642
It is now proposed that the Government should continue to use the money but should cease to pay interest upon it, on the ground that the Government will eventually be called upon to pay in pensions and expenses of management a sum equivalent to the total present capital together with future annual contributions with 3% compound interest added.
4. The Fund has at the present time a credit on 31st December 1902 of $220,000, which at the rate of interest guaranteed by the Government, and with the addition of a year's contributions, estimated at $29,000, would at the close of 1903 be increased to a total of $282,300. The pensions payable in 1907 are estimated at a sum of $45,475 and the expenses of management during that period would probably not exceed the sum of $2,500; so that at the beginning of 1907 there would be a total capital sum of $254,285 which would continue to increase at compound interest.
The Government is apparently of the opinion that the annual expenditure in respect of pensions and cost of management will ultimately equal if not exceed the sum of the annual contributions together with interest on the capital calculated at 2%. The Civil Service Contributors on the other hand anticipate that the capital of the Fund will increase so largely as to make it possible at some future date to revise and to increase the rates of pension; and they are prepared to undertake for themselves the risk that the Government now proposes to undertake, namely that the expenditure may eventually exceed the income.
5. With regard to the second of the Committee's findings it is urged by a majority of the contributors that each officer is in natural justice entitled to the eventual return with interest of that portion of his salary which he has been compelled to surrender. They suggest in place of the existing scheme a scheme of compulsory...
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642
is now proposed that the Government should continue to use the money but should cease to pay interest upon it, on the ground that the Government will eventually be called upon to pay in persions and
expenses of managekoпt a sua equivalent to the total present capital together with future annual contributions with 3 corpound interest
added.
;
4. The Hund has at the present time a credit on AL30
of $220,000, which at the rate of interest guaranteed by the lovernment, and with the addition of a year's contributions, estimated at $29,000, would at the close of 1903 be increasds to a total of $282,300. The pensions payable in 1908 are estimated at a sur of 45,475 and the expenses of management du ing that periol would probably not exceed the sum of $2,500; so that at the peginning of 1907 there would co a
total capital sum of $254,285 wilch. would continue to increase at
compound 1cterest.
The Government is apparently of the opinion that
the annual expenditure 14 respect of pensions and cost of management Alli vitimately equal if not exceed the sun of the annual contributions
together with interest on the capital calculated at 27. The Civil Service Contributors on the other band anticipate that the capital of
the und will increase so largely as to take it possible at some Future jate to revise and to increase the ratos of pension; and they Aro propared to undertake for themselves the risk that the Government now proposes to undertake, ainely that the expenditure way oventuali,
exceed the income.
འ. With regard to the second of the Committen's findings it is urged by a majority of the contributors that each officer is in natural justice ectitied to the eventual return *ith interest of that portion of his salary which he has been compelled to surrender. They suggest in place of the existing schere a schere of
compulsory
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