SUPERANNUATION SCHEME

Hawke's Bay Tribune, Volume XIX, Issue 281, 12 November 1929, Page 4

SUPERANNUATION SCHEME

FOR H.B. “TRIBUNE” STAFF

The directors of the “H.B. Tribune’’ have introduced into their office a scheme of superannuation tor their employees, which has recently been inaugurated by the New Zealand Government, through the National Provident Fund Department. The firm has set aside a sum of £2OO per annum to be applied to pay half the cost of the fund for the staff. The employees contribute a further £2OO, and at the age of 60 a retiring allowance is provided for the remainder of the contributor’s life. The fund also includes a maternity benefit of £6, incapacity pay for a family where the husband becomes an invalid for a prolonged period, and a widow’s and children's benefit where an emplovee dies leaving young children. This benefit is such that a widow, being left with four young children aged, say, from one to seven years, would receive benefits aggregating to an amount of £llOO. Where a larger family is left the benefit is greater; in fact, it is in proportion to the size of the family, and the ages of the children, and applies to all children under 14 years of age. Should 1 an employee complete two years of service with the firm as from the date of the commencement of membership of the fund, he will, should he leave the firm, have the whole membership transferred to him, and he may link up with any other firm that has the scheme in operation ; or he may continue membership as a private individual, either at the whole or at a reduced rate; or. if .unable to continue he may apply for and receive a refund of contributions in terms of the Act. Should he complete less than two years’ seivice with the firm his own portion of the contract is transferred to him and the Government refunds to the firm the amount it has contributed on his account.

VALUE OF PROVISION

The value to a staff of such a provision as this superannuation scheme will be obvious when it is stated that a young man of 21 years would contribute 2/- per week, and his employer a similar amount to prbvide for a pension of £2 per week at the age of 60. Higher pensions could be obtained by increasing the rate, but iu the case quoted the total paid into the fund will be £4OO altogethei — £2OO by the man and £2OO by the firm. For this amount a pension of £lO4 per annum will be given at the age of 60, and the man's family protected during the earlier years of membership. New Zealand statistics show that males reaching the age of 60 in this country live on the average for a further 16 years, so that a pensioner stands to get £1664 altogether in pension if he lives to the age of 76. If. however, he dies before drawing all his own and his employer’s contributions the Government undertakes to refund to his estate the difference between what has been paid in and what he has drawn out in pension. There is. of course, no limit of time up to which he may continue to draw the pension. It will he paid from the age of 60 up to the date of his decease.

GOVERNMENT’S AID.

The Government helps the fund by running it without charging anything to contributors for management expenses and in addition to this adds a subsidy of 25 per cent, to the rate of the first £2 of each person’s pension and pays the cost of all maternity benefits. The Government also guarantees the fund. Amounts paid in by employer and employee are not subject to income tax. The problem of providing for old and faithful servants has caused employers much thought. It is also generally conceded that a man should be free to enjoy a little leisure in his declining years. We would, therefore, commend the scheme to those employers whose minds are exercised by this pressing need. After the scheme had been explained by Mr. Cumberbeach to the employees of the “H.B. Tribune” and heartily endorsed by them, a vote of thanks to the firm for its generous policy was carried with acclamation by all present.