SUPERANNUATION

Wanganui Chronicle, Volume 75, Issue 290, 8 December 1932, Page 5

SUPERANNUATION

MORE EVIDENCE HEARD PALMERSTON NORTH PROTEST | WELLINGTON, Dec. 6. A statement on behalf of superannuated public servants of Palmerston North was given to-day before the Select Committee of the House of Representatives which is hearing evidence in connection with the Government Superannuation Funds Bill. 1 ‘With due respect, we urge that’ Parliament cannot but confirm our rights to the continuance in full of the allowances we have been receiving,” it was stated. “We view with grave concern Jibe growrn of the idea that contracts may readily be broken. They are made, as were ours with the State, with full consideration of the circumstances and possible variation in the condition of affairs during the period of their duration, and we feel that, apart from any variation agreed upon for mutual benefit by the parties to them, they should be faithfully carried. out both in spirit and to the letter. That they should be regarded js capable of being fundamentally caned at the behest of one of the parties to them is to make them nugatory. We submit that adequate provision was made for the maintenance of the superannuation funds in a sound, condition, and that if to-day they are not in such condition it is not due to any fault of contributors or superannuitants. That we did not, when we learned that Parliament had been advised by its responsible officers of the need of strengthening the funds, harass those responsible by insisting upon immediate action being taken is to our credit; we believed fully that adequate steps would he taken in due time and relied absolutely upon the guarantees embodied in the law. Estimate of Shortage “We believe that the National Expenditure Commission’s report has caused, a widespread belief that the funds are in a much worse position than is actually the case. The stressing of actuarial deficiencies has led to this, but from figures given in tho report it would appear that £3,500,00U is a fair estimate of tho actual shortage in funds arising from causes set out therein —causes for which superannuitants and contributors can in no way be held responsible. Even if there is this deficit the boards have been able to carry on and accumulate funds steadily increasing from: Public Service Fund, £1,717,000 on December 31, 1921, to £2,917,000 on March 31, 1931; Teachers’ Superannuation Fund, £682,000 on December 3.1, 1921, to £1,272,000 on March 31, 1931; Railway Superannuation Fund, £464,000 on * March 31, 1921, to £1,454,000 on March 31, 1932. A total increase from £2,863,500 to £5,643,000.

‘‘The Bill proposes a £1 for £1 subsidy on contributions. Taking the figures for March 31, 1931/ these subsidies would be: Public Service Fund, £270,316; Teachers’ Superannuation Fund, £143,392; Railway Superannuation Fund, £142,239; * a total of £555,947. Note; Bail way figures for 1932; those for 1931, not available, would probably strengthen the argument.

“This would suffice to pay interest at 4| per cent, on the etsimated .shortage of £3,500,000 and leave £398,447 to strengthen the funds, an amount slightly more than tho total £39/,467 paid for the year ending March, 1931. These figures show tha 1 admitting the Government's bounden duty to provide as soon as possible for placing the funds on a sound footing and the need for providing in the meantime for the prevention of further “drift,” the position Is by no means desperate/’