1936-08-26 — Page 3

THE HONGKONG TELEGRAPH.

WEDNESDAY, AUGUST 26, 1936.

WIDOWS' AND ORPHANS' PENSIONS

Colonial Service

Recommendations CONCESSIONS TO BACHELORS

IN CIVIL SERVICE

The "Telegraph" has received the bulky report of the Committee on Pensions to Widows and Orphans of Officers in the Colonial Service, and on Colonial Provident Funds. The report was presented to Parliament, this month. The

with Sir committee,

K.C.J., Watson. W. Alfred Government Actuary, as chair- man, were appointed in May, 1934, with the following terms of reference:

"To review the existing arrange. ments for the grant of pensions to the widows and orphans of offers In the Colonial Service: and to make recommendations as to any changes in the present polley in this. matter which Colonial Govern- ments should be advised to adopt, with

special reference to--- (6) the classes of officials to be

covered;

(b) the benefits to be afforded; (c) the nature of the financial

provisions to be made,"

i

ak superannuation The system beneflls for permanent State servants well-established themselves is a

feature of Government service, and we feel entitled to assume that it will not be challenged or disturbed.

"LOCAL CONDITIONS"

It is however reasonable to argue at an official's domestic affairs are matters for his personal arrangement, with which the State is concerned no inure and no kes than it is concernAKË of with the domestle

arrangements

tran

Any etizens not in its employ, or other employer is concerned with the domestic affairs of his employees.

Whether, then, the provision of

: Widows and orphans' pensions in respect of officers of a government service is desirable is a matter of ex- Service

Su far aa Pediency, to the drekded negarding to the relevant dretumstances

of

After reviewing the history of willows' and orphans' pensions

a Colmy is cowerned, we consider system, and discussing the differe general mass of the public service Fund and a that each Colonial Government must enen between

deeld for itself, in the light of local "Seheme," the report says:

"We are actuarially advised that jour dillons, whether the provision of

reason for tunicing that sucht pensions is expedient, and, if There is Colonies which have set up Schemes upon what terms,

There , however, common to all have been subsidising them to a con

the Colonies a class of oficial to extent itar Was siderably less

In this connee-whom other than purely local en originally intended. tion we are net referring to the patentSklerations apply, namely, the class fact that in the early years of of officials recruited from outside the Schome the contributions received are Colony itself, and for the mod part in great excess of the benefits paid from the United Kingdom.

Such excess in efset fater an by the excess of benefits over contribu tions which the taxpayers will have

out.

review

1

DIFFERING OPINIONS

NOT A FREE AGENT

Committee's

for

Future

Important Payments

HOW PENSIONS HAVE MOUNTED IN H.K.

*Civil Servants

Total.

$ 208,320

Police Widown & Orphans

1020

$ 198,820

$ 45,000

$ 30,500

1021

216,000

50,000

40,000

312,000

1922

268,805

60,020

54,030

303,111

1023

293,000

05,703

60,093

441,003

1024

353,800

115,000

£6,000

534,800

1025

369,000

113,700

77.580

500,200

1928

373,000

127,000

$0,000

591,200

1037

433,330

143,543

00,050

075,903

1928

512,403

101,674

130,000

1020

495,000 103,000

169,000

1030

535,000 213,000

185,000

1031

705,000

275,000

248,000

*833,079 *847,000 *913,000 *1,228,000

1932

1,088,000

370,000

250,000

1033

1,300,000 350,000

244,000

1934

1,000,000

330,000

200,000

3935

1,450,000

370,000

250,000

†1930

1,250,000 320,000

240,000

1,708,000 2,004,000 2,000,000 2,070,000 1,010,000

Total Pensions Faid since 1920, $17,170,180. *Includes a total of $115,000 Death Gratuities, †Estimated.

REPORT OF COMMITTEE

OF INQUIRY

Important Recommendations

Made

Moreover, such an ofeer is at a

disadvantage in other ways as can- paced with an ofleer working in his

own home country.

nut

paid into the Fund.

The

-

vanced in support of this particular suggestion, and we may observe that those responsible for the proposals appear to have overlooked the fact that if and when a bachelor contribu tor does marry, his bachelor contri- bullons generally buy in appreciable part of his total registered pension."

AND THE POLYGAMISTS And of much-married tien: "A number of Goveruments, Asso- ciations and representative officials suggested that officers who were not Lame restricted by law to one wife at should not be allowed to contribute. Where under existing arrangements such officers do contribute, only the Arat or principal wife is provided for, and we do not consider it necessary to recommend any departure from that practice so far as local Schemes of Funds are concerned. The matter Is mainly one for decision in the light of the particular conditions obtaining in the Colony."

THE RECOMMENDATIONS

The Summary, of Recommendations alone runs to seven pages of the rt- port, and may itself be summarised as follows:

As regards the unified branches of the Colonial Service and other grades of corresponding status, appolpliments to which are made by or with the ap- proval of the Secretary of State, the system of local or regional Schemes should be discontinued in the case of new entrants to the Service, and a Central Fund should be established. to cover all such officials irrespective of Colony.

The membership of the Central Fund would be based upon a list of posts comprising the offices scheduled in the various unified services and such other posts as the Secretary of State might from time to time direct,

The SALITAN rates of contribution

average family responsibilities, to, have control of the investments and provide adequately for the future be responsible for the general ad- uf his dependants.

ministration of the Fund, the actual management of which should be in the hinds of the Crown Agents for the Colonies under regulations made should be paid by all members of the by the Secretary of State. The cost Central Fund and the same tables of of administration, which should be benefits should apply to them. GOVERNMental oblIGATION

be borne relatively small, would

The Government subsidy should Fund, the

take contribu- There are obvious arguments in: by

the form of a percentage of the Colonial Governinent tons of officers would be collected by officer's salary, paid concurrently with favour of a

Addi- affording assistance to an offlcer who the employing Governments or by the fleer's own contributions. is so cut off, by the nature of his De Crown Agents, by means of desitional voluntary contributions by the work, from many of the opportualties ductions from salary or pension, and leer should not be allowed.

The nature and scope of any provi- ordinarily enjoyed by persons worli- The necessities and the circum in their home country of providing

Pacography 80 discusses an import-sion to be made for benefits to the widows and orphans of officers not to find. A Scheme to which stages of an officint of this class do for the future of their families with aut print

We have considered the question included in a Central Fund unst il periodically not materially differ according to the

ninimum of

expense and diflculty. actuarial

he Is serving: It is true that in some of the whether it is practicable, having re- necessarily be a matter for considera- applied, may operate to the serious | Colony in which

tion by the individual Governments wherever he may be employed, the Colonies, as in the Home Civil Servies, gard to differences of climate and disadvantage of the contributors."

fundamental consideration is that he there is

system under whles conditions of service, for uniform concerned. is employed away from his home sugeatuities may be faid to the estate of tables of benefits and uniform rates SIX PER CENT, INTEREST

New benefit tables at 6 per cent. an officer who dies in the Service, and periods of contribution to be laid Sir P. Cunliffe Lister's circular roundings, from his family ties, and

retirement. down for the members of the Central interest should be incorporated in the despatch and questionnaire of Aug. from the country where his deped and to an officer on

laws governing the Schemes (with Fund. 1934, are referred to. It was not tants may be expected to live in the Such gratulties, however, are

oficer event of his death. Such an

It is clearly desirable from the point provision to safeguard existing mein- large relatively, to ordinary, family May, 1935, that the replies were must normally expect to maintain needs and cannot compare with the of view of simplicity and administra-bers who might thus be adversely complete.

certainly his children and possibly benefits of a Widows and Orphans ve convenience that this should be affected).

For

The age of cessation of contribu- Fund or Scheme. celether, replies

arranged if possible, and we have from 35 Governments, 33s his wife in his home country

periods which IR the uggregate

We wish, therefore, to recont our con

come to the conclusion that it can be ton should coincide with the normal Associations, and 37 representative

view that, whatever Q Colonial arranged without doing violence to age of retirement. officials. On examination of the represent a considerable part of his

Only those marriages contracted Government may decide as to the ex-actuarial principles or to the interests repites it was apparent that not

The circumstances naturally vary dld the Various Colonial

with individuals, but, broadly speak-elency or desirability of providing of the Governments or the officials during the period of payment of con-

arrangemicals

tribution should give a title to benefit, und concerned. Governments differ in their views

It has to be remembered that, wide If a pensionable officer retires on tion impose heavier relative expend employees generally, it is still under as are the differences to which we account of -icalth before he has reply was received from a parfleu-ture upon a Colomat than upon

un obligation to consider the position have referred, our proposal concerns served the qualifying period for pen lar Colony, the Associations and Home civil servant-g

and the needs of those of its otticia's officials who form; for practical pursion, and dies within two years-of- offietala ofien held widely different At the same time a Colonial civil whose homes are outside the Colony.ncsen, a homogeneous class of select the date of retirement, his widow opinions as to the merits and des servant has very little liberty to adapt Another important defect in the ed lives. Generally speaking, they should receive the full pension for merits of existing provisions."

his mode of living to his private dr existing arrangements to which we are men of similar race, antecedents, which he was registered at the date of Olber extracts from the report.cumstances and resources. He is desire to direct altention at this stage social standing, and habits. Differ retirement. which runs to 65 printed pages, are seldom free to choose, for example, relates to the position of an official ences, in the climate and amenities of The refund to be granted in the as follows:

In what kind of house he will live and who is transferred from one Colony the Colonies in which they serve be case of bachelor who dies or leaves. The first question that arises is on what kind of scale. He is bound to another. whether the provision of State-akled to take his share in social functions pensions for the widows and orphans and in giving hospitality all of which of Sinic servants generally should be

means expense. regarded as a necessary or desirable feature of the organisation of a public service.

only

were

nial

career.

for

widows

but that, where more than ouring. famly maintenance and educa- | orphans' pensions in respect of s

We feel bound to answer that such provision cannot be regarded as neocssary in principle.

ANTISEPTICA

|

"ACCIDENTS OF TRANSFER"

of re-

uni-

taken into account, we do not think interchangeability in the Colonial men are stics of mortality

When these considerations are that the prevailing scales of salary in the Colonial Service are such as to leave much margin for an officer without private means, and with

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cause

taken as offset to some extent by the Scheme or Fund from any cause differences in leave conditions.

should be his own past contributions The regulations affecting

terest at 24 per cent. We understand that the principle of of netive service and the the period with the addition of compound in-

tirement

to m

REFUND TO WIDOWERS The refund to be granted in the Service has long been recognised in form. The practice, and that it is the polley of show that there is actually much less case of a widower without pension- is Majesty's Government to foster difference than might be expected in able children who dies or leaves the interchange in the Interests of the the factors affeeling pension tables Scheme or Fund from any Service and of the Colonies as a for Europeans in the healthier and should be all contributions (with com- the unhealthier Colonies. In fact, whole,.

pound interest at 24 per cent.) pald of the na few officers of the comparatively "What is needed is a general class with which we are dealing are cesser of liability

him since the death of his wife or the by

in

respect of his arrangement which will secure an employed outside the officer's position Irrespective of the fewer stilt, spend their pics, and chlidren whichever be the Inter.

omictal

If un omcer is dismissed from the careers in the non-tropical Colonies.

nies. Service, all contributiona

should We consider, then, that it would

a bachelor or widower without be reasonable to construct for the pensionable children should receive a members of the Central Fund a single refund of his contributions without set of tables providing the same interest, subject to the deduction of benefits in return for a given contri- any sums owing to the Government; bullon, irrespectively of where the and a mareled man or widower with oflcer concerned might happen to be pensionable children should remain registered for the pension earned by serving.

is past contributions,

No widow whose husband dies within twelve months of the marriage Regarding the inclusion of non-without issue of such marriage should Europeans, the report states:

accidents of transfer." The report recalls the raising of the guaranteed rate of interest from 6 per cent to the "exceptionally high rate of 8 per cent." for which it says there is now no Justification.

It is pointed out that the system of refunds whereby the only return made to a bachelor or widow without pensionable children on leaving the Fund is

is one-half of the total past con- tributions paid by a bachelor, or one- half of the contributions paid by, fi widower since the Fund censed to be- come liable for benet on bis behalf leaves a considerable margin with the inendations are made by which the profits arising on this arrangement as to bachelors and widowers will be substantially reduced in the interests of these classes of contributors.

NON-EUROPEAN OFFICERS

PROVIDENT FUNDS

The repiles to the question whether be entitled to pension except with the for widows' and approval of the Governor in Excca- arrangements

tive Council or other controlling Fund, a matter as to which recon orphans' pensions should include all authoritysonable age for

employees of the classes concerned, The

beys irrespective of race revealed consider should be raised to 21. able divergencies of

of opinion, mainly tion of the Colony from which the according to the geographical situa- reply came. In some Colonies the stage of developments of. non- Section V of the report deals with Europeans is much higher than, In Colonial Services, and its aims and others; and their marriage customs advantages, pnd maltes the primary may differ considerably. recommendation:

UNIFICATION

(a) As regard the unified branches of the Colonial Service, and other grades of corresponding status, ap- pointments to which are made by or

with the approval of the Secretary

the

of the member's salary should be Equal contribullons of 5 per cent.

made by the member and by the Government.

The Government bonus and interest thereon should be paid to the officer After carefully considering the he leaves on account of ill-henith, views put forward, we recommend satisfactory completion of contract, that, on the assumption that the abolition of office, reaching reuring contract by age, or determination unified services will be predominar with the consent of the Govern antly European, the Central Fundment (not involving dismissal). It should cover all members of those dies in service, it should be paid- services; In effect, the post and not

to his estate. the race of the officer who holds it should be the criterion.

of State, insurance through nystem of local or regional schemes

If a member of a Provident Fund should be discontinued in the case of

leaves the Service in any circum- new entrants to the Service, and the On the question whether local stances, he should receive his own Colonial Governments should be in Funds or Schemes should be framed contributions with Interest less any vited to co-operate in the establish with or without racial distinctions, debt due to the Government. ment of a Central Fund to cover all we feel that, in view of the varying, If a member of a Provident Fund future members of these branches and conditions in the several Colonies, nots dismissed the Service, or resigns grades, irrespective of Colony; general principle can be laid down without giving the prescribed notice (b) as regards other classes of The matter is one which should be or having the pervalssion of the officials, the arrangements to be made, determined, in respect of each Colony, Government, all or part of the bonus if any, should be determined accord in the light of the structure of the and interest thereon should be with-

ing to the circumstances of the Colony concerned.

A CENTRAL FUND

pubile service of that Colony.

THE BACHELORS

held, as the Government may direct,

should Female contributors eligible for Government contributions,

be

Of the proposal for a Central Fund It is stated:

The Central Fund which we en- "We are unable to accept the pro-tian three years' service. visage would be constituted by Actposal that bachelors should be exempt, Temporary withdrawals up to one- of Parliament and vested in a Board The more generous refund for half of the depositor's compulsory of-Management appointed by the bachelors which – we propose de- deposits and bonuses should be allow- Secretary of State. The Board should i molishes most of the arguments ad- ed in curtain circumstances,

Then there is the, question of with Interest, on retirement on bachelors:

Recount of marriage after not less

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