NEW SOUTH WALES.

POLICE ILEWARD -4NU SUPERANNUATION FUNDS. (REPORT OF TIIE INSPECTOR-GENERAL OF POLICE RESPECTING.)

Tlio Inspector-General of I'olice to The Principal 'Under-Secretary. Sir, Police Departnient, Ins1,ector General's Office, Sydney, 16 December, 1885.

1 (lo myself the honor to lay heforc the Colonial Secretary, for consideration, the followillg licport respecting the Police Rowarcl and Superannnation Funds.

These funds were primarily established 11y Act of Parliament (the 14 Vic. No. 38), the 28th section of which provided that if the revenue of the funds should prove inadequate to meet the charges thereupon the llalance should be made good from the General Revenue. The funds so formed were continued by enact- lrtent, the 25 Tic. No. 1G, which contains no provision, however, for meeting any deficiencies which may rise in administering the fui~ds.

This omission, I submit, was scarcely justifiable, as tlle funds bore for many years charges for pensions on account of l~olice service anterior to the passing of the first Act i n 1650, during which there \rere neither contributions from the police pay nor other sources of revenue to meet the charges.

The existing condition of tllc fulicls has been lately reported upon by the Auditor-General, whose fi;ures and opinions substantially agree with those subniittecl to the Government by me from time to time. A1q)enclecl hereto will be founcl a copy of tlie Revenue Beport.

Not~vithstandirig the present apparently prosperous state of the funds-the income of which exceeded the expeilcliture for last year by .£4,805-it is extromely probable that when heavy claims fall upon the fund, by the superannuation of numerous members of the force who are either now entitled to pension or

'11 shortly become so, the inco~nr will not be found adequate to meet the annual charges ; moreover, the lieties of penalties upon which the fund is largely clrpenclent may not, fro111 various causes, continue a t esent rates.

The Civil Service has from time to timc received considerable sulns from the public revenue in aid of tue Superannuation Funds, hut the police have derived no such assistance,--the moieties of penalties referred to in the last paragraph bcing illerely sums to which nlenibcrs of the force would have themselves been entitled to claim h:td they not been diverted to the Polioe Rcmarcl Fund by the 24th sec. of the 25th Vic. No. 16.

I n addition to this, the police have for scvcnteen years voluntarily contributed an additional 1 per i t . beyond tho deduction authorized by the Act ; thc sum so subscribed having, doubtless, saved the funds mi insolvency.

Thinlring i t proper that the members of the Policc Force should be madc fully acquainted with the 11nancia1 conditioli of the Police Rewarcl and Policc Superannuation Funds, I recently issued, with the Colonial Secretary's sanction, a circular, of which I apprncl a copy, together with a copy of the Treasury Statement of Accounts for 1884, and the Auditor-General's Rrport.

The result of the question I put is that 901 members of the force are i n favour of gratuities being awarded to men who voluntarily resign after fifteen years' service, without medical certiflcate of physical or mental incapacity for furthcr service, 512 being of a contrary opinion.

A s a matter of course, legislation would be necessary to sanction such a scheme if approved by the Colonial Secretary. It has iuuch t o recomirlend it, as it is hard that a public servant who has passed fifteen of the best years of his life in a trying service, durinq which he has contributed 3 per cent. of his salary to the fund, should on volnntary retirement dcrive no benefit therefrom.

Though such cases have not been very numerous, there would, I think, bc many who would find it to the advantnge of themselves and their families to settle down to some other occupation, and to whom the assistance of a gratuity from the f ~ u l d would he of material advantage.

The se rv ic~ woulcl also gain by she appoilit~ncnt of young and vigorous men to replace those who, a t forty-five, cannot bc considered as active as tlle nature of their duties requires.

Many years ago I veiiturecl to suggest that a Bill should be introduced into Parliament to vary the present schenle of superannuatioli and administration of the funcls, and I still consider i t extremely advisalde that legislation sl~onlcl be obtained, on substantially the same lines as I then recommended, and which I now repeat as concisely as possible.

That the present scale of pensions should be altered, that is, as affecting men in future appointed t o " 3 service, but protecting the inchoate rights of those now serving.

1 G6- The

[255'3 copics-Approximate Cost of Printing (labour and material, 514 7s. Gd.]

The present scale of half-pay after fifteen years' service, two-thirds pay after twenty years' service, three-fourths pay after twenty-five years' service, full pay after thirty years' service. i-. in my opinion, far too liberal, the rates being considerably higher than in any other service in the world.

It also works inequitably in several respects. For the third period the fraction is wrongly calcu- lated. Instead of three-fourths it ought to be five-sixths. Moreover, dividing the service into periods of five years has many disadvantages. It is unjust to give the same pension to a man who has only served twenty-five years as to one who has served twenty-nine years ; and it is found that men naturally struggle on when quite unequal to the performance of their cluty, in order to complete an additional five years' service.

I f a Bill be prepared, I think the opportunity should be taken to rectify these unsatisfactory conditions, so far as they affect the present members of the force.

This should, I suggest, be effected by simply fixing the pension as at present at half-pay after fifteen years' service, and thereafter one-thirteenth of the annual rate of pay received, for each additional year of service completed up to thirty years.

I n any case the erroneous fraction of three-fourths pay after twenty-five years' service should be corrected to five-sixths ; also to fix the contribution to the fund a t 3 per cent. per annurn.

I also think it worthy of consideration whether power should not be given to the police upon reaching fifty-five years of age to retire on pension without medical certificate. The present age is fixed at sixty; but as no candidate is appointed to the force unless he is nnder thirty years of age, I think that at fifty-five, after service varying from twenty-five to thirty-fire years in such arduous employment, a police officer can rarely be considered fully equal to the discharge of his duties, and further that he has then fairly earned the provision of a moderate pension on retirement.

The immense discrepancy also between the financial value of a gratuity of eighteen months' pay for fourteen years' service and a half pay pension after fifteen years is apparent.

My proposition is that the gratuity should be calculated and granted on the same basis as hitherto, up to and including nineteen years' service, and that a pension should not be granted until after twenty years ; to be then fixed at half-pay, and thereafter an additional one-fortieth for every further completed year of service.

This scale would in my judgment be reasonable and equitable, and I believe I am warranted in stating that it is more liberal than that granted in any other similar service.

There is, I think, a reasonable hope that in the course of a few years the fund would be self- supporting if properly administered on the above principle; but in order to give a feeling of absoIute security to members, 1 strongly advocate a clause being inserted in the Bill similar to the 28th section of the 14 Vic. No. 38, providing that the deficiency (if any) should be met from the Consolidated Revenue.

I have taken the opportunity to obtain a statement of the ages of members of the force, a summary of which I attach.

From this table some valuable calculations might be made, if thought advisable, regarding the future finaneial position of the funds. I also append a return showing the length of service of members of the Police Force, which would be of assistance in the same direction.

I have the honor to be, Sir,

Your most obedient servant, EDMUND FOSBERY,

Inspector-General of Police.

Return showing length of service of members of the Police Force-year 1885.

Under 6. 1 1 to 10. 1 10 to 15. 1 15 t o 20. 1 20 Lo 26. 1 25 to 30. I Over 30. I Total.

Statement of the ages of members of the Police Force.

Police Department, Inspector-General's Office, Sydney, 17 September, 1885. E n m ~ member of the Police Force being interested in the Police Reward and Superannuation Funds, I think it proper to circulate for their information a statement of the revenue and expenditure for last year, and also an extract from the Auditor-General's report on the subject.

It Kill he seen that the total amount paid for pensions to superannuated members of the force amounted to £8,223 ; for gratuities, £1,939 ; for pensions to widows, £576 ; for gratuities to widows' children, &c., £705,-there being a balance of £1,M5 in favour of the combined funds on the year's transactions, from which, and previous balance, £5,000 was invested in debentures, making a total of investments for both funds of £30,200.

As, however, there are a good many officers and men who, from long service and age, wiIl soon become entitled to pensions, it is r e v doubtful whether the funds will long continue in this healthy condition.

KO doubt their solvency to the present date has been secured by the additional voli~ntary contribution of 1 per cent. by all members of the force. Though

Total.7

1,413

Onder30. I 30 to 35. I 36 to 40. I 40 to 45. I 45 to 50. I 50 to 55. I 55 to 60. 1 Over 60.

671 86 292 48 6 98 130 82

'I'hough t l ~ c fun(ls I~avc Ixcn bcncfitctl 1)y somc mcmbcrs of the force cntitlcd to claim pcnsions continnin to l~criorm t11f.ir rl~~tilxn, on tllc othcr hund somc have cndeavoored to secure the advantages of pensions when thcy werc af!1le Lo work, 1,111 i l l 1 . l ~ ~ ~nanngclncnt of thc funds every care has been talien to protect the interests of the police gencr,zlly.

'I'll(: 1~onsions authorized by the Act are upon a more liberal scale than those fixed in othcr Colon~es, and certainly l~i::l~(~r than any such fund could afford unless supplementecl by revenue additional to the sources available in Now South \\':LIoR. ?'he large number of volu~itary resignations, and the collections from moieties of fines when the police lay the ir~forlnations, have been greatly advantageous to the funds hitherto.

Some members of the service desire to see a provision marle for enabling the police to retire, without medical ,.c:rtificate, after (say) fifteen years' service, with a, gratuity of a month's pay for each year of service. This would perhaps I,(: :L reasonable provision, but legislation would be necessary to authorize it, and the income would have to be augmented f l r ~ ~ n some source to meet the adclitiollal expenditure thereby occasioned.

1':verv member of the force should he fnrnishecl with a cony of this memorandum, and be desired to forward, through his ~u~er in tendent , to this office the subjoined form filled in bygimself.

- EDMUND FOSBERY,

Inspector-General of Police. -.

Rank. Number of years' If in favour of Gratuity upon volulltary retirement, without ledical sorvice completed. *ge lase Birthday. Certificate, after fifteen years' service.

(Signature)

EXTRACT FROM AUDITOR-GENERAL'S REPORT, 1884. THE POLICE SUPERANEUATION FUND.

Havr~c , during the year had occasion to examine the condition of the Police Superannuation Fund in connection with the Police Reward Fund, it may be of some interest to state here the information obtained. Three returns were prepared showing the annual receipts and clisb~usements on account of those funds separately, and also in a combined form, commencing with the year 1868. In connection therewith tho following observations will serve to explain their progressive operation between tho years 1868 and 1284 inclusive :-

The year 1868 is taken as a starting-point because the rate of deductions prescribed by law, 2 per cent., was vo1nnt:~rily increased by the members of the Police Force to 3 11t:r cent, from July of that year.

On January 1, 1868, there was a total credit balance on the united fund consisting of- £ s. d.

Investment in dehentnres . . . . . . . . . . . . . . . . . . . . 26,700 0 0 Less cash overdraft . . . . . . . . . . . . . . . . . . . . ... 1,595 17 11

The corresponding balancc at Dcccmber 31, 1884, was- £ s. d.

. . . . . . . . . . . . Cash in the Treasury . . . . . . . . . . . 6,976 1 3 Investments in debentures . . . . . . . . . . . . . . . . . . . . . 30,200 0 0

£37,176 1 3 an aclvance in seventeen years of £12,071 19s. 2d., but which, i t will be seen by the return, accrued during the last four years only.

On January 1, 1868 the total annual rate of the authorized pensions was- £ s. d.

Out of the Superannuation Fund . . . . . . . . . . . . . . . . . . 4,676 1 5 Out of the Reward Fund . . . . . . . . . . . . . . . . . . . . . 536 15 0

Inal l . . . . . . . . . . . . . . . . . . . . . . . £5,212 16 5 -- At December 31, 1884, the correspondmg figur& were-

£ s. d. Superannuation Fund Pensions . . . . . . . . . . . . . . . . . 9,272 10 0 Reward Fund Pensions . . . . . . . . . . . . . . . . . . . . . . . 629 10 0

Showing an increase of rate in se17enteen years of £4,689 3s. 7d., being the difference between £ s. d.

116 new pensions granted . . . . . . . . . 10,578 15 10 And 78 pensions fallen in by ~ 1 4 t h or the-se rediced . . . . . . . . . 5,889 12 3

£4,689 3 7

The difference in the net increase of income and the net increase of expenditure, as between January 1, 1868, and December 31, 1884, was £4,554 5s. 4d. In favour of income.

These figures show that the comblned fund is barely solvent, and that any considerable addition to the pension list would soon absorb the balancc at present to credit, without a corresponding increase of income.

Talcen separately, the Superannuation Fund shows a deficient income all through the seventeen years, while the Reward Fund shows n considerable excess of income over expenditure. I t thus appears that the solvency of the former is dependent upon the surplus of the latter fund.

The Reward Fund IS, however, a very uncertain one, both as to income and charges, and probably does not always get so much of the fines under the Licensing and other AcBs as it might where the fines are directly due to the action of the pdice. The Superannuation Fund, on the other hand, does not admit of any great increase of income, while it is always exposed to an accession of extra charges.

No.

By Gmtnities paid :- liliza Holohnn, widoiv of lato Constaile Patrick Hnloha~l , . , . . . , , . . , , . . , , . , .. ., . . .. . . , . . . . , . , . , , . . 42 0 0 Margaret Alorgan, wiclow of late Senior-constal~le Jalnes Morgan ... .. ... .. . . ... .. ... .. . ....., , , . , I 108 0 0 Xary Power, widom of latc Constal~lc James Power ... .. , . . . ... . . . . .. . ... .., .,., , , . .. . . . , , , . ,, , 90 0 0 llartlia Rremner, widow of late Senior-scrgeant John Bremner . . . . . . . . . .. . . . . . . . . . . . . . , . , , , , , . . , , , .. ........... 105 0 0 Catherine Bremncr, daughter do do ...................................... 5210 0 Mary Eliza Rrcmner, do (10 (10 ..................................... 1 5210 0 John James 13remner. son rlo (1 o ..................................... 5 2 1 0 0

No. 7.-POLICE REWARD FUND, 16 VICTORIA, No. 33, AND 25 VICTORIA, No. 16. DR. Account Current of Receipts and Disburselnents in the year 1884. CR.

! Period for which drawn. Particulars of Receipts. ) A . To1d. 11 Xames. Amount drawn.

1 From I

Carried forward . . . . . .. , . . . . . . . . . . . . , , , .. . f lGc1, Carried forward .. . . . . . . . . . . . .. .. . . , , , . , . , , ;E 1 . . . . .. . . . . . . . . . . I--- 1,281 9 2

Norrnnn Stnnrt ~ remker , son do (1" ............................. 5210 0

To Balance, 31st December, 1883 :-

In\-estmcnt-Public TVorks Debentures (24 Vie. KO. 24) . .... ..... .......... ............. ...... ........

Jane Austcn, widow of late Dctcctire P. I). Austcn ........................................ 100 0 0 Smyth, ~vidow of Constal~lc Jmnes Slnyth ... ... ... ......... ... . . . .. . .. . .. . ... .. . . .. ...... ......... I 50 0 0

I------

1: s. (1.

200 0 0

E s. (1.

1 Oct., 1883.. .

705 0 0

Investment-Dcbe~it~~res (39 Vic. KO. IS) ............ Cash in Trensnry ... . . . . . . . . . . . , ... .. , ... . . . .. . ... . . . , .. . . ,

C s, (1.

62 10 0 36 11 2

By Pensions paid :- llargaret TT'ood, witlow of late Chief Constable TTTooil, of

! the hlaitland Police ... ...... ... ... ... ............. .. ...... . . . Jane Go\-ers, widow of late Constal~le Ja~llcs Govers . . . . . . . . . Elizabeth l\lurphy, widow of late Cllicf Consta1)lc AIurphy,

30 Sept., 18E4. , ,

of the Port llacclnarie Police ........... ........................... 9,000 0 0

9,759 12 0 -

1: s, (1.

To amotult of fines, &c., received in 1884 ...... ... ............... ........ . . . . To interest on Dc1,entnres belonging to this fund .................,. ....

To in~cstmcnt in Del~ent~~res issuecl under the Act 39 Vie. No. IS, sc~ics A 4 .. . . . . .. . ..... . .... ........ .., , , , , . . . . , , , ,, , . . , , , ,,

>, 50 0 0 / I Louisa Codrill ton, wi(1ow of late Trooper Cotlrington, of the 1 T\.estern GO?^ ~ s c o r t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ,

I 1 1 8 G O 18,959 12 0 ' Ann TT7nltham, midow d late Coa~ta l~lc Tl'althan~, of the1

5,901 13 0

470 0 0

1 Casino Police . .. . . . . . . . . . . . . . . .. . ... . . . .. . . . . .. . . . . . . .. . . .. ...... . ., .... I , f . Jnlia Ledgern-oocl, widow of late Constalde Ledgerwood, of' the Ke\vcastle Police.. . . . . ... . . . . .. ... . . . . . . . . . .. . . .. . . . . . . . . . . . . . . 40 0 0

Eliza, TT7ntson, 13-idom of Late Constable 11.-ntson, land Police ... ...... .. ... ... ...................... ......

5,000 0 0

2 0 0 0 1 Ann Foy, widow of late Constable Foy, of t l x Tal~nlam Police ' 3 0 0 0

is Catllel-;:le Bannon, widow of late Co~fstnl)lc TYillinm Banno~l , , 36 12 0 1 Elizabeth Nelson, ~vidow of late Constal~lc Samucl Nelson . . . Rfary Ann n'allings, ~viclo~v of lntc Sclnor-scl.gcant Thomas,

T I alllngs ... .. . ... ... . . . , .... .... . .. . .. . ... ... . .. ..... . t

16 0 0 ,

Mary Agnes Druln, widow of latc Scnior-constable Drum .. . I ,, pp 576 9 2