PENSION ANOMALIES.

Auckland Star, Volume LIV, Issue 58, 9 March 1923, Page 3

PENSION ANOMALIES.

(To the Editor.) Sir, —The principle «i old age pensions is now firmly established, and no political party would think of rescinding it. At the time of its inception many person* saw in it certain defects and inconsistencies, but accepted it as it Vas rather than see it defeated. Xow that it is firmly established as part of our constitution, these defects and inconsistencies may safely be considered, and we may assist in the evolution of a more perfect system of pensions. Let us consider some of these defects seriatim. I have known several working men who, being offered very generous terms for becoming their own landlords, refuse, because by so doing they w-.uld make themselves ineligible for the old age pension. This defect has been partially remedied, hut legislation, still inclines to discourage > i thrift in this direction. Is it wise that I our constitution should continue to thus discourage thrift? On the • ther hand. I j have known a case where an old man W-is refused the pension on the grounds that he had been a drunkard, and had done ! little to provide for the support cf his family: This form cf chastisement ! might be considered morally just, if -he were at all likely to appreciate it, which is more than doubtful, but, in effect, the punishment falls wholly on his dependents, who have already been su""erers from his neglect, and because he has not supported them they must now support him. Such a method of punishment does not seem to fit in with modern ethics. I Compare this with an old age pensioner | who has several sons each earning £400 ! a year or more, in some cases unmarried and with no dependents. I have also known many elderly people who would be justly entitled to the pension, but were deterred by the magisterial examination, almost equal to appearing in the dock as a prisoner, and rather than do so would suffer great privation. On the* other hand, there are doubtless many cases of falsehood and prevarication which are carried on successfully at these inquiries. Thus the present system makes capital out of decency and self-respect, and puts a premium on dishonesty. We are thus led to question whether these magisterial inquiries are worth the expense they incur. All these anomalies and expenses could be entirely wiped out by making the pensions universal. Of course it would mean some increase of taxation. but no one could complain against such increase, as the payment would eventually come hack into their own pockets. At present the thrifty are taxed to provide for the unthrifty. Who could rationally object to a slight increase of taxation that would remove all the anomalies above referred to and at the same time encourage a general spirit of thrift? I would further suggest that the present system of superannuation be allowed to/ lapse as the present annuitants die out, and the Government subsidy to superannuation funds be limited to the universal pension. At the same time it should be allowable for anyone, whether Civil Servant or not, to increase hid or her prospective pension by periodic i payments into the universal pension fund.

This would make the Government assistance equal and fair to all. It 13 contrary to reason that the Government should giv« greater pecuniary assistance to provide pensions for high-salaried cilfiriaU than wage earners. It aleo seems unreasonable that the general public, who provide most of the funds for the present old age pensions and superannuation of Government officials, should receive no benefit for themselves. Under the proposed system eligibility would depend solely on production of birth certificate, or time of arrival in the Dominion, thus doing away with'all the expenses of magisterial inquiry and superannuation

boards. But someone will say, '"Would you give the pension to the vagabond and the criminal?" Why not? The State must provide for these derelicts. We "cannot dispose of them by a lethal chamber. Of course in the ease of ineapables the pension would be .paid their guardians, public or private, as the case niiglit bo.—l am, etc., 11. R.H.