NATIONAL ANNUITIES.

Lake County Press, Issue 2348, 27 October 1910, Page 5

NATIONAL ANNUITIES.

The National Provident Fund Bill, which is an amplification of last year’s National Annuities Bill, and which has been introduced by Governor’s message, provides foxnational pensions, accident insurance, and State aid in maternity cases. In referring in the house to the Bill the Prime Minister stated that last year’s Bill had not gone far enough, and he had decided to submit a more important measure. The new Bill provided for the establishment of a National Provident Fund, contributors /to which would be enabled and encouraged to make provisions for old-age and sickness and the maintenance of widows and orphans. The fund would be subsidised by the Government in the same way as the public superannuation fund. Any person resident in New Zealand could become a contributor between the ages of 16 and 45 years if his income did not exceed £2OO per annum. The contributions would be weekly, and the amount depended (1) on the age at first payment, (2) on the amount of pension elected; To secure a pension of 10s a week the weekly payment would vary from 9d at the age of 16 to 4s lid at the age of 45. Provision was made for the payment of a lump contribution in advance for the benefit of those who might fall into arrears. A contributor would be entitled to withdraw at any time and receive the whole of his contributions less any payments received. The benefits secured would be pensions at the ago of 60 varying from 10s to 40s a week; payment to widows and orphans if the contributor died after five years’ contributions amounting to 7s 6d a week, payable for each child under the ago of 14 years, and also to the widow as long as she had any child under 14 years of age dependent on her. There was a sickness and accident insurance scheme also by which after five years a contributor incapacitated for more than three months received 7s 6d a week for children dependent on him. An amount not exceeding £6 would be paid to any continuous contributor earning not more than £2OO if his wife gave birth to a child. This would enable doctors’ fees to bo paid as well as an amount sufficient to compensate for the inability of the mother to work during the time she was laid up. As an illustration of the operation of the scheme a man who joined at 25 yeai-s elected to pay fifteenpence per week. Subsequently he married and had four children. He received the following benefits: A pension of 10s a week at 60 for the rest of his life ; an allowance of 30s a week during any peiiod of incapacity exceeding three months ; on his death an allowance to his wife and children of £1 17s 6d a week so long as the children were under 14 years; the right at any time on giving 12 months’ notice to obtain a refund of all payments, and £6 in respect birth of each of his children. Sir JosejflP-.Ward also stated that the proposal in reference to cases of maternity was substituted for the proposal made in an amendment to the Hospital and Charitable Aid Board. The Bill has been read a first time. Any provision enabling and encouraging contributors to make provision for old age and sickness, besides providing for the maintenance of widows and orphans, should be a welcome addition on our Statutes. It is not likely there will be any general opposition to the Bill. Certain amendments and proposals will doubtless be recommended, and those may be necessary to remedy any apparent imperfections in the measure.