The New Zealand Railways Magazine, Volume 6, Issue 1 (May 1, 1931)
Pensions, a Double Blessing
Pensions, a Double Blessing.
In view of the present interest in the above question, it is worth recalling that Mr. H. W. Manly, a former president of the Institute of Actuaries, London, and a world-wide authority on pension funds, said:—
“A fund maintained in a sound financial condition is a blessing to both employer and employed. The employer secures a continuity of service, for the employee will think twice before he leaves a service where he has a number of years to his credit for pension, for a small additional income; and if he (the employer) makes a proper contribution to the fund, in addition to guaranteeing a good rate of interest, he secures efficiency in the service by superannuating his servants with a reasonable pension when they are no longer useful. His salary list is a good 5 per cent.—I am inclined to think in many cases nearer 10 per cent.—less than it would be if there were no fund, and I do not think, therefore, that he can reasonably object to subscribe 5 or 6 per cent. of salaries to the fund.”