STATE INSURANCE.

Dominion, Volume 2, Issue 579, 6 August 1909, Page 5

STATE INSURANCE.

• CONTRIBUTORY SCHEME. FRIENDLY SOCIETIES OPPOSED. OLD AGE PENSIONS. (By Teteeraph.-Preso Assoctatioß.—Odojrleht.) London, August 4. The Oddfellows as a. body have reEolved that any scheme of State insurance would 1)0 dotrimont.il to friendly societies. The speakers at tho Newcastle meeting stated that tie Boheme would only benefit Wastrels. Tho Workmen's Compensation Act had caused Much malingering tllat sick' ness claims had doubled. The Hearts of Oak, Kechabites, and Oddfellows 1 Societies have resolved to approach the Government to protest against benefits paid to their members being 'taken account of, wheii the amount of (non-contributory) old age pensions is determined. DUAL PLAN: NON-CONTRIBUTORY AND CONTRIBUTORY. ' The fact of receiving a friendly society benefit docs.iiot disqualify a man lTdni receiving an old age pension, but the benefit, being treated as income, reduces the amount of his pension. The societies hold that such benefit should not count as income, as such a system penalises thrift. Last year the British Order of Oddfellows naked the Government to instruct tho pension authority "in considering the income of the applicants Hot to take into account any superannuation or olber nlloiyunco received from a friendly society." .Tho Order also nsked that tho pension ago be reduced from 70 to Gα.

The policy of tho Chancellor of the Ex-chequer,-Mr.. Lloyd-George, is", to confine tho principle of the now contributory insurance to people whb have Hot reached the age entitling them to tho State's non-coiitributory old age pension. ...

After all, writes one authority, old nge pensions form but a colnparatJTely small part of tho German system. Does the .German workman fall ill? State insurance comes to his aid. Is ho permanently invalided frohi work? Again, he gets a regular grant, whether he has reached the pension ago or not. All workers employed at wages belfl\V Ai a weak must b<) inßtlfed against sickness in Germany. The employers mttet pay ohe-thifd of the total contributions. The State Insists tin i minimum benefit comprising free medical at' tendance and supplies. lii addition, sick pnj has to bo allowed to the extent of half the *ages for a period of twenty-sis weeks. If the incapacity coiUiliues, tho liability is transferred ffbffl the siekiless , fuiid to the , accident fitiltl. .

Tho accident fund in Germdiiv is one of a far-reaching character, sitico the State has effectually iheilretl its \vt)fkefs" agftlßst invalidity. To this accident fund the wdr'kers make no. contribution. The whole liability falls upon the employer. A life pension must be paid even though the accident bo duo to n man's or a woman's own negligence. The amonnt of the pension is equal to two-thirds of the wages the worker Was oariiing. ■ ; The Imperial Insurance Board and the State Insurance Boards exsrcisD supreme control over the local committee's which carry-nut this part of the German pension system. '!fho full invalidity pension-thnt isj two-thirds of■ tho former wages—must be paid for life where an Occident renders a person permanently itufit for work.