NATIONAL PENSIONS.

Press, Volume LXII, Issue 12509, 23 May 1906, Page 8

NATIONAL PENSIONS.

THE PREMIERS PROPOSALS.

HOW FRIENDLY SOCIETIES WILL BE AFFECTED.

(I'RESS ASSOCIATION TELEGRAM.) WELLINGTON, May 22. Tlio president of tho Friendly Socetie«' Conference received a letter fiom the Premier, which was read at tie sitting of tho Conference to-day. Mr Seddon wrote :—"I am fending, for the information of tho Conference, a draft Bill, which is partly consol.dation, and at the same time contains certain amendment!?, extensions, and modifications of the existing law. I am also sending to you a communication in connection with the proposed nut.onal annuities, and the application of the fichume to Friendly Societies. I hop© the proposals wi.l commend themes?.ves j to the judgment of tho New Zealand Friendly Socio:ies. I trust they will be considered carefully, and if mo p;o----po.-als are in any way imperfect, and oould be improved, kindly ict mo have your advice." The Premier adde:—"The Bid I have forwarded is not for publ.cat.on —indeed, it hnfl not yet received the sanction of Ministers. It iri only a louga draft, but it is considered nece.-rf.ary to havo something definite before you, which will bo a caving ot time as t-ir as tho Conference is concerned, and wiil probably lead to tang-ble ra-.ults more speedily than if tlie Confeit-nco wero to deal with each and every matter by mwlution-3. I t-.ru.-i, that tho ! results of the Conierence will lie in the best interests of Friendly Sjc.ctics.'' Tho letter icfcrring to na.-io.nal pensions was as lol.ows:—"It Ls with very great pleasure that I lay before you some euggu*;ior.s in connection with a national annuities measure, which I contemplate introducing into Puriiamont during the coming session. Recognising as I do the enormous value of tho service* which Fnemcbly Societies have rendered to the nation, I am anxious that tho National ,»nnuit-ic«s Bill should be co framed as 'to subserve the interests of tho Friendly Societies to tJio greatest extent po.-.sible, and thus, perhaps, increase the»r uectuhuss to tho country still further. To I'hio end. it has seemed to mc that somo such measure as the following would bo most helpful. '•(1) In the case of all weekly allow- ! ances which are or will bo mado \ by societies or lodges to their • aged members (i.e., members oyer ; sixty-five years of age) during sickness or other infirmity, I I propose to offer a proportion of this weekly allowance. The lodge would in these cases go on as at presont, itself paying tho sick allowances to tlio aged members in the first instanoo, but at tho end of every third year the Government would make a calculation to ascertain what sum the lqdge was entitled to by way of a refund. Tho percentage of refunds in the case of each member would be on a sliding scale, ranging from 10 to 50 per cent, of tho weekly allowance, accord- i ing to family and other circum- j stances of the member, while ! drawing sick pay. This sliding scale of refunds or subsidies would take into account the civil condition of the member—i.e., whether married or single, and the number of children—as points which affect, the welfare of the , community, the design being to encourage such modes of life (viz., ] thrift, marriage, etc.) which are conducive to tho national welfare, and my Government recognises that of these habits, which aro so important to us few (if any), oan stand higher than membership in a well-managed friendly society. "(2) In the case of members who are j under sixty-five yeare of age, the Government would not be able to make a refund in respect of tho weekly allowance for what is known as "acute" sickness—i.e., sickness during the first twelve months after the commencement of the attack—but for all oases of sickness or other infirmity, where the incalflicitated member is or will bo drawing sick pay continuously for more than twelve months, I propose to offer to lodges a Tefund from the Treasury, hedording to the following scalo:—Members aged 55 to 65, 50 per cent, refund; 45 to 55, CO per cent, refund; 35 to 45, 70 per cent, refund; 25 to 35, 89 per cent, refund; under 25, 90 per oent. refund. Tho experience of Friendly Societies, and the theory of actuarial science, unite in providing that this payment for premature permanent invalidity—i.e., for chronic sickness or infirmity in the ea«e of young nnd middle-aged members, which has already lasted for a period of twelve months continuously—is a risk which it is peculiarly unsuitable for a small lodge to underi take by itself. It is not that with a large membership, tho aggregate amount of sick payment would be proportionntelv great, but the experience of different lodges is liable to vary so much with reference to this particular risk, that while majiy lodges escape even the small amount oi such premature permanent sickness as the actuarial tables indicate for an average, some few lodges wi?.l be unfortunate encn™h to have far more than the average 6hare of such permanent sickne<s», and will be liable to insolvency in spito cf the bfst calcu'nted" scale of contributions. Hence flic necessity for spreading this particular kind of T.Vk over a larger area than the individual lodge-, just as the funeral benefits granted by lodges have Hong ago been spread over the entire district to which tho lodges belong. '* (3) Bevvies giving th 1 "*? subsidies to the lodges and other societies as A direct refund cf a certain percentage df weekly allowances, which th?y piy to their aged members and to thes? who are permanently invalided, I am anxion* to give n special subsidy to members of Friendly Societies who may apply for deferred anI unities from the Gov?rnment un-d-r my r,nt : on;il n-.nniti-sRf-cflv'mo. Such annuities will be sutsidfced from th.* Treisnry, in accordance with th? sliding sca'e I haTe already referred to, which takes into account the elements of marriage, persistency in, making depesits. etc.; but, feeling tlio extrem> import.inco to the* nation of the Friendly SocipHes. I propose to make an additional subsidy cf 5 prr cent, in the enso. of "any applicant for an annuity who is a member of a Friendly Society. Tn tho c.ise, however. , of thr.-e societies which have been I pro::ounc:d at their last reaiu-n-' tion to have an actuarial defi- j coney, it seems to mc of such • importance to strergthetfi the sol- , vvnev of the sick and funeral i fund', that I propnso to allocate j oi-.e-hnlf of this additional subsidy of 5 per cent, to that purpose, and I sugg. st that only th> remaining barf £>ha!l co to- i ward-; incrcasrs tho annuity of j the individual membor. I

" (4) Irrespective of membership in Friendly S:cicti£«, it is proposed under my National Annuities Bill to allow" all person* to take out deferred annuiti-a; -with tlio Government—i.e.. annuities beginning at such agrs. as sixty, .sixtyfive and seventy—by making depo.its according to a certain rcale which will 1)2 specified in tilt? schrdule to the Act. The" annuities will b» subsidised by making payments from tho Trea.> my. That will havo the effect ot increasing sucli annuities 'by amount; raring f:om 10 to 45 per cent., according to the family and other eircum Uncrs- of th* applicant for the annuity; but, ot course in all these cases—i.e., in the ca. c e cf persons who are not members of Friendly Socio'ie*— there will bo nr> extra subsidy of 5 per cent. Mich as the Friendly Sooieties' members wiL be cut it-led to. I hope that tho propce-.lrs that I have outlined will commend tliemselv3 to the judgment of the New Zealand Frieatfly Societies." The President remarked that when he ' mado certain remarks in connection with the national annuities yesterday, he had absolutely no idea of the communication ; that was awaiting him from the Pre- ' mier. Consideration of the letter regard ng annuities was deferred until aiter the agenda paper had been dealt with.