asked the Minister for Local Government if he will introduce legislation to require local authorities to maintain a separate fund in respect of employees' superannuation funds; whether such employees at present enjoy the benefit of interest earned by contributions made by them to the funds of local authorities; if so, at what rate; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Local Authority Superannuation Fund.
8.
The introduction of legislation on the lines suggested by the Deputy is not contemplated. Employees' contributions are paid into the general fund of the local authority and do not earn interest. Awards are met from the revenue of the local authority.
The rate of contribution for officers is 5 per cent of remuneration and for servants 4? per cent. These rates are considered not unreasonable and are in line with the rates of contribution in superannuation schemes generally. Employees' contributions meet only part of the liability of local authorities for superannuation awards. The question of having a special fund to finance the superannuation of local authority staff was examined when the Local Government (Superannuation) Act, 1956, was being prepared. It was decided that, owing to the diversity of employments in the local authority service and the different methods of recruitment and conditions of service operating in relation to the various employments, the setting up of a special superannuation fund would not be appropriate. The arrangements for which the Act provides are regarded as being the most suitable in the circumstances obtaining in the local authority service.