Civil Service Superannuation Act
amount of money. I come then to recommendation No. 6, which asks that provision be made in the statute for the compulsory retirement from the public service of every contributor on attainment of his sixty-fifth birthday without provision for extension of service, subject to the proviso that this amendment shall not become operative until two years after the date the amending act receives royal assent; and recommendation No. 7 asks that provision be made in the statute for retiring any contributor on account of age on his attainment of his sixtieth birthday. The cost in the one case would be very small and in the other a little higher. For years it has been felt in and out of the civil service that there should be a compulsory retirement age, which has been set here in the recommendation at sixty-five, with the proviso that two years shall elapse before the change becomes effective so that it shall not bear harshly upon anyone. The committee was of the opinion that ultimately this provision might not cost the service anything but might possibly bring about a saving in the retirement from the service of men who have passed the age but who for various reasons wish to be kept on. Provision for retirement at the age of sixty, if it is implemented, as is intended, will provide that under certain circumstances contributors may apply for and be given permission to retire, and that it may be more or less optional at or after the age of sixty.
Recommendation eight asks that provision be made in the statute to render prevailing-rates employees eligible to become contributors, subject to designation by the governor in council on the recommendation of the treasury board of the various classes and individuals to be so rendered eligible. There are a large number of men employed in the service throughout the country at prevailing rates. For many years they have been trying to become eligible and to earn superannuation. They have not been able to do so, with the result that many men having no provision for the future are kept on to an age and under conditions when in many cases they are not thoroughly efficient. By this change it is believed that the service will benefit to a great extent. It may be that at the beginning it will not be found feasible to include all classes of these prevailing-rates employees and therefore that provision was inserted, that certain contributors and classes should be designated. This should have a wholesome effect on the service, particularly as regards the employees concerned.
Recommendation No. 9 asks that provision be made in the statute to empower the
governor in council, on the recommendation of the treasury board, to admit as contributors employees of the Canadian Broadcasting Corporation who had previous service under the Canadian radio commission or elsewhere in the public service of Canada. This is a minor recommendation dealing with about seven or eight employees of the broadcasting corporation, who for some reason or other were not allowed to come under superannuation, and until such time as the Canadian Broadcasting Corporation has a superannuation scheme of its own, a certain hardship is being wrought on these persons.
Recommendation No. 10 is an important one, because it is intended to prevent the arising in the future of some of the problems that exist at the present time in the service in connection with superannuation matters. It asks that provision be made in the statute to render temporary employees occupying positions of continuing indeterminate duration eligible to become contributors subject to designation by the governor in council on the recommendation of the treasury board of the various classes and individuals to be so rendered eligible. At the present time and for many years back there have been continuing indeterminate duration employees in the service. They have not been permanent and have not been called upon to make contributions to superannuation, retirement or other funds. If and when they do become permanent, as many of them do in the course of years, there is no accumulated provision whereby they can receive full benefits of superannuation. They have either to pay in a lump sum or to pay in instalments their contribution for the years during which they were temporary, even though their work was continuing and in reality permanent, which means that a considerable burden is placed upon them, and spread over years it amounts to a good deal of money. If they did not make that contribution they were in the past eligible to receive fifty per cent from the service, which was given by the government. We make another recommendation in that regard, asking that such free service be discontinued in the case of employees who do not choose to subscribe their own fifty per cent payment. This provision will ensure that in the future there will be no such class of employees in the civil service. All who will be there will be making the same contribution. In the event of their not becoming permanent employees, and therefore eligible under the superannuation act, their contributions will be returned to them on separation from the service with the appropriate interest. If they become
Civil Service Superannuation Act
permanent, their contributions will be transferred to the superannuation fund.
No. 11 asks that provision be made, by amendment of part II of the Civil Service Superannuation Act and the Retirement Act, to require each temporary employee, on appointment to a position of continuing indeterminate duration, or to a position for which the remuneration is prevailing rates in the public service, to pay contributions to the retirement fund.
Under this provision, if any such temporary employee should become a contributor under the superannuation act the amount of his contribution to the retirement fund will be transferred to the superannuation fund. But otherwise the amount of his contribution with interest will be returned to him or his legal representative on separation from the service. I assume practically all hon. members know that there are in the service a certain number of men who have been in it for a long time but are still classed as temporaries-the common phrase used to describe them is "temporary permanents." Some have been in the service ten, fifteen, twenty years without having been able to make any provision for superannuation; therefore when they become permanent they are faced with that long arrearage of service, the contributions for which amount to a burdensome figure. It is to meet that condition that these two provisions are recommended.
In No. 12 we ask that provision be made for transferring the balance at the credit of superannuation fund No. 2 to superannaution fund No. 5. On March 31, 1938, the balance at the credit of fund No. 2 was SI,823,596. There are only thirty annuitants drawing superannuation from that fund and two contributors still to be retired. That is an old fund set up some forty or more years ago. It is not now being subscribed to except by those two contributors. The amount at its credit is considerable; by transferring that to superannuation fund No. 5, which is the one now in effect, there is no possibility of increasing the load on the present fund No. 5 or of any injustice being dome, because the income from that
81,800,000 will be more than sufficient to take care of the present thirty annuitants and the two contributors still to be retired.
In No. 13 we ask that provision be made in the statute for transferring from the retirement fund to superannuation fund No. 5 the contributions of employees who automatically become contributors under the superannuation act. That is, in the event of one of our earlier recommendations being adopted-that an opportunity for election be given again for a period of a year or such other time as par-71492-2801
liament may decide-that automatically their contributions to the retirement fund be transferred to the superannuation fund.
In No. 14 we ask that provision be made for crediting superannuation fund No. 5 with interest at a rate to be fixed by the treasury board. My understanding is that this is being done now, in effect, but by regulation; we are asking that it be made statutory so as to remove any doubt.
No. 15 asks that provision be made in the statute requiring contributions to be made from the effective date of a contributor's appointment, reclassification or increase of salary, rather than from the date of the instrument authorizing the same. In many cases, I think in all cases, an employee coming into the service has to wait for perhaps six to twelve months before he is made permanent, and sometimes he is reclassified or appointed to a permanent position. We ask that contribution be made from the date on which the employment or change in classification is made effective, rather than the date on which the civil service commission issues a certificate, which may be six to twelve months later.. It is not very important, but it will be of some value. *
No. 16 asks that provision be made in the statute requiring persons hereafter appointed to positions exempted from the operation of the Civil Service Act, or to temporary positions, which have in either case been designated under the statute, to furnish the same evidence of health as is now required of persons appointed to permanent positions under the Civil Service Act. There are from time to time under all governments, and have been in all years since the superannuation act was set up, occasions on which persons were brought into the service as temporary em ployees. They may remain there one year or five years or longer, and then, either by civil service commission action or by order in council, become permanent employees. We believe that in order to protect the superannuation fund and the treasury as well, the same evidence of health should be required from such temporary employees on their first appointment as would be required if they were going into the permanent service.
Very interesting evidence was presented to the committee by a medical officer from the Department of Pensions and National Health indicating the incidence of illness and consequent loss of time in the civil service. Hon. members would find it interesting to compare the figures set forth therein with that of some large industrial corporations. I am sure that we can be reasonably satisfied that the