PENSIONS PROBLEM.

Star (Christchurch), Volume LXVI, Issue 20452, 2 November 1934, Page 7

PENSIONS PROBLEM.

Railwaymen Ask for Higher Payments. (“ Star ” Parliamentary Reporter.) WELLINGTON, This Day. A superannuation problem arising out of retrenchment was reported on by the Public Petitions Committee, A to L, in the House this morning. The Amalgamated Society of Railway Servants, on behalf of a number of railwaymen who had been prematurely retired with superannuation based upon an actuarial calculation, had petitioned the House urging that their pensions should be assessed at the same rate as those of members of the Superannuation Fund, who retire after forty years’ service. The committee recommended the petition to the Government for favourable consideration, and the chairman (Mr E. F. Healv) explained that it would aftect 135 persons and would cost not more than £6OOO per annum, reducible as the annuitants died. A number of members supported the recommendation and referred to the hardships which had arisen through earlier retirement on reduced pension, which in many cases was less than half that obtainable had the full term of service been given. The Prime Minister pointed out that when the economic position forced a reduction in the railway staff men had to be retired. According to the law as it originally stood all they were entitled to was the return of their superannuation contributions. However, the Government introduced special legislation to give these men an opportunity of obtaining a reduced pension, which had to be calculated according to their reduced service and payments. Hundreds of private employers were forced to dismiss long service employees, who went out with no pension, so that he could not agree with the suggestions that the State had inflicted serious hardship. The Leader of the Opposition (Mr Savage) contended that the petitioners' had a strong case for consideration, because they had spent a lifetime in the service, anticipating in due course their retirement on a pension of a certain amount, which would keep them in comparative comfort. Then thev were retired earlier on a much lower scale. Tie considered there should be a compromise possible on the lines of a pension of one-thirtieth of their salary for each year of service. The report was adopted.