LOCAL GOVERNMENT SUPERAN NUATION (SCOTLAND) BILL. (Hansard, 19 July 1937)

§ THE UNDER-SECRETARY OF STATE FOR WAR (LORD STRATHCONA AND MOUNT ROYAL)

My Lords, I beg to move, That this Bill be now read a second time. The general object of the Bill is to secure that there shall be provision by all local authorities in Scotland of facilities for the superannuation of their employees. The Bill is a comprehensive one which not only amends existing statutory provisions but also consolidates them in a separate measure for Scotland. The principles of the Bill are generally the same as those of the English Bill which has already been before your Lordships. The Bill provides for the compulsory inclusion in a superannuation scheme of all whole-time officers of local authorities in Scotland. From returns which have been obtained from Scottish local authorities it appears that some 60 per cent. of such officers already enjoy the benefits of superannuation. This Bill will extend these benefits to the remaining 40 per cent. and, by making the amounts of pensions and the conditions under which they are granted uniform throughout Scotland will facilitate the free movement of staffs which is desirable in the interests of efficient local government. In this connection it may be noted that provision is 556 included in the Bill, and in the corresponding English measure, to ensure that local government officers will be able to retain superannuation rights if they move from service in the one country to service in the other.

The Bill leaves to local authorities the discretion they already possess as to the superannuation of their other employees, but it simplifies the machinery for bringing them into superannuation and improves the position of superannuable servants as well as officers in important respects. For example, the Bill enables superannuable employees to count for superannuation purposes all past local government service, and, in so far as it is service in the course of which they have not paid contributions, they will be able, in return for a payment to be prescribed, to reckon it as contributing service. Where an employee, owing to age or ill-health, is given less arduous duties with a consequent reduction of pay, he will be able, if he wishes, to continue to contribute as if his pay had not been reduced and thus secure his full pension. In calculating pension, which will continue to be based on the last five years' average pay, periods of unemployment and reductions of pay owing to sick leave are to be ignored. An employee will be able, in return for the surrender of part of his pension, to secure an annuity for his widow. The Bill does not affect the position as regards transfers between the State and municipal services, which is governed by regulations made under the Superannuation Act, 1935. Special provision is also made for the admission to the scheme of registrars and their staffs, and for reckoning the service of persons indirectly employed on local authority duties.

In order to secure schemes which are actuarially sound, some grouping of local authorities is necessary. Under the Act of 1922 no local authority can have a separate scheme if the number of officers or servants who will be included in the scheme is less than fifty. While it is proposed to retain the minimum of fifty in Scotland it is essential to the proper working of a scheme that the membership of each fund should be as large as circumstances permit. Many counties and large burghs, and all small burghs, have less than fifty whole-time officers, and in order to make actuarially sound 557 schemes the employees of small burghs are to be grouped with employees of the county, and, where there are less than fifty contributing employees, county and large burghs are to be grouped. The larger authorities, who will be required under the Bill to establish separate superannuation funds, will be liable to accept as contributors to their funds the officers and pensionable employees of smaller authorities, who will pay their equivalent contribution to the same fund. Much preparatory work both by the Department and by local authorities will require to be done before the scheme can be brought into operation. In order to allow time for this the Bill proposes to fix the 16th clay of May, 1939, as the appointed day. I beg to move.