SOCIAL SECURITY SCHEME

Greymouth Evening Star, 9 March 1939, Page 8

SOCIAL SECURITY SCHEME

Hl-t.-KC-r ON <U<BV SOCIBTIHB. ( ■'So far, we have not lost any members, but. new members are not coming forward as they did before the introduction of the scheme,’’ said the secretary of one of the leading friendly societies in Gerymouth, when asked to comment, on the effect of the Government’s Social Security Act on the membership of the Society. “We havenot made, any members so far this year,’’ ho added, “but we believe that wo will receive, applications for membership as soon as the working of the Act. is understood. The quarterly contributions of our members will be reduced by the amount now paid as medical and hospital levies, and, for the reduced payment, they will be entitled to sick pay, death benefit, and [funeral allowance. It has to be remembered that the common illness of the average person extends little over a 'week or a fortnight, and whereas sick pay under the Social Security Act commences on the eighth day of illness. lodge sick pay commences on the first day. Again, except in the ease of miners, there is no provision in the Act for funeral insurance or benevolent benefits. Further, a member of a friendly society can receive sick pay from his Lodge and also from the Security Scheme, provided his total income while incapacitated does not exceed £5 a week. When a comparison is made between our contributions for these benefits, and the premium payable for death benefit only, under an ordinary life policy, wo do not anticipate a shortage of new members,” he concluded. An officer of another Society stated that his lodge had not made any new members in the past 12 months, and he added that lapses in that period had been much heavier than in previous years . It was, no doubt, an effect of Social Security, which he was sure was going to deal a serious blow to the friendly societies . “I have given this matter careful thought,” he continued, “and on going through the lists of sick payments in the last few years, T find that quite 50 per cent, of the claims wore for illnesses of 10 days and under, so the lodge has an advantage over the Social Security Act in that respect, as Social Security sick pay doos not commence until the eighth day of illness.” Friendly societies. he continued, could compete on more equitable terms with the Government's scheme, if they made sick pay payable for only the first week, which iwas the week not covered by the Social Security Act, and increased the rate of pay even to double the present amount. Funeral benefits could still be covered, but contributions could be reduced absolutely to a minimum. Hospital and medical benefits and sick pay after the first week could be cut out, as they were covered by the new scheme. Friendly societies would probably retain memand .gain more with a scheme based on those lines.

The secretary of another lodge said that his organisation had in the past 12 months, secured less than one-half the new members it gained in the previous year. However, it was considered that likely members were “marking time,” to a great extent, until they understood particulars of the benefits to be paid by the Social Security Act. He also pointed out that sick pay paid out by his lodge in recent years covered in more than half the cases, illnesses of 10 days and less, a period not covered by the Government scheme. He added that last year his society paid out over £3OO in sick pay, and of these cases a negligible number extended over 10 days. “Except in that we are not securing many new members, we have not felt, any effect of the Social Security Scheme yet,”- said the fourth lodgQ secretary approached. “We have some members on our lists who contribute only for hospital and medical benefits, and as these amenities are covered in the Act, we will probably lose some of those, when the scheme comes into oiiaration. However, none has so far t@t us that he is dropping out because of the Social Security.”