ADVANCED ' PROVISIONS.

Taranaki Herald, Volume LIV, Issue 13557, 7 November 1907, Page 7

ADVANCED ' PROVISIONS.

(Telegraphed by Our , Parliamentary Reported.)* r • , WBIiLIN-GTON, Novsember 6.

The Public Service Superannuation Bill., appears to be of a very comprehensive character. The definition of -•"public— service" includes the High ;Cdmmissioner's office, the' Legislative branch, ak<l every' department of „ the Government service except the Government Railways., Depa.rtmQnty so much of the Police Department as is included in the Police Provident Fund Act, and [so/.much^of the ,Ejiu«ationjil>epai#ment ■as is included in the Teachers' Superfanhuation Act. "Salary 3 ' does" not in* .dude tflKjwarncea oi*-pjaym«its for over- ? rtime. ,,.. .. ' , . „,^v ,t, t . . The Bill then goes off to provide for 'the. establishment of a public" service superannuation fund,, consisting of (a) the cbntrißutions from' contributors; '(b) contributions by /the , Government, and (c). interest f rom, .invßstments. All 'the monies are to be paid "over to ihe Public -Trustee for inv-estment; A boar,d to administer the fund is also constituted, consisting of a Minister of the !Cro^n, fdur' persons appointed and removable by the , Governor-in-Cjpuncil, two persons elected by the contributora 'from the Post and Telegraph" Department, and three persons elected by 'contributors from other Departments, j jTh© Minister wnen pfresent will act as 1 ;chairman\of tne Board and the Gover- I nor is empowered. to appoint a secretary j of the) Board at a salary. |

"•■ Every, person who, when, the Act corner into operation, is permanently employed-in^iiny o&pacitytiri the- public service,, and anyone who haß been continuously employed in any one or more Departments for. a period of v five years or more may. within the next six months elect to become a contributor to the fund,; and thereupon he will be entitled to .all the benefits. If he does not v come Hh, within that time, he cannot afterwards. eirfcejK.unless he payfc a sum. which will . be , computed by regulations' and oif such 'conditions as the Boardfiays doWh. After the Act comes into force/- everyone who joins the'service will Jiave to be contributor to the fttn&''-"* Temporary employees who have not -yet -been employed for five years may-join the fund after they have completed, five years- continuous service. . . The scale of contributions is fixed as followb : —5 per cent, up to thirty years, 6 per cent, from 30 to 35 years, 7 per cent, from 35 to 40 years, 8 per cent, from 40 to 45 years, 9 per cent, from 45 to 50 years, ten per cent, over fifty

years. The amount of contributions to be made during illness when salary is not paid will be fixed by regulation. When a civil servant, whbse life is insured under the Act of 1893, becomes a contributor, he may "keep the;' policy alive independently of this Act or surrender the policy and have the surrender value, paid to the Public Trustee for investment,, or surrender the policy and keep the surrender value as to" civil servants, who are entitled to 1 compensation on retirement. ' . ' ," Undej- the Act of 1886 the following provisions are made: — The'" right to compensation will not be affected, but the compensation will only be calculated up to the time at which a servant became a contributor, and in respect pi, his salary at that time. If on retirement he accepts a retiring allowance from the fund, he forfeits his right to compensation, and^ if he accepts a /compensation, he forfeits the right to retiring allowance, but his contributions'to the fund will be refunded. If, after he has retired, he dies before he has received or accepted either a retiring allowance or compensation, the compensation will^be paid to, his personaL'representatives together with the amount; of his ' cointributions /to the fund. If he 'dies before the amount paid to him as retiring allowance equals the amount of the compensation to which he would- have been entitled, -tjie difference will be Raid .to tiis family, A male contributor between 40 and 60 years of age,. and a' female cdntribu tor of thirty years* service; who is 50 years of age may retire from the service and be entitled for life to an annual retiring allowance computed as follows : — For every year of service onesixtieth part of his of her annual salary; but in no case shall the retiring allowance exceed two-thirds of such salary. The Board may, however, with, the consent of the, Minister- in charge of the department in which the contributor is employed, extend these provisions to any case, in which contributor's service is: not less ► than thirtyfive years. When a, contributor retires from the service medically \mfit, he* will be entitled to a retiring allowance computed as above. When a contributor has retired from, the service on a retiring allowance and is permanently reappoinfed, his allowance will cease and he must again become a contributor' to the fund. When he subsequently retires, his allowance will be calculated separately in respect of his two succiessive periods of service and of the salary received during those periods. When •& recipient of a retiring allowance re-

turns to duty hi any other than a permanetit, capacity, \i& allowance will be docked to the extent that his salary shall not be more than the salary he received at the time of his retirement. When a contributor retires, he may elect to receive the amount of his contributions instead of a retiring allowance. In computing the retiring allowance, the •mtributor's salary will be .deemed to be the average rate of salary for the previous three years; or, -if his service has not continued for three years,, then during the period of his service. If by reason of age or in- • firmity his salary has been reduced or ike has been transferred to an inferior position, his allowance will be computed on his salary for the three years previous to the reduction. t Retiring allowances are to be paid If V contributor voluntarily retires from the service " before he v is entitled to an allowance, or i£ his .services . are dispensed with, his contributions, will be refunded to him. Provision is also made to meet cases in which a male contributor dies, whether before or after he becomes entitled to a retiring 'allowance. If he' leaves a wife, she wfill be entitled eftheri to an annuity of £18 during her widowhobd or to the amount of his contributions, ?less any sums received during his lifetime 1 . If he leaves a child or children Tinder the age of 14 years, tho fund will pay 5s a week for each child until ■Jit is 14 years of age. If he leaves no widow* the amount of his contributions, less any sum he has received from the fund, or any sura payable in respect of his children, will be paid to his- personal representative or next of kin. , Much the same provisions are made with necessary modifications in respect to a female contributor who dies whether before or after she has "become entitled to a retiring allowance. ' Payments under the Workers' Compensation for Accidents Act will be deducted from the retiring allowance. Gratuities under the Civil Service Act, 1866, to the widow anH children of j a contributor are abolished. The retir- j ing allowance is declared not to be alienable. Provision is also made for a trien- j nial examination of the fund by an actuary, whose report is trfbefsent to each j contributor and laid before Parliament. The asinual contribution to the fund by the Government is fixed at £20,000. It is also provided that, when' the Board reports a deficiency in the fund, the" Colonial Treasurer may make it good out of the consolidated fund. The Act will not apply to •' judges of*^ th^e Supreme Court or the Arbitration Court, persons already entitled to pensions or retirement, persons who are remunerated by fees or commission and not by salary or wage. Transfers from ono branch of theser- i vice to another will not affect butions to the fund. The rate of contributions to the police provident fund or the Government railways superannuation fund will" be the same as. provided by this Bill in the case of everyone who hereafter joins those". j branches of the service. «