PENSIONS LEGISLATION

Greymouth Evening Star, 17 June 1936, Page 14

PENSIONS LEGISLATION

COMPREHENSIVE PROPOSALS The pensions legislation which is to occupy the attention of Parliament when the session is resumed next month will provide the basis for the national superannuation scheme to be inaugurated next year. i Details of the proposed changes in the pensions system have not yet been announced, but sufficient has been revealed to indicate that it is the intention of the Government to make much more liberal provision for those who are a claim on the State. It is proposed as part of the Government’s programme to introduce invalidity pensions which will benefit about 17,000 persons not at present included in pensions schemes. It is understood that the invalidity pensions will be payable to persons from the age of 18 years. In regard to old age pensions, radical changes are likely. It has been suggested that the Government proposes to reduce the age at which men can qualify for the pension from G 5 to 60 years, and to make provision for women at the age of 57 or 58 instead of 60 years. Another important change which it is understood the Government has under consideration is the reduction of the residential period in order to qualify for a pension, from twenty-five years to fifteen years. For many years efforts have been made to secure reciprocal pensions agreements with other countries so that a person, who has reached the qualifying age, but has not the necessary residential qualification, shall not be debarred from receiving assistance. These efforts, however, have not proved successful, and it may be the intention of the Government to give a lead so far as New Zealand is concerned in the hope that other countries within the Empire will follow the example. An increase of at least half a crown a *week in the amount of the old age pension is also understood to be included in the Government’s proposals.

So far as the national superannuation scheme is concerned it is not intended to make a start until next year, and nothing definite is known of what the Government has in view. The general opinion, however, is that the present unemployment tax, or a portion of it, will be maintained in order to provide the national superannuation fund, and that, as the Government will be relieved of the direct cost of old age pensions, it will make a substantial annual contribution to the fund, especially in the early years of the scheme, when persons who have contributed very little to the fund will be a charge upon it.