LODGE SICK PAY

Evening Post, Volume CXXXVI, Issue 67, 16 September 1943, Page 7

LODGE SICK PAY

EFFECT ON PENSIONS

On several occasions during the past few years the Dominion Council or Friendly Societies has made representations to the Government for the removal of an anomaly whereby lodge sick pay is deducted from assessments when the Social Security Department is computing age .benefits, economic and invalidity pensions. In these piotests the council has been supported by the New Zealand Returned Services Association, which has taken the matter ud from the point of view, of the returned soldier who has been granted either a full soldiers' pension or an economic pension and receives me amount of pension less the amount ol sick pay received from his lodge, for which benefit he has contributed for some years. Invalidity pensions are dealt with by the Department in a similar way. . Persons receiving age benefits under the Social Security Act (i.e., between the ages of 60 and 65) also have their assessments reduced because of lodge sick pay received by them, although they have contracted to receive the latter benefit under the Friendly Societies Act. ; , The anomaly has .been admitted to exist by certain Cabinet Ministers, but the efforts of both the friendly societies and the R.S.A. have not been successful in having the matter rectified. T-he Dominion Council, therefore, has issued a circular to all affiliated societies, provincial conveners, and local friendly society councils throughout the Dominion to have the matter raised at meetings of candidates held in connection with the forthcoming elections.

THE QUESTIONNAIRE

The following is the questionnaire prepared by the executive of the council* — Are you in favour of lodge sick pay being excluded ill assessing income when computing age benefits, economic and invalidity pensions? (a) Soldiers economic pensions: Do you consider that the injustice manifest in cases such as the following should be remedied? Example: A returned soldier (1914-18 war) is drawing the full soldiers' and economic pensions, less the amount of £13 per annum which, is the amount of sick pay paid to him by his lodge. By virtue of the fact that he is not listed as a full pensioner he must pay the social security registration fee of 5s per quarter, and his actual receipts are reduced by reason of his having to pay his lodge contributions. He is also penalised in so far as he is not eligible for travelling concessions which are granted to full pensioners. (Note: Invalidity pensions are on exactly the same basis as economic pensions.) (b) Age benefits: Are you in favour of the removal of the anomaly existing in connection with age benefits by which members of the community who are also members of a friendly society are penalised? As an example, a person aged between 60 and 65 years in receipt of 30s per week, plus small cost-of-living bonus, and £1 per week from all other sources. If he has been thrifty and provided £1 per week by way of interest or rents, any sick pay he may draw from his lodge (ranging from 20s down to 5s per week) immediately affects his age benefit by reducing the pension by the same weekly amount.