THE WAIPA POST. Printed on Tuesdays, Thursdays, and Saturdays. "THURSDAY, 11th AUGUST, 1932. "THE SUPERANNUATION FUNDS.

Waipa Post, Volume 45, Issue 3215, 11 August 1932, Page 4

THE WAIPA POST. Printed on Tuesdays, Thursdays, and Saturdays. "THURSDAY, 11th AUGUST, 1932. "THE SUPERANNUATION FUNDS.

rO has been obvious for some few year* that the superannuation funds —three in number—which have been established for the benefit of members of; the public service are actuarially unsound. Huge payments on behalf ' * of|the Government would be necessary to* place the funds on a footing that w?uld satisfy the requirements of the actuary. To suppose that the Government could make any such payments in! present circumstances is out of the question; and, in the meantime, the condition of the funds is being weakened by the fact that increasing numbers of public servants are being forced on to them. Ten years ago . the amount of the annual contribution %'. tor two of the funds substant : ally exceeded the payments to beneficiaries. : In~ths calendar year 1931 the contributions to the Public Service Fund totaled £248,020, and the annual value of the allowances that were a charge on the fund was £163,355. The con- • tributions to the Teachers' Superannuation Fund in that year were : £2(6,391, and the amount paid in allowances was £74,315. . The contributions ' to( the Railways Superannuation Fund ;. -{always financially the mostunsatis--i .factory of the funds—were £135 ; 661, and the payments to beneficiaries were ; £138,620. The balance of contributions - oyer payments in the other funds went /•with' the interest on. investments and * the Government subsidy to swell the accumulated fund. In the last year !' for which particulars have been pub- ":'::■ ;lished the payments in each of the i -'-;'. iunds exceeded the contributions. The :• contributions to the Teachers' Fund fy were £143,392, and the payments were h. £235,902'.- The Railways Fund re- ? ceived £170,686 in. contributions, and ''"■'-. the allowances pa'd-. were- £206,045. Each of the funds is now eating into the capital in order that the benefits ' to retired members may be paid. No -; elaboration of the position is necessary in order that it may be realised • that an early investigation of the funds is imperative in order that the . effort, may be made to put them on a \'-\ sounder footing. There is, of course,

another side to the question. The recipients of superannuation allowances are, with one exception, the only class of people in the country with regularly paid incomes that has not been subject to any compulsory " cut" and it is impossible to suppose that their immunity is not viewed with a great deal of disfavour by those who have suffered a reduction of their incomes. To the Government has been ascribed by rumour an intention to effect drastic reductions in the amounts of the allowances. The Prime Minister has, however, relegated this report to the sphere of " pure speculat : on." One suggestion that the maximum allowance should, with retrospective effect, be reduced to £3OO, is hailed with savage delight by some. All reasonable people will regard any such suggestion as grossly unfair and as one tnat would involve an outrageous violation of a contract. But it may be surmised that the feeling will be generally entertained on the part of the superannuitants that an adjustment of their contracts, appropriate to the circumstances of the country, might reasonably be affected.