con1 tributors will live to become pensioners, and the pensions they will receive will oonua to far mote -than their own contributions could, have purchased, the b&lanoe being provided by the Government subsidy^ Amblitjs M. Smith, Secretary to the Public Service Superannuation Board. \