INSURANCE PLANS

Grey River Argus, 19 May 1938, Page 4

INSURANCE PLANS

Australian Bills VARIETY OF PENSIONS. MELBOURNE, May 5 ' Social benefits for 3,600,000 people, or more than half the population o» Australia, are included in the National Health and Pensions Insurance Bill explained in the House of Representatives at Canberra yesterday by the Federal Treasurer (Mr Casey). “The most far-reaching pldn of social reform that has been presented to the Federal Parliament,” was the description given by Mr Casey to the bill, which provides for compulsory weekly contributions by 1,-850,000 wage-earners and their employers. Proposals for national health and pensions insurance are included in two bills. The second bill, relating to the compulsory payment of contributions, is entitled the National Health and Pensions Insurace (Contributions) Bill. DETAILS OF THE CONTRIBUTORS. Sickness and pension payments will be received by wage-earners, -who, with their dependants, are estimated to comprise 52 per cent of the popu lation of Australia. The benefits are divided into two classes—those payable when the wage-earner is sick or disabled; and those payable when he is aged, or, in the event of his death, any pension due to his widow and orphans.

| The contributors will be:—l, All persons aged more than 14 years who are wage-earners under a contract of service, except: (a) Those persons not employed at manual labour whose rate of remuneration exceeds £365 a year, (b) Certain other limited classes which are indicated in the bill. 2. All employers of wage-earners Who are contributors. WEEKLY CONTRIBUTION RATES. The weekly contributions are to bo as follows: —Men: By employer, Is 6d by employee, Is 6d. Women: By employer, Is; by employee, Is. Juniors. By employer, 4d; by employee, 4d. Juniors will be entitled to medical benefits only. i To assist in meeting the gradual!'-'; increasing cost of the pension plan] contributions for men will increase b.Vi 6d after five years and by 6d more after 10 years. Women’s contributions will increase by fid after five years. In each case employers will bear halt the increased cost. LIST OF THE BENEFITS. The benefits under the scheme will be;-— (a) Medical treatment: Free medical attendance and treatment, including medicine and surgical appliances. ! (b) Sickness: Man, £1 a week; woman, 15s a week. (c) Disablement:Man, 15s a week; woman, 12s fid a week. In addition an allowance of 3s fid a week for each dependent, child aged less than 15 years. Disablement benefit, like sickness benefit, is a payment during incapacity from sickness, and comes into force when the right to sickness benefit has been exhausted; that is, after more than 2' weeks of incapacity. Sickness benefit is available after 26 contributions have been paid and disablement benefit after 104 con tributions have been paid. Disablement benefits may be paid until the age is reached at z which old-age pensions are payable—6s years for men and 60 years for women. PROVISIONS REGARDING PENSIONS Pensions to be paid are as follows: —-(a) Old-age. Man: £1 a week from]

65 years to death; woman, 15s a week from 60 years to death. In each case an additional allowance of 3s 6d a week for each dependent child aged less than 15 years These pensioners will be entitled also to free., medical attention, treatment and medicine.

(b) Widow’s. —15s a week, or 12s 6d until 1944, for life (or until remarriage) to the widow of an insured man, and an allowance of 3s 6d -i week .for each dependent child aged less than 15 years. (c) Orphan’s.—7s 6d a week fo*’ each orphan child aged less than 15 years of an insured person (including insured' widows). Special provisions arc made for| women contributors, who, after their, marriage, continue as voluntary con-I tributors. No. change is made in the, existing rates or conditions of old-age and invalid pensions. READY TO AID REFORM. “The advent of national insurance is the introduction of just anothe>system of social reform, and, as manufacturers, we are always ready to play our part for such a desirable object,” said the deputy president of the Victorian Chamber of Manufacturers, Mr R; F. Sanderson. Naturally the employers’ contributions would result in an increase in the cost of production, he said. That, had to be accepted. But the fear had arisen in the minds of manufacturers that they might also be called upon to meet the contributions of the employees by an adjustment of the cost of living. 4 That was a matter, of course, for the Arbitration Court to decide. Ifj employers had to pay both contribu-i lions, however, the total cost to in-' dustry would probably be- between £14,000,000 and £16,000.000 a year.

IMPORTANT OBJECTION BY. EMPLOYERS.

While admitting (he merits of tlm national insurance plan as a social reform, employers’ representatives in Melbourne strongly protested yesterday against any suggestion that, by a rise in the cost of living, they should be called upon to pay both the employers’ and the employees’ contributions, the total cost of which might be £16,000,000 a year.

Speaking for the Associated Chambers of Commerce, the secretary. Mr T. A. Lennox-Bigger. said: “Without doubt it will place a very large burden on commerce and industry, although, if in the years to come the annual public charge •or old-age and invalid pensions is reduced, the bene fits of the plan will gradually become evident. ,‘We would strenuously oppose anv plan which does not provide for n reasonable contribution by the insured.” added Mr. Lennox-Bigger. “Anv increase in the cost of living to cover the employees’ contribution would negative ttys principle at the outset.”