I move:—
That the Secondary Teachers' Superannuation (Amendment) Scheme, 1952, made by the Minister for Education, with the consent of the Minister for Finance, be confirmed.
I am introducing this Secondary Teachers' Superannuation (Amendment) Scheme in order to give effect to certain agreements made at the Conciliation Council for Secondary Teachers.
It may perhaps be well to give an outline of the history of the Secondary Teachers' Superannuation so that the nature of these concessions will be clear. The first scheme, called the Principal Scheme, was introduced in 1929. It gave power to admit what were called "existing teachers," i.e., those who were serving on the 1st August, 1929, and "future teachers," that is, those whose service should begin later than that date. The scheme was, and still is, voluntary and contributory.
Up to 1950 the annual contribution payable by the teacher was 4 per cent. of his standard salary, i.e., of his basic or school salary plus his incremental salary from the Department, and the contribution payable by the school was 2½ per cent. of the teacher's basic salary.
Under the 1929 scheme and subsequent amendments up to 1949 the principal benefits were: (1) Retirement pension, (2) disability pension, (3) death gratuity.
The principal benefits of the 1951 amendment scheme were as follows: (1) Pension as before, retirement and disability (2) retirement gratuity, (3) improved death gratuity, (4) disability gratuity, (5) marriage gratuity for women, (6) all non-members were given a further opportunity of joining the scheme and existing members were allowed to cover for pension purposes service not already so covered. Members and non-members who elected to join, were given the option of contributing for gratuities. The contribution for gratuities in respect of service prior to 1/8/50 was calculated in relation to each desired year of such service on the basis of 1½ per cent. of the teacher's standard salary for 1950-51. A current contribution of 5 per cent. in respect of subsequent service would cover all benefits. A period of up to five years was allowed for payment of arrears.
The present amendment is designed to grant two further concessions to the teachers, namely: (1) That the rate of arrears in respect of gratuities should be reduced from 1½ per cent. to 1 per cent., and (2) that the maximum time limit for the payment of the arrears in respect of gratuities should be extended from five to ten years.
There were also some minor anomalies in the 1951 amendment scheme which it is designed to remove by the present amendment scheme. The removal of these anomalies is in all cases to the benefit of the teachers.
Because of the double burden of arrears payment for pension and gratuity purposes this proposal of a lesser percentage payment and a longer period for payment has been introduced and I do not think that anyone in the House will quarrel with the reduction of the rate to 1 per cent. and the extension to ten years of the maximum time limit for the payment of the arrears concerned.