THE PREMIER'S ANNUITY SCHEME.

Auckland Star, Volume XXXVII, Issue 85, 9 April 1906, Page 6

THE PREMIER'S ANNUITY SCHEME.

ASSUMING PRACTICAL FORM.

(By Telegraph.- -Own Correspondent)

WELLINGTON, this day.

"If my scheme receives the support of the people of the colony I will regard it as the crowning event of my' public life,'' said the Premier four months ago Avben briefly alluding to an annuity scheme, under which he said every soul in the colony would be provided for. The "Post" understands that Mr Seddon intends to try and give effect to this important proposal, and that it will, when more thoroughly matured, be explained in detail to the people of the colony, and be subsequently introduced into Parliament. It is not intended that it shall interfere with the Old Age Pensions Act, but in course of time it will '• probably take its place. The details have not yet been worked out, but Mr.' Sed-1 don's proposal is understood to ba that any person may put a sum, say £5, into a Government fund to earn interest and compound interest, and be subsidised by the Treasury. The Premier contends that it would pay the colony to do this. The colony would have the use of the money, it wotdd save the cost of charitable aid, and, as years went on there would be fewer and fewer people to go on the old age pension fund. "The scheme will," said Mr. Seddon, "encourage thrift, and I hope the people wilt give it their support, and thus enable. New Zealand again to give a lead to the world."

This scheme, the "Post"' adds, is a good deal like the English Parliamentary scheme, commonly known as Mr. Chamberlain's scheme. Under this proposal there are three methods by which an annuity of 5/ a woek at 65 may bs secured, viz.:—(a) by a cash deposit of £2 10/" at 25 and an annual payment of 10/ a year up fco 65. The State is to credit the depositor with an additional £10 at the date of his deposit. Interest would be allowed upon tb-3 total credit at 2| per cent. This would work out at a pension q'i 5/ a week at 65. (b) The same, except that the cash deposit would be »£5 and the annual payment £1In this case the State credrE"" would b? £15. This would admit of other benefits besides the 5/ a week at 65, the chief being a provision for widows and children, (c) The deposit of 30/ by a man and of 25/ by a woman in the post office and also insurance in any society for an annuity of £6 10/ for a man or £3 718/ for a woman. In this case the Str.te would double the annuity. Mr. Seddon's scheme will probably be iound to be most like the first of these three methods, the annuity, of course, being higher, probably double, namely, 10/ a week. The intention is that the new schero? will run concurrently with the old age pensions for several years, but the Premier's contention is that, to make a contributory scheme a success, you must start when people are young, "allowing the existing arrangement to go on until such time as the other will supersede it.