CUTS IN PENSIONS

Hawera Star, Volume LI, 26 May 1932, Page 7

CUTS IN PENSIONS

EXCESSIVE DEDUCTIONS

In accordance with the promise made by the Prime Minister at the end of the emergency session of the New Zealand Parliament old age pensioners who were subjected to excessive reductions last month, owing to an interpretation of the National Expenditure Adjustment Act which was not in accordance with the Government’s intentions, received a refund on this month’s payments. At the time pensions were paid last month the Act had not been passed by Parliament, but as it was made retrospective the Pensions Department deduced 10 per cent, of the total pensions payable. As a result many (tensioners suffered outs which were greater than 10 per cent, of the amount they were actually receiving. An amendment was subsequently made to the Bill before it became law, providing that the reduction should apply only to the amount actually received and that it should not be based on the full amount that was payable.

According to the Act, however, a non-sion may be reduced aliai n at the. next renewal, when the reduction in the exemption for income from £52 to £39 a year will also operate. In some instances, if the Act is interpreted in this way, some pensioners will subsequently not be entitled to anything at all.