Work-load defers pension increase

Press, Volume CXI, Issue 32666, 23 July 1971, Page 4

Work-load defers pension increase

Because of the amount of work faced by the Social Security Department, the earliest that increased pensions can be introduced is October, says the Minister of Social Security (Mr McKay) in a statement.

The Minister was replying to a writer of a letter to- “ The Press,” “Chose Assez Curieux,” he said: "In this computer age I am astounded that the Government cannot pay out now the meagre increase granted to pensioners. The cost of living is still rising, so why should they have to wait until October? With unemployment increasing rapidly, it cannot be due to staff shortages. Furthermore, I understand, civil servants work a 37-hour week and can be called back to work 40 hours without payment of overtime. Could it be that by delaying payment the Minister of Finance will be able to show in the Public Accounts a considerable credit for interest on this money? To counter inflation, why is there no increase in "allowable income” to the age beneficiary who is able to obtain some casual employment? Also, why no increase in “deferment concession” which has remained the same since its inception: a maximum of $1.25? Will some of our more humanitarian M.P.s investigate this?”

MINISTER’S REPLY In reply, the Minister said: “The recent increases in benefit rates from June 9, 1971 involve not only the general increase in 300,000 benefits and means test war pensions but also the identification and reassessment of all those benefits and pensions reduced because of excess income. The department is also dealing with a general increase, in basic war disablement pensions and war widows pensions from April 1, 1971, which is to be paid on July 29. With the volume of work involved, the proposed payment dates are the earliest that can be arranged. “It is the policy of the Government to review the income exemptions from time to time and adjust these as circumstances warrant and it was in accordance with this policy that the income exemptions were increased by $2 a week from September 2, 1970. Concurrent with the increase in benefit rates from June 9, 1971, announced in the Budget the method of abating benefit where a beneficiary’s income exceeds the income exemption was also changed and the maximum

benefit is now reduced by $3 a year for each complete $4 of income in excess of the income exemption. “An increase in the income exemptions involves additional Social Security and war pensions expenditure as a result of those persons on reduced benefits-and pensions becoming qualified for payment at a higher rate, and because of other persons not at present receiving benefits Or pensions becoming eligible as a result of the increased limits. This additional expenditure does not, of course, benefit those who have little or no other income apart from their benefit or pension, and are unable to take employment. “REASONABLE BALANCE” “The present income exemptions do afford a reasonable balance between a degree of encouragement to those who are able to supplement their benefit by taking employment and those who are not. “Your correspondent also mentioned the ‘deferment’ concession. Submissions on this subject were made to the Royal Commission on Social Security. As a result, any recommendations of the commission will be considered by the Government.”