MR. STERLING’S PENSION

Taranaki Daily News, 17 October 1931, Page 9

MR. STERLING’S PENSION

BASIS FOR CALCULATION FINE TECHNICAL POINT INVOLVED STATUTORY PROVISION NEEDED. By Telegrapb.—Press Association. Wellington, Last Night. In a statement in the House of Representatives the Rt. Hon. G. W. Forbes eaid Mr. H. H- Sterling's agreement as general manager of railways provided for his having the right to retire at 3a , years’ service and for his pension to be calculated accordingly. If therefore in- I stead of being ' retired under the arrangements that had now been entered into he served the term of 35 years he would be entitled to have his pension based on 35-tiOths of the . rate of pay on which his pension was calculated. This rate of pay was £3500 per annum. “Mr. S-terlipg having'elected when his pay was reduced by the Finance Act last session to contribute on the unreduced rate in terms of the provisions of that Act,” said the Prime Minister, “tho pension which he will receive on his retirement under the Finance Act is, in accordance with that Act, to be the actuarial equivalent of the ■■■ pension le would have been entitled to receive if .he had retired in the ordinary-course under his agreement. He would have been entitled to retire at 35 years’ service, and clearly this is the pension which is to be the basis of the actuarial calculation that is to be made on his present rc tiremerit. Any other course of action would be a distinct breach of his agreement, and, as I have already said, no Government would do that. “Another clause jri Mr. Sterling s orl S’ inal agreeriient under which he assumed the general managership provided that the Government would promote any legislation necessary to give effect to the agreement. If Mr. Sterling had completed the 35 years’, service then ho would have retired in accordance witli the customary procedure adopted in the case of riicmbers so retiring. If, however, the Superannuation Board had declined to approve his retirement at 3a years’ service, as technically it would be entitled to do, then under a clause I of Mr. Sterling’s agreement, as 1 have mentioned, the Government would be bound to promote legislation to establish his right to so retire. "As thb wording of the Finance Act under which Mr. Sterling is now being retired makes the basis of his pension for the purposes of actuarial calculation the pension that he would be entitled to if he retired as of right, it is necessary now to make the right w iic i he has under the agreement a statutory one for the purposes of the FmanX Act. This is the technical poinu involved. It may be somewhat difficult to explain it clearly to the non-legal mind, but the issue is clear and snriple. “Assurance may be given, without qualification of any kind, that all that is intended to be done in regard to Mr. Sterling’s superannuation on his present retirement is to have his pension calculated on the basis of what he is entitled .to under his agreement, no more and no less.” , , , . \, Mr. Forbes added that before Mr. Sterling was asked to give up the managership of the railways! and assume the chairmanship of the Railways Board, it was felt the position should be made auite clear. For tliat reason Ins assumption of the chairmanship was being delayed. '