Superannuation difficulties

Press, Volume CXII, Issue 33033, 28 September 1972, Page 2

Superannuation difficulties

(New Zealand Press Association) WELLINGTON, September 27. The Government must ensure that no inequities could arise by the phasing out of elements of the present social security system which would be necessary if a national superannuation scheme were introduced, the Minister of Labour (Mr Thomson) said today.

He was commenting, to the annual conference of the Government Superannuitants’ Association in Wellington on Labour Party proposals for a compulsory national superannuation scheme.

[ Mr Thomson, who is also | chairman of the Cabinet Committee on the State SerI vices, said there was also the [issue of present employee I superannuation schemes. If existing schemes were allowed to continue a large proportion of the labour [ force would be indefinitely [out of the national scheme. “Yet another expressed concept is the gradual absorption of social security. This does not augur too well I for existing good schemes, and this is one of the aspects which is of concern.” At present a wide number of variations was available in the superannuation field, the Minister said. This in itself could be of value.

“With such a variety of schemes available there is [scope for all to save for their [ retirement in accordance [with their particular needs and their particular situation. Much could be lost by imposing uniformity on such a situation.” ; Mr Thomson said he did [not wish to comment in any I detail on the Labour Party [ proposals. | "Much detail remains to be supplied by the proposers of the scheme before a compre[hensive study of its implications can be made,” he said. [ “In particular, we must [ look very closely at the | changes such a scheme would i make to our present social [security system, a system [ which has received very close [ study by the recent Royal [Commission on social se- | curity, and which they and I the Government consider | still meets most adequately [the needs of our society.” LABOUR VIEW : If the Government were [prepared to create inflation, it should also accept the responsibility to safeguard the interests of innocent groups who were adversely affected, the Opposition spokesman on social welfare, Mr N. J.

King (Birkenhead) said when addressing the conference. The cost-of-living formula should be adjusted to place a greater responsibility on the superannuation fund.

“This could well be increased each year to enable a 100 per cent cost-of-living adjustment to be reached at an early stage.” Among other suggested changes, Mr King said the time had come for adjusting widow’s allowances from 50 per cent of the married rate to 66 2/3 per cent. “An increase of one-third in the widow’s allowance would cost the fund approximately $1,566,000. The amount in the fund at March 31, 1972, was $203,500,000.”