SICKNESS BENEFITS

Greymouth Evening Star, 18 July 1939, Page 5

SICKNESS BENEFITS

EXPLANATION BY MINISTER.

APPLICATION FORM SIMPLIFIED

[PER PRESS ASSOCIATION.]

WELLINGTON, July 17. Explaining in detail to-day the working and extent, of the sickness benefits under the Social Security Act, Mr. Parry, who has temporary Ministerial control over the administration of the legislation, said he regretted that some employing bodies had exhibited timidity as to the part they should play, with particular reference to that section of the Act which provided sickness benefits. One or two other

bodies, he said, had decided to cease

sick pay for their employees while on sick leave. That action seemed to be promoted by a desire to relieve themselves of any responsibilities in that direction, and throw the whole onus of providing adequate sickness benefits on the social security fund, without any consideration for the amount of the benefits available from that source.

The attitude adopted by the Opui ake Electric Power Board, .for it stance, could hardly be considered ii

the best interests of its employees, as under the social security legislation sickness benefits were payable at limited rates, varying with the conjugal responsibilities of the incapacitated worker. Under the Act, the Minister said, sickness benefit rates varied from 20/- a. week for a single applicant, increased by 15/- a. week for a dependent wife, and 5/- for each dependent child, so as not to exceed £4 in any one case.

“Apart from these sickness benefits,” said Mr. Parry, “the commission has fixed a scale of maximum allowable income (including benefit) that applicants of various conjugal classifications will be permitted to receive

before the maximum rate of benefit in each case is reduced. This scale is

at the rate of 40/- a week for a single person over 20 years of age, £3 a week for a married man without dependent children, increased, by 5/- a week for each dependent child under 10 years of age, until it reaches £4 a week in respect of a married man with a wife and four dependent children. In view of the amount of other income applicants may have before the rate of sickness benefit is reduced, it would be in the interests of employees generally if employing authorities were encouraged to provide sick pay benefits at least up. to the maximum rate of other income allowable. In addition, as the sickness benefit is not payable out of the social security fund for the first seven days of incapacity, except in special circumstances, employers could give a considerable measure of relief to their workers by granting generous sick pay during this period.” WAITING PERIOD. Criticism had been levelled at the imposition of a waiting period of seven days after receipt of an application at the Social Security Office before the benefit was payable, the Minister said. As a general rule, the qualifying period of seven days commenced from the date the application was received by the department, or the date of medical examination, whichever was the later. Applications, however, might be backdated up to a period of seven days, but not earlier than the day following the day applicant ceased employment, or the day when a doctor examined the applicant, and certified him as incapable of work, whichever was, the later. However, as through -ignorance of the procedure, many persons were delaying lodging their applications, and consequently receiving less by way of sickness benefits than they would otherwise be entitled to, the commission had authorised in the meantime the backdating of applications to the date of the medical examination, or April 3, 1939, whichever was the later.

The Minister referred also to the comments passed on the application form itself from the point of view of the detailed information required to be furnished by applicants. “When it is realised, however,” Mr. Parry said, “that the sickness benefit is payable to an applicant both in respect of himself and his dependents, certain questions must be asked, so' as to determine the degree of assistance the State should give in each case. With the chairman of the Social Security Commission (Mr. J. H. Boyes), I have examined closely this form. As a result of our conference, the application form has been redrafted on a more simplified basis, and, where necessary, it is proposed in future to obtain additional information by personal inquiry.” The nonpayment of benefits to applicants who applied for the sickness

benefit while they were in a public hospital was mentioned by the Minister. Before July, 1939, he said, provided applicants could qualify, the sickness benefits had been paid to them while they were in public hospitals, and the dependants’ portions continued in exactly the same manner. Since July, however, when the hospital benefits scheme came into operation, the dependants’ portions of the benefits were continued as long as

the worker remained incapacitated and eligible for the benefit; but the applicant’s portion of the benefit was only payable for a period of four weeks while in a public hospital. Before the expiry of the fourth week, each case was reviewed, and the question whether the applicant’s portion of the benefit would be continued at. full rates, at reduced rates, or cancelled, was determined in accordance with the merits and circumstances of each individual case, the' action being en-

tirely at the discretion of the commission.

“The Government is desirous,’’ Mr. Parry, added, “of fostering the continuance of sick pay schemes by employers. at least on a basis so that employees may obtain the full benefits provided under the Social Security Act. Details of tlie scope of the legislation I have given will help all parties to a better understanding of the operation of the sickness benefits provided, and clear the way to their smooth working.”