Superannuation plan “radical” departure

Press, Volume CXIII, Issue 33191, 3 April 1973, Page 12

Superannuation plan “radical” departure

Overseas countries that had recently introduced superannuation schemes were not providing any better benefits than the average New Zealander enjoyed at present, said the retiring chairman of the Life Offices’ Association of New Zealand (Mr G. Brown) in his address to the association’s annual meeting on Friday.

Commenting on the Government’s proposed superannuation scheme, which would be compulsory and earningsrelated, Mr Brown said that the life offices as an industry .would not oppose the scheme 'provided it was “actuarially .sound and economically feasible.”

' “As details of the scheme have not been announced it is not possible to comment in detail but it does seem surprising that a Labour Government should depart so radically from its traditional | policy.

“After all, in 1938 a Labour Government considered a form of earnings-related scheme but eventually decided it should not go beyond providing a reasonable level of retirement pension which would be the same for all. Such a view was supported by the Royal Commission on Social Security last year which decided that such a scheme was ‘unnecessary and in many ways undersirable.’ “We believe it is possible within the framework of the present Social Security system to upgrade existing I superannuation benefits.

without an enormous increase in cost and avoiding some of the problems being faced by other countries. “This association has signified its willingness to cooperate with the Government in considering this very complex subject, but we believe the Government would be well advised to consider building its superannuation scheme on the firm foundations now existing rather than embarking on an entirely new venture,” said Mr Brown.