Adjustable Pensions Will Cause Pressure’

Press, Volume CIX, Issue 32077, 27 August 1969, Page 6

Adjustable Pensions Will Cause Pressure’

(Ntia Zealand Press Association) WELLINGTON, August 25. “The new scheme of adjustable pensions • for civil servants will create pressure, for similar concepts to be adopted in relation to the universal superannuation and age benefits," said the manager of the A_M.P. Society (Mr S. R. J. Chatten) at a meeting in Wellington today of the Association of Superannuation Funds of New Zealand. .

Mr Chatten said the new adjustable pensions scheme would also highlight the unfavourable situation of employees who did not enjoy superannuation benefits. “Its most important single influence on the future development of private and public superannuation plans is likely to be the general acceptance of the idea that those who are unable to work, whether because of invalidity or age, are entitled to an income which is adjustable upwards to compensate for increased living costs,” he said. “This will possibly enable pensioners -to share in the rising living standards of the community.” Retained Profits Mr Chatten believes that the new scheme will ultimately develop into a “national income-related adjustable pension scheme.” Next to private life investment, pensions and other forms of privately-adminis-tered and privately-insured retirement benefits were the riiost important region of savings outside the retained profits of ’ businesses and farms, he said. i These savings were important and should grow and increase. “New funds will need to be established, perhaps on art

industry basis, to cover whole arctrs of employment which are not being covered todhy,” said Mr Chatten. ’