PENSIONS FOR ALL

Evening Post, Volume CXXIII, Issue 50, 1 March 1937, Page 10

PENSIONS FOR ALL

THE STATE SCHEME

A VOLUNTARY FEATURE

EXISTING FUNDS

(By Telegraph—Press Association.) CHRISTCHURCH, This Day.. Although details of the Government's superannuation scheme have not yet been worked out, the Prime Minister (the Rt. Hon. M. J. Say- , age) made it clear in an interview today that there was no intention of smashing existing superannuation institutions. "Our job," said Mr. Savage, ''is to m/T.e superannuation universal and to see that every person in New Zealand is covered. Those who are contributing to existing funds will have the option of coming into the State scheme voluntarily if they wish to do so, but there will be no compulsion in their case. We can't put a steam-roller over what is already in existence. We have got to dovetail the superannuation scheme of the future with what is existing today, always leaving the right of organisations now in existence to go on as they are going or to come into the new system." TO BE UNIVERSAL. Mr. Savage said that to this extent the State superannuation scheme would not be compulsory. However, the Government intended to see that superannuation was made universal and it was for those in private funds to decide whether it would pay them better to come into the State scheme or remain as they were.

"It is a difficult matter to utter the last word on the question at present," he added, "but we will be careful to see that we do not smash organisations that are now in existence. There is no question of confiscation of existing funds."

The Prime Minister was questioned regarding the probable amount of payments under the State scheme, but he said that that: had not been worked out. A committee was working on the scheme at present and was collecting information. He expected the legislation to be ready .when Parliament assembled in August, but in any case it would be passed next session, even if it meant sitting after the Christmas holidays. FRIENDLY SOCIETIES AND HEALTH SCHEME. Questioned regarding the position of friendly societies under the national health scheme, Mr. Savage said that they would bear the same relation to the health scheme as the existing superannuation funds bore to the superannuation scheme. "We have got to see that the machinery of the lodges will be utilised and not smashed," he said. "It doesn't matter what we take up, where there is any sort of service existing the best method of facing it is to take it with you."

The Prime Minister mentioned that the same position arose in connection with internal marketing. The Government had bought out one firm and its policy now was to get in touch with existing merchants in the trade to ensure co-ordination.