SUPERANNUATION

Wanganui Chronicle, Volume 75, Issue 179, 1 August 1932, Page 9

SUPERANNUATION

i “TO MEET THE ATTACK” THE ASSOCIATION ACTIVE WELLINGTON. July 2'J. I .Indications that any interference ! with Public servants’ superannuation would, be strenuously contested were | given by speakers at: the annual meeting yesterday afternoun of the Association of Federated Superannuated Pub lie Servants of New Zealand. .It was siated that there bud already been indications of an attempt to interfere with retiring allowances, and it was said that if any further attempt were made the association, would strongly oppose it. Ono speaker mentioned the possibility of carrying the issue to the Privy Council. Mr. Wright said that the association was quite alive to future possibilities in regard to superannuation matters. There had been a certain amount of humour, founded partly on fact and partly on imagination, as to what the Government intended to du in the matter of superannuation arising out of the Public Service Adjustment Commission’s report, which had been presented to the Government. He believed it contained certain recommendations in regard to superannuation, but did not know exactly what they were. All they could do at the present was to wait and see and be prepared to oppose anything if they thought such action was warranted. He thought that there was a very strong case against any attempt to interfere with their rights, and he could assure members that if any such attempt was made it would be opposed to the very utmost. The association was not very strong, but, if necessary, the existing service organisations would combine with them in taking any action that would be necessary to oppose interference with existing rights. By those he meant not only the annuities now being enjoyed, but prospective annuities. With the backing of the Public Service generally, they should be able to exorcise considerable influence. He would like to see the strengthening of the association by an increased membership. Recent Legislation.

Mr. E. B. Willis referred to the recent legislation affecting superannuation on an actuarial basis, and said that it was the commencement of the attack on the statutory rights given to them under the Act of 1908. The Government at that time enforced the law in the matter of contributions, and the fund had been in existence till the present day. The Government was due to give a subsidy each year to the fund on an actuarial basis. Governments had come and gone, and all of them, as far as he knew, had defaulted in their duty to the fund. It was necessary for the members to look after their personal and collective interests, and it seemed from the attitude of the Government that there would have to be a judicial fight; they would have to be prepared to carry the issue through a judicial process, and probably have to take it to the Privy Council. He stressed, the necessity of looking after finance, and being prepared to take action a« soon as the Government infringed a sacred contract. They did not want the Government to take up the attitude of “to hell with agreements.’ ’ Mr. Wright said, that, as far as he knew, there had been no interference with superannuation in any of the British Dominions. Correcting a Mistake.

Mr. Marcus Marks said he wished to correct the popular belief that superannuation funds belonged to the Government, and that the Government could obtain revenue from them. They were not the Government’s funds. When the fund came into existence the Government had very considerable liabilities to Public servants in connection with previous Acts. The accumulated rights were calculated at threequarters of a million. The amount paid into the superannuation funds, with the amount that should have been paid, was merely a liberal rate of interest on the accumulated rights which the Government had been relieved of by the passing of the 1908 Act. He thought the public did not realise that. Referring to men who bad been retired on an actuarial basis, Mr. Wright said that if they had not had the right of getting a retiring allowance on an actuarial basis, they would only have been entitled to a refund of their contributions. On. the actuarial basis they were getting a greater benefit than they would have got had they been retrenched in the ordinary way. Had all those people been put on the fund at the retiring allowance there would have been a tremendous burden. The Government subsidy was payable on the report of the actuary. It was quite true that the various Governments from time to time had not met their obligations. After Sir James Allen had been Minister of Finance the subsidy had not been increased. The Superannuation Fund, unfortunately, had a considerable amount of money to its credit, and the Minister of Finance had said, am not going to pay money into the fund, I will let the next Minister do it.” That had been done ever since, said Mr. Wright. How the Government proposed to meet, the liability, he did not know; the position would have to be faced. In New »Soutb Wales, when they started a new fund, the Government of the day handed to the Superannuation Board Government securities of 5J millions, which was about SO per cent, of the total Government liability.

In reply to a complaint of Mr. Willis’ in reference to discrepancies regarding payments into the superannuation fund and the railways fund, Mr. Wright said that the reason why the railways fund had a large subsidy was that the rail ways fund was guaranteed bv the Government. It ws under no obligation to keep the railways fund actuarially sound; the amount of the subsidy paid from time to time was arbitrary.

Referring to the possibility of lighting their case in the Courts, Mr. Wright said that in anticipation of that he would like to see every superannuated Public servant in the association. It might, be that, the Government would affect superannuation allowances only over a certain amount; it might be that the lot would be affected. His anxiety was that if they were going to fight, they would have to depend on the superannuated Public, servants to find the money. Referring again to the accumulated fund, he said that the capital had been used to pay allowances. Interview with Primo MimsWr. Last session of Parliament they received information that an attempt was being made to reduce superannuation allowances, said Mr. Wright. Very great

pressure was brought on the Prime Minister, the Minister of Finance, and members of Parliament, and Cabinet was in favour of it. A deputation was organised to the Prime Minister. At the close of the interview, the Prime Minister said that he, personally, had very little knowledge of superannua tion matters, “but,” said Mr. Wright, “he told us that the attempt to reduce allowances was a reality; that such a move had been made, but after hearing what we had to say to him he was quite satisfied that our case was a strong one; that he himself would oppose any attack ou our allowances.”

“That was quite satisfactory for the time being,” said Mr. Wright. “Nothing further was done, but the danger is still there, just as bad as ever. We don’t know what is going on, and when members of Parliament meet next session and the Economic Commission’s re

port, is presented, it will open the ■whole thing again. If we are prepared to meet the attack when it is made, that

is as much as we can do at the present time; and that is what we propose t<> do. to get ready. When we call on you for substantial financial help we want you to respond: and you would be very foolish if you didn’t.’’

Mr. Marks said the public should know what the position of supcrannuitants was. Till the public was made aware of what the real position was they would always be under the impres sion that the Public servants wore try ing to exploit them. Nine out of ten men thought that the Government was paying superannuation out of Govern rnent fund®.