ANNUITY SCHEME.

Hawera & Normanby Star, Volume LI, Issue 9065, 10 April 1906, Page 7

ANNUITY SCHEME.

MR SEDDOIs .. PROPOSALS.

"If my scheme receives the support of the people of this colony, I will regard it as. the crowning event of my public life,'.' jsaid the Premier four months ago, when briefly alluding to an annuity scheme under which he 6aid every soul in the colony would be provided fox. We (Wellington. Post) understand that Mr Seddon intends to try and give effectto this imporfcamt proposal, and that it will, when more thoroughly matured, be explained in detail to the people of the colony and be eubsequently introduced, into Parliament.

It is not .intended that it shall interfere with the OJd-age Pensions Act, but in oouTse of time it will probably take its place. The details have not yet been worked out, but Mr Seddon's proposal is •understood to be that any person may put a sum — say £s—into5 — into a Government fund, to earn interest and compound interest, and b& subsidised by the Treasury. The Premier contends that it would pay the colony to do this, for the colony would have the ueo of the money, it would save the cost of- charitable aid, and as years jvent on there would be fewer and fewer people to go on the okF-ag& gension- fund. "Tha scheme will," said Mr "Seddon, "encourage thrift, and J hope the people will give it their support, and thus enable New Zealand again to give a lead to the world."

This scheme is a good deal like the j English Parliamentary scheme commonly kaown as Mr Chamberlain's scheme. Under this proposal there are three methods by which an annuity of 5s a week at 65 may be secured (a) by a cash deposit of £2 10s at 25, and an annual payment of 10s a year up <to 65. The State is to credit the depositor with an additional £10 at the date of his deposit. Interest would be allowed upon the total credit at 2£ per cent. This would work out »at a pension of 5s a week at 65. (b) The same except that the cash deposit would be £5 and the annual payment £1. In this case the State credit would be £15. This would admit of other benefits besides the 5s a week at 65, the chief being a provision for widows and children. (c) The deposit of 30s by a man or 25s by a woman in the post office, and' also insurance in any Bociety for am annuity of £6 10s for a man or £3 18s for a woman. In this case the State would double the 'annuity.

Mr Seddon's scheme will probably be found to be most like the first of these three methods, the annuity, of course, being higher— probably double— namely, 10s a week. As already stated, the intention is that the .new scheme shall run concurrency with the old age pensions for some years, but the Premier's contention is that to make a contributory scheme a success you must start when people are young— allowing the existing arrangement to go on until such tame as the other will supersede it.