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The Board's Message
Sick Benefit Funds

Sickness is one of the most common misfortunes of life, producing enforced idleness and consequent loss of pay To combat the hardships caused by the loss of earning power in such circumstances, co-operative action by small sections of the Service has led to the setting up of a number of sick benefit societies whose aim has been to ameliorate the conditions of those members unfortunate enough to be visited by sickness.

All of these societies have, within their own limited scope, done good work in reducing the strain on the financial resources of those contributors needing assistance in this way, and by their operations have helped also to reduce the mental stress which the fact—or even the possibility—of inability to earn their usual wages produces, particularly on those carrying family responsibilities.

The general plan upon which most of the Railway sick and accident societies work is one under which a regular contribution is made by members, and from the funds so accumulated fixed sums are paid to those belonging to the society who may be the victims of sickness. In some of these societies there is an annual distribution amongst contributors of any surplus accumulated.

The chief variant from the above general method of providing relief is found in the Brotherhood Societies which have no regular subscription but make a levy monthly for the benefit of any member on the sick list.

The Board fully recognises the benefits which have been derived from the operations of these societies, in fostering the spirit of fellowship, and commends the societies on the effectiveness of their effort in reducing the weight which pure misfortune sometimes throws on deserving employees. The Board feels, however, that a great step forward might now be taken by the formation of one comprehensive society to include and provide for the whole of the members of Division 2. With such an arrangement—which would to an extent do for members in cases of sickness what the superannuation fund does for retiring members—administration would be simplified, overlapping would be avoided and benefits improved.

The Board therefore suggests for the consideration of members the formation of one inclusive Fund, and, providing the proposal meets with general approval, the Department is prepared to assist and subsidise it.

In putting forward the proposal the Board is impressed with the desirability of helping members to relieve such ills as are unavoidable and has no object but to help members through such trying periods by supporting and encouraging the creation of a Fund which would give greater security and larger benefits than is possible under existing arrangements.

The Fund would be administered by elected members of the staff.

If members are prepared to endorse the principle, details as to rates of contribution by employees and the amount of assistance to be rendered by the Department respectively, together with regulations for administration, can be considered in conference and in accordance with actuarial advice.