PROVIDENT FUND

Evening Post, Volume 32, Issue 32, 6 August 1931, Page 20

PROVIDENT FUND

THE SALARY CUTS

REMOVING DIFFICULTIES

I The removal of certain difficulties | which have arisen in tho administration of tho National Provident Fund is aimed at in tho National Provident Fund Amendment Bill, which was read' a second time in tho House of Keprcsentatiyes yesterday. Moving the second reading, the Post-master-Genoral (the Hon. J. B. Donald) explained the provisions of tho Bill on the "lines 'of tho summary already published. The Bill, he said, placed contributors to tho fund under superannuation schemes on the same bnsis as Civil Servants, this provision being made necessary as a'result of the "cuts" made in salaries. There was also a provision that claims for incapacity and maternity benefit had to be made within twelve months.

"Mr. A. Hamilton (Eeform, Wallace) said that -it. was', very difficult for a layman to" understand the Bill, and, it might be preferablo to send it to a Committee. -

Mr. Donald: "It is placing tho contributors on tho same basis "as the Public servants." Mr. Hamilton asked for information regarding the number of local bodies or firms, which had joined the National Provident Fund scheme. Steps should ;be taken to make- it possible for more employees to> join the fund. V'Mr. Donald: "Wo-must fcecp it financial."

. Mr.'Hamilton: "Tho.scheme has not grown to the extent it should have." He considered that the scheme could be extended materially to the benefit of a JaTge number of people. If the fund was sound on a small basis,"there was 'no reason why it-should not be sound when it'was extended. '

Mr. M. J. Savage (Labour, Auckland West) said that he would like an assurance that contributors were left in the same position as they were before. Mr. Donald.: "Tha.t is bo. Tho local authority- has the decision aa to whether the'contributors should continue at the higher rate or notl" Mr. W. E. Barnard (Labour, Napier) agreed; that the Bill should be referred to a Committee. It might be possible to widen the present scope of the scheme, and that very important question be considered by a Committee of the House. In reply, the Minister said that 53 firnwjrjinvolving 650- employees, and 109 local .bodies, involving 6550 employees, were.linked up with the fund. Provided that local bodies were satisfied, the Department was prepared that employees 'should continue to pay on the old salary. The fund at the present time .totalled over £3,000,000, and there were 31,000 members. He agreed that, if possible, the fund should be extended, and so reduce the amount of, the pen[sions bill, and he,hoped that some day a> scheme, would be inaugurated embracing the whole of the people of the Dominion, >