RAILWAY SERVANTS’ SOCIETY

Otago Witness, Issue 4048, 13 October 1931, Page 10

RAILWAY SERVANTS’ SOCIETY

A SUPERANNUATION (RIEVANCE

AMENDING LEGISLATION SOL’GH'E. W ELLINGTON,. October 7.

An attempt is to be made by the Amalgamated Society of Railway Servants to have amending legislation! passed by tjie House rescinding portion! of clause 14 of the Finance Act, 1930 r so that the retiring allowances of those members of the railway service who have been compulsorily retired after 30 years” service may be safeguarded. The ’views of the society were outlined in a petition! presented to-day by Mr W, Nash (Hutt). The petitioners stated that a number of members of the society had been compulsorily retired through no fault of their own on completion of 30 years’ service, and would be deprived of receiving the full thirty-sixtieths of their wage by way of superannuation retiring allowance. It was contended that this constituted a breach of contract, and was a distinct hardship to the members. Officers of the society asked that they be allowed to give evidence in order that amending legislation may be introduced, giving the men the right to receive the full superannuation allowance for the number of years worked without any actuarial reduction being made. “ For example,” stated the petition, “ assuming the average wage of our members to be £240 per annum before the 10 per cent, reduction, in the ordinary course of events should a member be retired after 30 years’ service he would receive £l2O per annum superannuation allowance. However, if this were calculated on an actuarial basis the probability is that he would only receive about £7B per annum, if about 7 per cent, were deducted from his allowance for every year of service short of 35 years, as we are led to believe will be done by the Government actuary in these cases. Such a restricted allowance would make it absolutely impossible for any member to support a family or to meet the financial commitments he may have entered into on . the expectation of having 40 years* service or perina-nent employment until he reached the age of CO years.”