AGY-4024 | Railway Service Superannuation Board

Full description

The Railway Service Superannuation Board was created by an Act to provide superannuation allowances and gratuities for persons employed in the Railway and Tramway Services, 1910 (Act No. 11, 1910) The Board consisted of seven persons:
Two members appointed by the Governor for a term of five years;
Three members elected by officers of the railway service; and
One member elected by officers of the tramway service. The Chief Commissioner of Railways was ex-officio chairman of the Board. (1) On 21 September 1910 the nominated members were announced in the New South Wales Government Gazette. They were The Hon. C.K.Mackellar MLC; R.A. Warden (President to of the Government Savings Bank of NSW; and D.C. Simpson (Divisional Engineer, Railway Department). (2) Regulations covering the method of electing the remaining members of the Board were published in the NSW Government Gazette 21 September 1919. (3) The results were published in the NSW Government Gazette of 2 November 1910. James Howard and Cuthbert Brown were elected to represent the Railways employees and Cecil Peters to represent the Tramways staff. (4) The role of the Board was to administer the Fund and to make the necessary determinations. The Railway Service Superannuation Act, 1910 took effect from 1 October 1910 and the superannuation contributions stipulated by the Act were payable after 1 November 1910 (5) Employees contributing to superannuation under the Civil Service Act 1884 were not subject to the Railways Service Superannuation Board (6) For employees required to contribute to railways superannuation, the Act provided for a deduction of 1½% of each employee’s salary to be placed to the credit of the Government Railways Superannuation Account. An annual appropriation by Parliament from consolidated Revenue was to be placed into the account to enable it to meet commitments. The funds in the account were to be used to pay superannuation allowances, gratuities or to make refunds to participants. (7) Superannuation allowances could be paid to officers:
Over 60 years who retired after a minimum of ten years’ service;
Below retirement age with a minimum of ten years’ service who were required to retire on medical grounds; or
Below retirement age with a minimum of ten years’ service whose services had been dispensed with because their position was abolished and no other suitable position in the public service was available. (8) Superannuation was paid for the remainder of the person’s life. The formula was originally one sixtieth of the average annual salary and allowances paid during the officer’s employment, multiplied by the number of years’ service. The annual superannuation paid was not to exceed 2/3rds of his annual salary (9) Those who had not previously contributed to superannuation could make retrospective payments into the fund and receive all of the benefits, or could accept a reduced superannuation payment based on the number of years they had contributed. (10) The superannuation fund also provided for the payment of a gratuity to officers injured while working and who found it necessary to seek retirement. The formula for gratuity was up to two months salary at the present rate for each year of service, a minimum of six month’s salary. (11). Gratuities were also available to those who;
were forced to retire early for health reasons and who had below ten year’s service;
were terminated but were ineligible for superannuation. (12) The Chief Commissioner of Railways could appoint three medial practitioners to examine those seeking retirement on medical grounds, and could also request a report from the officer’s supervisor regarding the impact of health upon his performance prior to making a decision to retire the person on the superannuation fund. (13) Those retired early on superannuation for health reasons were required to submit to medical examinations as required, or to forfeit their superannuation benefits. (14) If a person was found by the medical team to have recovered he could be required to resume his former duties or other suitable duties at his former salary. If the former officer refused to resume work, part of his superannuation could be surrendered. (15) When a serving officer died, his family could receive a payment consisting of the amount he had contributed to the superannuation fund, plus interest, (16) and if a person died within six months of retirement his family was entitled to receive the difference between his contributions and the benefits he had received from the fund. (17) If an officer voluntarily retired after 15 years service he was entitled to a refund of his contributions but not the interest accrued. (18) The maximum annual superannuation payment was set at £800. (19). Dismissed persons forfeited superannuation rights, but if the reason for dismissal was not serious a person could receive a portion of the money he had contributed according to a determination by the Board. (20) There were bridging provisions for officers who had taken out insurance policies under the Government Railways Act, 1901 with officers having the choice of retaining, surrendering or transferring the policy to the Board. (21) The Board’s determinations in relation to whether deductions should be made, the period of service of an officer and whether an officer had been dismissed for misconduct were final and conclusive. (22) The Governor could make regulations for carrying out the Railway Service Superannuation Act, 1910. These regulations were laid before both houses of Parliament and were published in the NSW Government Gazette before taking effect. (23) The Railway Service Superannuation Act, 1910 was repealed by An Act to consolidate the Acts relating to Government Railways and Tramways (No. 2) Act, 1912 (Act No 30, 1912) (24), which incorporated the whole of the repealed Act in Part IX – Superannuation Allowance and Gratuities. (25) In 1916 superannuation was extended to apply to temporary staff who had been employed continuously for six months or non-continuously over three years. However this did not include staff temporarily hired for railway construction works, in refreshment rooms or dining cars. (26) Superannuation benefits were extended to officers who took leave without pay for health reasons and subsequently retired. These benefits could be backdated to the commencement of the leave without pay.(27) Another new condition introduced in 1916 enabled a person injured in the course of duty to continue to receive the salary current at the time of the injury until he retired from the service – unless the injury was caused by negligence or ‘wilful and wrongful act’ (28) Superannuation was also extended to those under 60 who failed vision or hearing tests, could not be employed in a position approximately equal to that prior to diagnosis, and elected to retire. (29) Financial arrangements for the Fund were changed in 1928 to enable commitments to be met from the Government Railways and Tramways Fund rather than consolidated revenue. The interest on the Superannuation Account was paid every six months from consolidated revenue at a rate determined by Treasury and the Board. (30) References to 'tramways' were altered by the Transport Act, 1930 (Act No. 18, 1930) to allow for the changed administration of tramways under the various transport trusts that were established by the Act (31) The frequent alteration in administration of transport in the early years of the 1930’s led to a number of amendments being made to affect the membership and chairmanship of the Board. These were as follows:
The Chief Commissioner of Railways was authorised to delegate his responsibilities on the Railway Superannuation Board, including being the Chairman of the Board, to any of his Assistant Commissioners and he could similarly revoke this delegation by the Government Railways (Amendment) Act 1930 (Act No. 39, 1930) (32)
The reference to ‘an Assistant Commissioner’ was deleted and ‘an officer of the Railways Commissioner of New South Wales’ was inserted into section 110 of the principal Act by the Government Railways and Main Roads (Amendment) Act, 1931 (Act No 61, 1931) (33)
The Transport Commissioner appointed to the Charge of the Staff Branch of the Department of Transport’ was to be a member and chairman of the Board by the Ministry of Transport Act, 1932 (Act No. 3, 1932) (34)
The Commissioner of Railways was appointed to the role previously occupied by the Commissioner in Charge of the Staff branch under the Transport (Division of Functions) Act, 1932 (Act No. 31, 1932) (35)
The Government Railways (Amendment) Act 1945 (Act No 12, 1945) introduced a number of detailed provisions relating to contributions to the fund in order to obtain the full superannuation benefit. These required:
those who had contributed less that 1½% of their salaries to pay the difference to the Fund according to a formula based on the years of service;
those who had paid more than the required sum to receive a refund; and
those who been re-employed after having their previous contributions refunded to repay the amount to the Fund. (36) The 1945 Amendment Act also introduced changes to section 119 of the principal act which related to staff who had been retired on medical grounds. If on medical examination they were considered fit to return to work they could be re-employed at the rate then paid to officers with equivalent qualifications and experience. It was mandatory for fully restored persons to resume work, and if they refused to do so any gratuity from the Fund could be recovered as a Crown debt. However, if unfit for their former duties they could be offered work at a lower grade commensurate with their state of fitness. They could then receive a salary appropriate to the duties performed. Return to work was optional for these latter superannuants. Either category of those who returned to work under the amended section 119 could qualify again for benefits under the Fund if their medical condition returned. (37) The Government Railways and Transport (Amendment) Act, 1950 (Act No. 19. 1950) removed the requirement of fifteen years’ service before the contributions could be returned to an officer who took voluntary retirement (38) and increased the amount of superannuation paid to retired staff by ¼ from 28 May 1950 (39) The Government Railways (Superannuation) Amendment Act, 1951 increased the portion of salary deducted for superannuation to 10% from 6 January 1952 (40) From the same date the superannuation benefit paid to retired persons was increased by one fifth or £26 per annum whichever was the greater. (41) Serving officers who had contributed less than 1½% of their salary up to 6 January 1952 and 10% thereafter to the Railway Service Superannuation Fund were required to pay the difference to the Government Railways Superannuation Account. (42) The Railway Retirement Fund was established by the Railways Retirement Fund Act, 1964 (Act No 25 1964) Employees entering the service after 1 June 1964 when the act was proclaimed joined the new Fund, but the Railway Service Superannuation Fund continued to serve its existing members. The new Fund was managed by the newly-established Railways Retirement Fund Board. The first Board consisted of the currently serving Railway Service Superannuation Board – presumably sitting as a separate legal entity. There were arrangements for the empanelment of a seven-member Railways Retirement Fund Board to replace this interim Board on a date to be proclaimed. (43) Nominations for employee representatives were sought on 25 June 1965 (44) and the nominated members were announced in October 1965 (45). The second Railways Retirement Board took office from 1 October 1965 after which the Railway Service Superannuation Board ceased performing a dual role. The composition of the Railways Service Superannuation Board was changed by the Government Railways and Transport (Amendment) Act 1970 (Act No. 13, 1970) deleting the two representatives of the railway employees and one of the tramways employees and substituting representatives made by contributors under regulations to the Act.(46) The Act also introduced the refund of contributions to all employees who left the service (other than by death) if they were not entitled to superannuation. (47) The provision in relation to superannuation benefit for dismissed officers and that which gave the Board discretion to determine whether a dismissed officer was eligible for superannuation were repealed. (48) The Government Railways (Amendment) Act, 1971 altered the provisions relating to the entitlements of widows whether at the time of death the spouse was in the service or receiving superannuation. (49) The entitlements of widows were further altered by the Government Railways (Superannuation) amendment Act 1979 (Act No 198, 1979) The New South Wales Retirement Benefits Act, 1972 (Act No 70, 1972) amended the original act to clarify that the benefits of the Railway Service Superannuation Fund were not available to those who became railway employees after the proclamation of the Railways Retirement Act, 1964, i.e. 31 May 1964 . (50) The Government Railways (Superannuation) Amendment Act , 1977 (Act No 99, 1977) made a range of amendments to the calculations of superannuation with the usual benefit based on one fortieth of the person’s salary on the last day of service multiplied by the number of years service to a maximum of 40 years. (51) but there were a wide range of adjustments to this figure. The Government Railways (Superannuation) Amendment Act, 1980 (Act No 54, 1980) increased the superannuation allowance by one eighth. (52) The Railway Service Superannuation Board was dissolved when the Government Railways (Superannuation) Act 1912 was repealed by the Superannuation Legislation (Amendment) Act 1991 (Act No 95, 1991). The sitting members were not entitled to compensation for loss of office as a consequence of the cessation of the Board. (53) This took effect from 17 December 1991 (54) Endnotes
(1) Railway Services Superannuation Act, 1910 s. 3
(2) NSW Government Gazette 21 September 1910 p. 5185
(3) NSW Government Gazette 21 September 1910 p. 5289-90
(4) NSW Government Gazette 2 November 1910 p. 5957
(5) Railway Services Superannuation Act, 1910 s. 1
(6) Ibid. s. 2
(7) Ibid. s. 5
(8) Ibid. s. 6
(9) Ibid. s. 7
(10) Ibid. s. 8
(11) Ibid. s. 9
(12) Ibid. s. 10
(13) Ibid. s. 11
(14) Ibid. s. 12
(15) Loc. Cit.
(16) Ibid. s. 13
(17) Ibid. s. 14
(18) Ibid. s. 15
(19) Ibid. s. 16
(20) Ibid. s. 18
(21) Ibid. s. 19
(22) Ibid. s. 20
(23) Ibid. s. 22
(24) An Act to consolidate the Acts relating to Government Railways and Tramways Act, 1912 (first schedule)
(25) Ibid. s. 108- 129
(26) Government Railways (Amendment) Act 1916 s. 20
(27) Ibid. s. 21
(28) Ibid. s. 22
(29) Ibid. s. 23
(30) Government Railways (Amendment) Act, 1928 s. 3 (k)
(31) Transport Act, 1930 s. 273
(32) The Government Railways (Amendment) Act 1930 s. 4(h)
(33) Government Railways and Main Roads (Amendment) Act, 1931 s. 2 (4)
(34) Ministry of Transport Act, 1932 (34) s. 21 (1) (d)
(35) Transport (Division of Functions) Act, 1932 s.26 (c) (1)
(36) The Government Railways (Amendment) Act 1945 s. 2 (b)
(37) Ibid. s. 2.(c)
(38) The Government Railways and Transport (Amendment) Act, 1950 s. 2 (1) (j)
(39) Ibid. s.2. (1)(i)
(40) Government Railways (Superannuation) Amendment Act, 1951 s. 2 (1) (a)
(41) Ibid.s. 2 (1) (b)
(42) Ibid. s. 2 (1) (c)
(43) Railways Retirement Fund Act, 1964 s. 34; and NSW Government Gazette 29 May 1964 p. 1680
(44) NSW Government Gazette 25 June 1965 p. 2001
(45) NSW Government Gazette 29 October 1965 p. 3521
(46) Government Railways and Transport (Amendment) Act 1970 s. 2. (i) (f)
(47) Ibid. s.2. (1) (g)
(48) Ibid. s.2. (1) (h) and (i)
(49) Government Railways (Amendment) Act, 1971 s.2 (a) and 2 (b)
(50) The New South Wales Retirement Benefits Act, 1972 s. 69; and NSW Government Gazette 29 May 1964 p. 1680
(51) Government Railways (Superannuation) Amendment Act , 1977 Schedule 1 (4)
(52) Government Railways (Superannuation) Amendment Act, 1980 Schedule 1 (1) (52 (53) Superannuation Legislation (Amendment) Act 1991 s. 4 (54) Ibid s. 2 (4) (a)