NATIONAL SUPERANNUATION

Greymouth Evening Star, 15 March 1937, Page 3

NATIONAL SUPERANNUATION

SHILLING IN THE POUND LEVY? [PER press association.] AUCKLAND, March 13. Probable features of the national superannuation scheme under preparation by the Government were outlined this morning by Mr. J. Elliott, one of the national representatives on the Railway Superannuation Board. The Government said Mr. Elliott, thought, that the scheme would cost approximately £14,000,000 to launch. This would be necessary in the initial stages for the purpose of granting universal benefits which would accrue immediately the scheme was launched, because the suggested scheme would eliminate all non-contributory pensions now in existence.

Although no really authentic information was obtainable about the scheme, the purport of the bill suggested that 1/-in the £ would be levied us the contribution. Membership would probably include, all between the ages of 16 and 60. “K will undoubtedly come into operation this year,” said Mr. Elliott. “Ar. present the country is being levied between £3.000,000 and £4,00,000 annually for non-contributory pensions.” So far as the £14,000,000 was concerned, the superannuation tax would probably yield about 50 per cent., while the other £7 000,000 would come direct from the Consolidated Fund. A committee of. the House of Representatives was dealing with the measure, which would probably be the most far-reaching humanitarian legislation enacted in this country. Mr. Elliott said that it had been suggested that all those who were members of the superannuation schemes would be given the option of joining the compulsory scheme or remain as they were.

“The Government must be wary of this, as the voluntary withdrawing of comparatively young men from the State superannuation funds would weaken the stability of the present State funds.”