PENSIONS FOR MEMBERS

Te Awamutu Courier, Volume 77, Issue 6558, 27 August 1948, Page 7

PENSIONS FOR MEMBERS

ACT CEA.CISED ADDRESS IN WELLINGTON M.P.’s with long service who retire will, in the opinion of Mr T. F. Simpson, LL.M., be eligible to receive, in addition to a retiring allowance of £4OO a year, huge sums as retrospective allowances. This was argued by Mr Simpson when he addressed a small public meeting in Wellington. The crucial part of the Superannuation Act passed last year was Section 77, which he contended entitles M.P.’s to retrospective benefits in addition to a retiring pension. Clause A £ of Section 77-reads: “For the first nine' K .years of his sendee as a member he *

shall receive a retiring allowance at the rate of £250 per year.” Clause B reads: “For each year of his service as a member in excess of nine years the rate of the retiring allowance shall be increased by £25 a year, but in no case shall the rate of the retiring allowance be more than £4OO a year.” Calculating on this basis, which he declared a court of law would uphold, Mr Simpson held that a member with 26 years’ service would be. entitled to an allowance for nine years at £250 per year, amounting to £2250, five years with the increase of £25, amounting to £1625, and 12 years at the maximum rate of £4OO per year, amounting to £4BOO, a total of £8675. Deducting the annual contribution to the fund of £5O per year, this left a net figure of £375. To remedy the position he considered that clause A should be redrafted to cut out the vital words “first nine years” and substitute them with ■

“For nine years’ service as an M.P. etc.” He considered the pension was far too high in comparison with the Social Security rate of £2 5s per week. Mr J. S. Barton, C.M.G., who presided, explained that although he had discussed the matter with Mr Simpson and had read his pamphlet, he was unable to agree with nis views. He was taking the meeting to see that fair plav was given. If Mr Simpson . was correct, he had unearthed something unprecedented in legal and Parliamentary history.