In this Part of this Act, if not inconsistent with the context,—

Except where otherwise expressly provided, this Part of this Act shall not apply to the following persons or to the offices held by them:—

Any responsible Minister of the Crown:

Any Judge of the Supreme Court or Court of Arbitration:

Any person whose salary is permanently appropriated by any Act:

Any person employed in the naval or military Defence Forces: Any person employed in the Police Force:

Any officer of either House of Parliament:.

Any person temporarily employed in the Public Service.

All positions held by officers of the Public Service shall be classified in accordance with this Act into three divisions.

The First Division shall consist of all positions to which there is attached, under the scheme of classification provided by this Act, a maximum salary of five hundred pounds or more, except such positions as the Board considers to be more suitably classified in the Second Division.

The Second Division shall consist of all positions that the Board classifies as belonging thereto.

The Third Division shall consist of all positions to which there is attached a maximum salary less than five hundred pounds, and which the Board does not consider suitable for classification in the Second Division.

All positions belonging to the Second Division shall be classified into eight classes, with the maximum and minimum limits of salary and the annual increments set out in the Second Schedule hereto.

The same position may be classified as belonging to two or more classes of the Second Division at the same time, and in such case the minimum salary - attached to such position shall be the minimum salary appropriate to the lowest of those classes, and the maximum salary shall be the maximum salary appropriate to the highest of those classes. After any officer has reached the maximum salary in any of those classes, his next annual increment shall be the difference between that maximum and the minimum of the next succeeding class to which he so belongs.

For the purpose of classifying the Public Service in accordance with this Act a Board shall be constituted, to be called the Public Service Classification Board, which shall consist of a Minister of the Crown and of such officers (being permanent heads of Departments of the Public Service, and not exceeding ten in number) as the Governor from time to time appoints as members of the said Board.

During the illness or absence from New Zealand of any member of the Board the Governor may appoint any other officer who is the permanent head of any such Department to act temporarily as a member of the Board.

The Minister shall be the Chairman of the Board, but in his absence from any meeting of the Board the members present may elect one of their number to act as chairman at that meeting instead of the Minister.

The Board constituted under “The Public Service Classification Act, 1907,” and the members thereof in office on the coming into operation of this Act shall be deemed to be the Board and the members thereof under this Act.

It shall be the duty of the Board to prepare a scheme for the classification of all the positions in the Public Service in accordance with the provisions of this Act.

Such classification shall fix the salary or the maximum and minimum limit of the salary attached to each position so classified, together with the annual increments (if any) of such salary, and the allowances (if any) to be received by the holder of such position.’

The classification so prepared by the Board shall be submitted to the Governor, and if approved by him shall be published in the Gazette under the title of “Provisional Classification of the Public Service.”

Within one month after the publication of such classification in the Gazette, or within such further time as the Board may appoint, any officer may apply to the Board in manner prescribed for a reconsideration of such classification so far as he is affected thereby, and the Board shall thereupon reconsider the same, and may amend the said classification. If in the opinion of the Board any such amendment prejudicially affects any other officer than the applicant, notice of the intention to make the same shall be given by the Board to the officer so affected, and the Board shall afford such officer a sufficient opportunity of objecting to the amendment.

So soon as all such applications for reconsideration have been heard and determined, the Board shall deliver to the Governor a statement of the classification so made by it. The Governor in Council may thereupon either approve of the same or may remit the same to the Board for reconsideration and amendment, and in the latter case the Board may amend the same accordingly in the manner and to the extent indicated by the Governor in Council, without notice to the officers affected by any such amendment, and shall deliver such amended statement to the Governor for approval.

When such classification has been approved by the Governor in Council, a statement thereof shall be laid before Parliament; and if the House of Representatives passes a resolution approving of such classification, it shall come into force and take effect in accordance with this Act on a date to be specified in that behalf in the said resolution.

So long as any classification made under this Act remains in force the salaries and allowances of all officers holding any of the positions so classified shall, subject to the necessary provision being from time to time made therefor by Parliament, be determined in accordance with the said classification.

The Board shall from time to time, when required so to do by the Governor, revise and reconsider any part of the classification then in force, and may prepare for submission to the Governor such amendments or additions thereto as the Board thinks fit, after giving to any officer who in the opinion of the Board is prejudicially affected thereby a sufficient opportunity of objecting to the same. All such amendments and additions, when approved in manner aforesaid by the Governor in Council and by the House of Representatives, shall come into force accordingly on a date to be specified in that behalf in the resolution of the said House.

No classification of any position made under the provisions of this Act shall have the effect of reducing the salary of any officer holding such position below the rate at which he is remunerated at the date when such classification comes into force.

Every officer appointed to any position in the Public Service which is at the time of his appointment classified in accordance with this Act shall be appointed at the minimum salary attached to such office by the classification then in force, save when he is transferred from another position in which he received a salary greater than such minimum, in which case he may be appointed at the same salary which he so formerly received.

In classifying the Public Service in accordance with this Act the Board may, so far as it thinks fit, determine the maximum number of officers who may in any Department of the said Service be employed in positions which are classified in any class of the Second Division.

The maximum number so determined may be from time to time increased or diminished by regulations made by the Governor in Council.

The right of any officer to receive in any year the increment of salary attached to his position shall depend upon his efficiency and good conduct.

It shall be the duty of the permanent head of each Department of the Public Service to certify in each year, with respect to every officer under his control, whether such officer is entitled by virtue of his good conduct and efficiency to receive any such increment.

Travelling-allowances may be paid to officers at the rates prescribed by regulations, but such rates shall not exceed—

Such allowances shall be in addition to the actual cost of horse-hire, and of railway, steamer, coach, cab, and other fares.

No travelling-allowance shall be paid to any officer except for the periods during which he is absent from his headquarters in the discharge of his duties. The headquarters of any officer shall be determined for this purpose by the Minister in charge of the Department to which such officer belongs.

The limit of travelling-allowances prescribed by this section shall not apply to private secretaries to Ministers of the Crown.

All persons who were employed in any Department of the Public Service on the twenty-fifth day of November, one thousand nine hundred and seven (being the date of the coming into operation of “The Public Service Classification Act, 1907”), and had been continuously employed in one or more branches of the Government service for a period of five years next before such date, shall be deemed for all purposes to be officers of the Public Service permanently appointed, as from such date, to that Department of the said Service in which they were employed at such date.

All persons who were employed in any Department of the Public Service at such date, and continue thereafter in the employment of the Public Service until they have completed five years’ continuous service in one or more branches of the Government service, shall be deemed for all purposes to be officers of the Public Service permanently appointed, as from the completion of the said period of five years, to that Department of the said Service in which they are employed at the end of the said period.

No person who is temporarily appointed to the Public Service after the coming into operation of this Act or who is now employed in the Public Service pursuant to a temporary appointment made on or after the date last aforesaid, and is disqualified for permanent appointment to the same position, shall be continuously employed in such Service for more than six months at any one time, or shall be temporarily reappointed to such Service within six months after ceasing to be employed therein.

The Governor may by Order in Council, in any case in which he considers that the public interest so requires, authorise the temporary employment of any person or any class of persons for a longer period than is permitted by the preceding subsection.

Subject to this Part of this Act the constitution, procedure, and powers of the Board shall be determined by regulations.

In this Part of this Act, if not inconsistent with the context,—

There is hereby established in connection with the Public Service a fund called the Public Service Superannuation Fund, which shall be administered by the Board.

The fund established under “The Public Service Superannuation Act, 1907,” shall be deemed to be the fund under this Act.

The fund shall consist of—

All moneys belonging to the fund shall be paid to the Public Trustee, who shall from time to time invest the same in such manner as is prescribed by regulations.

The fund shall be administered by a Board called the Public Service Superannuation Board, consisting of ten members, namely:—

A Minister of the Crown;

Four persons to be appointed and removable by the Governor in Council;

Two persons to be elected by and from the contributors who belong to the Post and Telegraph Department; and

Three persons to be elected by and from the contributors who belong to other Departments of the Public Service.

With respect to the elective members of the Board the following provisions shall apply:—

Notice of the election or appointment of every member of the Board shall be gazetted, and such gazetting shall be conclusive evidence of the validity of every such election or appointment.

The members of the Board established under “The Public Service Superannuation Act, 1907,” in office on the coming into operation of this Act shall be deemed to have been elected or appointed under this Act, and shall hold office until the election or appointment of their successors under this Act.

With respect to the procedure of the Board the following provisions shall apply:—

The Governor may from time to time appoint some person to be Secretary of the Board, and such person may hold the office of Secretary in conjunction with any other office which the Governor deems to be not incompatible therewith, and shall receive, out of moneys to be appropriated by Parliament, such salary as the Governor from time to time determines.

Every person who—

and who, within six months after that date, by notice in writing to the Secretary of the Board, elected to become a contributor to the fund, shall, as from the date of his election, be deemed to be an original contributor, and shall accordingly be entitled to all the benefits of the fund, subject to the provisions of this Act.

If he did not so elect, he shall not at any future time become a contributor to the fund or participate in its benefits, except on payment of a sum computed in the manner prescribed by regulations, and on such conditions as the Board, having due regard to the interests of the fund, determines; but he shall continue to be entitled to any rights to which but for the passing of this Part of this Act he would have been entitled; and until he becomes a contributor he shall be and remain subject to the provisions of the Civil Service Acts relating to insurance and deductions from salary as provided by “The Civil Service Act, 1908,” or “The Post and Telegraph Act, 1908.”

All persons who are first permanently employed in any capacity in the Public Service after the coming into operation of this Act, or who on or after the first day of January, one thousand nine hundred and eight, have been so employed, shall be contributors to the fund, and the provisions of “The Post and Telegraph Act, 1908,” relating to deductions from salaries shall not apply to such contributors.

Every person who on the coming into operation of this Act is temporarily employed in any capacity in the Public Service, and was so employed on the first day of January, one thousand nine hundred and eight, may, at any time within six months after having completed five years’ continuous service in any one or more Departments, elect, by notice in writing to the Secretary of the Board, to become a contributor to the fund. If he so elects he shall, as from the date of his election, be a contributor entitled to all the benefits of the fund, subject to the provisions of this Part of this Act.

The contribution from contributors shall in each case be the following percentage of the salary of each contributor respectively, and shall be deducted from the contributor’s salary as it becomes payable from time to time, that is to say:—

The amount so deducted shall forthwith be paid by the Minister of Finance to the Public Trustee to the credit of the fund.

For the purposes of this section a contributor’s age shall be deemed to exceed thirty years on and after the thirtieth anniversary of his birth, and the other ages mentioned in this section shall be calculated respectively in the same manner.

If the salary of a contributor is for any period temporarily stopped on the ground of ill health, or if for any period a contributor is on leave of absence without salary, he shall during such period continue to contribute to the fund in such manner and to such extent as may be prescribed by regulations.

When any person who has had or is liable to have any part of his salary deducted under “The Civil Service Reform Act, 1886,” or “The Post and Telegraph Classification and Regulation Act, 1890,” or “The Post and Telegraph Act, 1908,” becomes a contributor, such deduction shall thereupon cease, and the amount in the hands of the Public Trustee to his credit by virtue of either of such Acts shall be invested independently of the fund for the benefit of the contributor, and shall, on his retirement or death, be paid as provided by such Act, in addition to the benefits to which he is entitled under this Part of this Act.

When any person who has effected a policy on his life under “The Civil Service Insurance Act, 1893,” becomes a contributor, he shall be entitled at his option—

The option conferred by the last preceding subsection may be exercised by the policyholder at any time after he becomes a contributor.

The Governor in Council may at any time direct that the whole or any part of the money standing to the credit of any contributor under subsections one and two of this section shall be paid to such contributor.

When any person who is entitled under “The Civil Service Act, 1866,” to receive compensation for loss of office becomes a contributor, the following provisions shall apply:—

If any dispute arises as to whether any person is a member of the Public Service within the meaning of this Act, or as to whether any person is, or is entitled or bound to become, a contributor to the fund, or as to the length of service of any contributor, such dispute shall be determined by the Board, and the determination of the Board shall be final and conclusive.

The fund shall be held and applied for the benefit of the contributors in the manner and subject to the conditions hereinafter set forth.

Every male contributor whose length of service is not less than forty years or whose age is not less than sixty-five years, and every female contributor whose length of service is not less than thirty years or whose age is not less than fifty-five years, may at any time retire from the Public Service at the expiration of three months’ notice of his or her intention so to do, and shall thereupon be entitled to receive from the fund an annual retiring-allowance for the rest of his or her life computed as follows:—

For every year of service such contributor shall receive one-sixtieth part of his or her annual salary, but in no case shall the retiring-allowance exceed two-thirds of such salary:

Provided that the Minister in charge of the Department in which a contributor is employed may extend the provisions of this section to any case in which the age of a male contributor is not less than sixty years or the age of a female contributor is not less than fifty years.

In the last preceding subsection the term “service” means,—

For the purposes of this section the Government service shall be deemed to include the service of any Provincial Government and the service of the New Zealand Railway Commissioners.

The term “original contributor” means a person who on the coming into operation of this Act was an original contributor within the meaning of “The Public Service Superannuation Act, 1907,” or who becomes a contributor under the provisions of section twenty-six hereof.

Every contributor who, with the consent or by the direction of the Minister, retires from the Public Service on the ground of being medically unfit for further duty shall on his retirement be entitled to receive from the fund a retiring-allowance for the rest of his life, computed as mentioned in the last preceding section.

In the case of a retiring-allowance being granted on the ground of the contributor being medically unfit for further duty, such retiring-allowance, or any one or more instalments thereof, may be forfeited by the Board if the contributor fails at any time to submit himself for further medical examination when required by the Board, or if, being reported on such examination to be medically fit to return to duty, the contributor fails to do so when required by the Minister in charge of the Department from which he retired; but this subsection shall not apply to any male contributor after he has attained the age of sixty-five years, or to any female contributor after she has attained the age of fifty-five years.

For the purposes of this Part of this Act a contributor shall be deemed to be medically unfit for further duty if on the certificate of at least two medical practitioners approved by the Board it is established to the satisfaction of the Board that by reason of mental or bodily infirmity, not caused by irregular or intemperate habits, such contributor has become permanently unable to perform his duties.

If any contributor who has retired from the Public Service on a retiring-allowance is permanently reappointed to the Public Service, his retiring-allowance shall thereupon cease to be payable, and he shall again become a contributor to the fund; and if he subsequently retires from the said service his retiring-allowance shall be calculated separately in respect of his two successive periods of service and of the salary received by him in each of such periods.

When in any other case than that provided for by the last preceding subsection a contributor returns to duty while in receipt of a retiring-allowance, or receives payment for services rendered by him to or for any branch of the Government service while in receipt of a retiring-allowance, then no more of such retiring-allowance shall be paid than is equivalent, when added to the remuneration so received by him in any one year, to his annual salary at the date of his retirement.

A contributor may on his retirement, or at any time before accepting the first instalment of his retiring - allowance, elect to accept a sum equal to the total amount of his contributions to the fund in lieu of his retiring-allowance, in which case he shall be entitled to receive such sum accordingly without interest, but no further sum shall be payable out of the fund in the event of his death.

For the purpose of computing the retiring - allowance to be granted to a contributor, his salary shall be deemed to be the average rate of salary received by him during the three years next preceding his retirement, or if his service has not continued for three years, then during the period of his service:

Provided that where by reason of the age or infirmity of a contributor his salary has been reduced, or he has been transferred to a position inferior to that which he previously occupied, his retiring-allowance shall be computed on the average rate of salary received by him during the three years next preceding such reduction or transfer.

A retiring-allowance shall be paid by equal monthly instalments, the first instalment being payable one month after the date of the contributor’s retirement.

If any contributor voluntarily retires from the Public Service before becoming entitled to a retiring-allowance under this Act, or if his services are dispensed with from any cause, he shall be entitled to a refund of the whole amount actually contributed by him to the fund, but without interest.

If any male contributor dies, whether before or after becoming entitled to a retiring-allowance, the following provisions shall apply:—

When any female contributor dies, whether before or after becoming entitled to a retiring-allowance, the following provisions shall apply:—

Any moneys payable out of the fund under either of the two last preceding sections to or on behalf of a child under the age of fourteen may, at the discretion of the Board, be either paid to the child himself or expended by the Board for the benefit of the child, or paid to the Public Trustee or any other person, to be expended on behalf of the child in such manner as the Public Trustee or such other person thinks fit.

Any moneys payable out of the fund under either of the two last preceding sections to the personal representatives of a deceased contributor may, if no grant of probate or letters of administration are obtained within three months after the death of the contributor, be paid to the Public Trustee in trust for the persons beneficially entitled thereto under this Act.

When compensation is paid by the Crown or any Government Department under the provisions of “The Workers’ Compensation for Accidents Act, 1908,” in respect of an accident to a contributor, the following provisions shall apply:—

In no case shall any retiring-allowance or other moneys granted or payable out of the fund to any person be in any way assigned or charged or pass to any other person by operation of law; nor shall any moneys payable out of the fund on the death of a contributor be assets for the payment of his debts or liabilities.

Before the first day of April in each year there shall be prepared by the Board, in such form as may be prescribed by regulations, a statement of its revenue account for the year ended on the thirty-first day of December preceding, and of its balance-sheet at the close of such year, and a statement of membership and of retiring and other allowances at the close of such year.

Such accounts and statements, accompanied by a report from the Board, after being audited by the Audit Office, shall, within ten days after the completion of the audit, be forwarded by the Board to the Minister of Internal Affairs, who shall within ten days after the receipt thereof lay the same before Parliament if then sitting, or if not, then within ten days after the commencement of the next ensuing session.

For the period ending on the thirty-first day of December, one thousand nine hundred and ten, and for each triennial period thereafter, an examination of the fund shall be made by an actuary appointed by the Governor.

The actuary shall set forth the result of such examination in a report, which shall be so prepared as to show the state of the fund at the close of the period, having regard to the prospective liabilities and assets and the probable annual sums required by the fund to provide the retiring and other allowances falling due within the ensuing three years without affecting or having recourse to the actuarial reserve appertaining to the contributors’ contributions.

The Board shall cause such report to be printed and a copy thereof to be supplied to each contributor.

A copy of such report shall, within ten days after it is received, be laid before Parliament if then sitting, or if not, then within ten days after the commencement of the next ensuing session.

In the month of January in every year the Minister of Finance shall pay into the fund and out of the Consolidated Fund, without further appropriation than this Act, the sum of twenty thousand pounds, together with such further amount (if any) as is deemed by the Governor in Council, in accordance with the aforesaid report of the actuary, to be required to meet the charges on the fund during the ensuing year.

A statement of all additional amounts so paid into the fund shall be laid before Parliament within ten days after the payment thereof if Parliament is then sitting, or if not, then within ten days after the commencement of the next ensuing session.

Fines which, pursuant to any Act or regulations relating to the Public Service, would but for the passing of “The Public Service Superannuation Act, 1907,” have been payable to any other fund shall be paid into the Public Service Superannuation Fund and shall form part thereof.

Nothing in this section shall apply to any fines payable into the Police Provident Fund or the Government Railways Superannuation Fund.

The Governor may from time to time, by Order in Council gazetted, make such regulations as he thinks necessary for any of the following purposes:—

The provisions of this Part of this Act do not apply to the following persons:—

When prior to the coming into operation of “The Public Service Superannuation Act, 1907,” any person has been transferred from the Public Service to the service of the New Zealand Railway Commissioners or to the Government Railways Department, and has served continuously in the Public Service and that service or Department, then, for the purpose of computing his retiring-allowance under Part III of “The Government Railways Act, 1908,” such service shall be deemed to be service in that Department within the meaning of that Act.

Any contributor to the Police Provident Fund, the Government Railways Superannuation Fund, the Teachers’ Superannuation Fund, or the Public Service Superannuation Fund who after the passing of “The Public Service Superannuation Act, 1907,” has-been or hereafter is transferred - from one branch of the Government service to another shall continue as a contributor to the fund which he originally joined, and shall be entitled to the benefits accruing thereunder in the same manner as if no such transfer had taken place.