Page 41 - Group Insurance and Retirement Benefit IC 83 E- Book

benefit other than that due to an increase in the 'average salary ' at retirement. The Bill

provides that such service performed after the optional retiring age (60) shall secure also
an increased proportion of such

12 The Development of Public Superannuation Schemes ' average salary '. There will be
a resulting tendency to defer retirement, and this will probably tend to reduce the ultimate

cost. The second innovation is the establishment of a separate widows' and children's
scheme, on a contributory basis, half the cost being borne by the Exchequer. The

member's share may be either by way of contribution (1¼% of salary), or by abatement

by one-third of the normal lump sum at retirement or of the death benefit. The scheme
will be compulsory for all future male civil servants; but entry may be deferred until

marriage, when arrears will become due as from the commencement of pensionable

service. Where the risk subsequently disappears by widowerhood, contributions will
continue until retirement, when there will be a refund of contributions in respect of the

period of widowerhood or, if the abatement of lump sum method is chosen, there will be
a corresponding adjustment.

(b) Local government (general)

Except for certain very early local Acts, the schemes have throughout been contributory

and funded, subject to quinquennial actuarial valuations. Each local authority can (subject
to a minimum membership) establish its own fund, or authorities can combine.

(i) The Local Government and other Officers' Superannuation Act, 1922, was the first

general Act. This was permissive in its application, but was very widely adopted by
authorities. Once adopted, it applied only to employees ' designated ', individually or by

classes, by special resolution of the authority. Contributions were at the rate of 5 % by the

member and 5 % by the authority. The compulsory retiring age was 65. The standard
'pension only' benefits applied, i.e. at 1/60 per completed year of contributing service,

maximum two-thirds, based on the average remuneration over the last five years of

service, subject to 10 years' qualifying service. On enforced retirement before qualifying
for pension, or on death, contributions were returnable with compound interest ; on

voluntary resignation they were returnable without interest. There was also provision for