The Argus at KellyGang 9/4/1883 (7)
ROYAL COMMISSION
XXVII - POLICE SUPERANNUATION FUND
Final Report - continued
The Police Superannuation Fund threatens at no distant date to become a heavy annual charge upon the consolidated revenue. The fund had its origin in1853, when the present force was organised. Prior to that date a moiety of all fines imposed upon members of the community was given to the informers. This was a considered an objectionable arrangement, inasmuch as it was supposed to encourage the police to lay informations frequently for no other purpose than to obtain a portion of the penalty. It was therefore provided that all such sums together with all fines imposed upon members of the force for breaches of discipline and misconduct should go towards a fund to be called the Police Reward Fund, to be distributed periodically in the shape of gratuities to the deserving members of the force. It was at the same time provided that l0d in the pound should be deducted from the pay of the police for the purposes of superannuation. The latter arrangement was, however, found impracticable. It was believed that the Police Reward Fund would in time accumulate sufficiently to gradually form a superannuation fund. It was then decided that from the Police Reward Fund constables who had served a certain period in the force should receive an extra 6d a day for good conduct. It was intended as only a temporary measure until a more comprehensive scheme was devised. The addition, which was virtually an increase in the pay of some of the men, threatened in time to absorb the entire fund. The extra rate of pay then ceased, and a system of gratuities was substituted. This arrangement was not regarded as satisfactory, and was superseded by the Police Regulation Statute 1873. The amount standing to the credit of the Police Reward Fund at that time was £70,000, which was invested in -4per cent stock, and the interest applied to the purposes of the Superannuation Fund. For the year 1882 the income derived from all sources was as follows: -
Interest on ... ... ... ... ... ... ... ... ... ... ... ... . £70,000
Invested ... ... ... ... ... ... ... ... ... ... ... ... ... ...£2,800
Endowment ... ... ... ... ... ... ... ... ... ... ... ... ... 2,000
Vote in aid ... ... ... ... ... ... ... ... ... ... ... ... .... 5,000
Deductions from police pay, at 2½ per cent ... 4,070
Fines ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 1,553
Total ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..£18,131
The following memo, dated 3rd March, 1883 from Mr W Robertson, the accountant of the Police department, will best explain the position of the fund at present, viz -
POLICE SUPERANNUATION FUND
During 1882 retiring gratuities were paid to the amount of ... ...£9,205 0 0
On 3lst December 1882, there were 140 pensions
current amounting to an annual charge of ... ... ... ... ... ... ... ... 13,500 0 0
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... £22,705 0 0
The income of the fund from all sources £18 434 0 0
A large balance was brought forward from 1881, but the amount at present (March 3 1883 ) standing to the credit of the fund is very small, say £1,300
As the Police Regulation Act does not provide for any increase in the present rate of reduction from police pay (2½ per cent) and states that any deficit in the fund must be met by the consolidated revenue, the last vote in aid (£5,000) will, next financial year, probable have to be doubled.
By a reference to Appendix D, it will be seen that the annual charge upon the fund has been gradually increasing, and it cannot he said to have yet reached its maximum. Judging from the memo above given, the fund is likely to become swamped, unless some other arrangement is made immediately. At present the fund is administered, in accordance with the act, by a board of three members. In the opinion of your commissioners, the distribution of the fund, under existing circumstances should be vested in the hands of the board of commissioners, who must necessarily be in a better position to pronounce upon the fitness or otherwise of members of the force for duty, and who would also have before them the question of expediency of superannuating men, who though unsuited for beat duty, might be utilised in some other capacity, so that the drain upon the fund should not become excessive..
If the Police Superannuation Fund were self supporting it would be unnecessary, if not injudicious, to interfere with existing arrangements but as the income derivable from all available sources is wholly inadequate, it would simplify matters to merge the fund into the consolidated revenue and place police pensioners in the category of those who by law receive retiring and superannuation allowances from the general revenue. In any future amendment of the Civil Service Act, your commissioners re- commend that the measure be made applicable to the members of the police force, especially in relation to any provision that may be proposed for the establishment of a system of state life assurance to be rendered compulsory in all cases, and to be in lieu of the present arrangement under clause 34 of the Police Regulation Act 1873 (No 476)
In concluding our report your commissioners desire to acknowledge the valuable services of our secretary, Mr James Williams, whose industry, integrity, and ability, no less than his fidelity and impartiality, were conspicuous throughout the inquiry.
end
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