Superannuation bill in House

Press, 17 September 1976, Page 3

Superannuation bill in House

Wellington A Social Security Amendment Bill implementing the Government’s piomised national superannuation scheme was introduced in Parliament yesterday, and promptly ran into a barrage of criticism from Opposition members. "they labelled the new scheme “discriminatory’ - and said that it was sociallv unjust because increases in payments would go to those m least need of it. The Opposition spokesman on social welfare, Mr M. A. Connelly (Riccarton) asserted that the Government had broken an election promise in not providing for married couples to be $2l 46c a week better off as he said it had indicated, would be the case. The scheme will be in-! troduced on February 9 next! year. First payments will be made on February 17. At that time, married; couples over the age of 60 i will receive superannuation I at a rate of 70 per cent of I the average ordinary time! wage, and single! beneficiaries, 60 per cent. The married-couple rate will be raised to 80 per cent of the average ordinary time wage in August of 1978. Single beneficiaries will con-1 tinue to get 60 per cent ofl the married rate. The rate of the first pay-1 ments will be based on the Labour Department's Octo-| ber survey of wages and salaries, and will be adjusted thereafter at six-monthlyl intervals, in line with move-1 ments in the average wage. The superannuation willj not be subject to an income test but will be taxable.! according to the Minister of Social Welfare (Mr Walker) when introducing the bill. P.A.Y.E. tax will be deducted at source and payments will be made by means of direct credit to trading bank, trustee savings bank, or Post Office Savings Bank accounts or by posted; cheques, according to the' wish of the superannuitant. : Mr Walker denied that the scheme would be dis-! criminatory. Housewives and existing Social Security beneficiaries who were excluded from tfie New Zealand Superannuation Scheme would be covered. Provision was made for death benefits to be paid to dependent widows, widowers, or children or people who die before <5O, instead of 65 at at present. In the case of the death ofl

11 a superannuitant who leaves I a widow, widower, or ■ dependent children, a lump .! sum may be paid equivalent . |to 13 weeks payment of nat- ’ ’ ional superannuation at the 'bate applicable at the time > of the death. : i On the death of a married • ! person, the amount of the J lump sum is not to exceed 113 weeks national super- ’ annuation at half the marIried rate. J In a case where there is I no surviving widow, wid‘lower, or dependent children, J a lump sum sufficient to , meet funeral expenses and any outstanding debts may; ~ be granted. Provision is made for . cases where the spouse of a married person does not , qualify to receive national ■ superannuation. In these cases, the qualified super- , annuitant will receive 60 per I cent, of the married rate or 150 per cent if the spouse is I receiving an economic pension, war veteran’s allowance, or war service penIsion. i A married man whose II wife is not entitled to nat-l ional superannuation may if he chooses be paid the mar.fried rate subject to the samel >|income test as it is applied! ,to income-tested Social Se-i . curity benefits. A married woman whose . husband is not entitled to national superannuation may |be paid the married rate if -|the Social Security Commisjsion is satisfied the husband . has been dependent on her; >i income for not less than 12 (months before the date of ■ her application for super-;

s annuation or there is an - adequate reason for her hus- • band being dependent on her I income. ’ , The superannuation is to ! be granted in all cases with : effect from the pay day after the date an application 1 for it is received or from > the pay day after the day I the applicant became en- . titled to it. The right of a person to receive it immediately he or . she is eligible will not be ( affected if the application is made within six months of ’ becoming entitled to it. If I the application is delayed J for six months beyond the eligibility date, the payments . will begin on the pay day after the dale six months before the date of appli- ; cation. . Any person receiving an ' age or superannuation benej fit before the introduction of . national superannuation is ; deemed to be residentially 1 qualified to receive the nat- ’ ional superannuation. Unmarried women be- ' tween the ages of 55 and 60 , who are receiving a special ?age benefit may receive a ; domestic purposes benefit I when National super.annuation begins. 4 Applicants for National ’superannuation must have ! completed seven years residence in New Zealand in the , 10 years immediately before the application for it, and • have completed a total of at least 10 years residence in New Zealand since the age ■of 16. I But provision is made for I the requirement for resiidence in New Zealand for (seven of the 10 years before (application to be reduced by one year in respect of each 10 years of residence in New Zealand after the applicant reached 16. In the determination of residential qualifications, no account will be taken of the • time a blind person is overi seas for guide dog or vo- ■ cational training or for treatment. Nor is account to , be taken of the time a per- ( son is overseas for medical II treatment or special vocajtional training. . No account will be taken Jof time overseas spent by a ■(seaman serving in a ship registered or owned in New Zealand and trading to and 1 from the country, nor of ; military service abroad, nor appointment overseas under a Voluntary Service Abroad I programme.- Missionary work overseas will also not disqualify an applicant on residential grounds. In all these cases, the applicant must be either born in New Zealand or ordinarily resident in New Zealand.