TEACHERS’ PENSIONS

Wanganui Chronicle, Volume 74, Issue 139, 15 June 1931, Page 7

TEACHERS’ PENSIONS

DEPLETION OF FUND “THE CAPITAL EATEN INTO” POSITION BECOMING WORSE BOARD MEMBER'S WARNING AUCKLAND, Juno 13. The serious position of tho teachers* superannuation fund was pointed out by Afr F. A. Garry, a member of the teachers’ superannuation board, at a meeting of Auckland members of the New Zealand Federation of Teachers last evening. Air Garry said it was known that the state of the fund had boon growing worse within recent years, but members of the board had refrained from making the position public. “At the last meeting of the board an alarming statement was submitted by the secretary,” said Air Garry. “For the first time in the history of the fund the capital has been eaten into to meet commitments. Tho state of the fund is going from bad to worse. If the present position continues, in about 15 years, when tho peak of payments is reached, there will be no more capital and tho fund will practically cease to exist. ’ ’

Air Garry said the fund had suffered in more than one way. When it was inaugurated in 1906, the Government accepted liability for tho payment of the retiring allowance to those in the service before that date without the payment of contributions on their part. During tho currensy of tho fund, about 25 years, this liability had amounted to about £750,000, while the amount paid in to tho fund by successive Governments had been less than that amount. This meant that the Governments had not paid anything toward the retiring allowances of the presonf; contributors, who had had to undertake tho liabilitv accepted by tho Government when the fund was opened. The fund had suffered further by the fact that a considerable number of contributors received relatively much more than others. Afr Garry said. It was felt that tho time had arrived when teachers as a whole should know the position of the fund and effective measures should bo taken to make the fund financially sound. It was decided to sot up n committee to investigate the position of the fund and to rennrt to a later meeting.