PROVIDENT FUND

Evening Post, Volume CXXVI, Issue 60, 8 September 1938, Page 10

PROVIDENT FUND

SECURITY PROPOSALS

CONTRIBUTORS'RIGHTS

AN EXPLANATION

The rights of contributors to the Nay tional Provident Fund as they are af- \ fected by the proposals in the Social , Security Bill, now before Parliament, I have been closely investigated by "The ! Post" and the following explanation Jaas been made: — { The Social Security Bill provides > that in regard to National Provident t Fund contributors who joined the fund t before the passing of the National Ex i penditure Adjustment Act, 1932, that the Commission is to ascertain (a) the j [ amount that would have been received i 1 under the legislation existing on the | r passing of the National Provident] Fund Act, 1926, at the rates of old age pensions then applying (17s 6d) and, (b) the amount that the contributor would obtain if the other provisions! of the Bill applied. That is to say, taking the National Provident Fund pension into account as "other income." Whichever calculation gives the larger amount that amount is to be paid to the contributor who applies for age benefit. Some examples are as follows: — Weekly. £ s. d. National Provident Fund pension 0 10 0 Old age pension (at 1926 rate) 0 17 6 Total £1 7 6 Same contributor, N.P.F. pension 0 10 0 Social security benefit — 110 0 Total £2 0 0 This contributor would choose the latter amount. £ s. d. N.P^F. pension 110 0 Old-age pension (1926 rates) . 0 17 6 Total ;.L 2 7 6 Same contributor, N.P.F. pension •• • 1 10 0 Social security age benefit .. 1 0 0 Total 2 10 0 This man also would choose the latter amount. N.P.F. pension 2 0 0 Old-age pension (1926 rate) . 0 17 6 Total 2 17 6 Same contributor, N.P.F. pension 2 0 0 Social security age benefit .. 010 0 Total 2 10 0 This, man would choose the former calculation. Overriding- the above provisions, however, if any contributor to the National Provident Fund is at present receiving an old-age pension of a greater amount than he would receive under either of the above calculations, his age benefit is not to be reduced below that amount. WIDOWS' RIGHTS. The same considerations apply to the widows of contributors1 joined the National Provident Fund after the passing of the Act in 1926 and before the passing of the National Expenditure Adjustment Act in May, 1932. The right for a widow's pension under the National Provident Fund to beexr empt income was not introduced until the 1926 Act, and was discontinued by the National. Expenditure Adjustment Act in 1932. The contract rights therefore only apply to widows whose hjusbands joined the fund between those dates. The following are some examples:— £ s. d. Widow With three children .under 14, N.P.F. pension . 1 10 0 Widow's pension (1926 rate) 2 0 0 Total '.....' 3 10 0 Same widow, N.P.F. pension 110 0 Social security widow's benefit > 2 15 0 | Total 4 5 0 ' This widow would choose the latter calculation. Widow with five children, N.P.F. pension 117 6 Widow's pension (1926 r?ite) 210 0 Total 4, 7 6 Same widow, N.P.F. pension 1 17 6 Social security widow's benefit ...."........ 3 7 6 Total 5 5 0 This widow would also choose the latter calculation.