More Light On Pensions, Health Scheme

Northern Advocate, 30 March 1938, Page 5

More Light On Pensions, Health Scheme

[Special To "Northern Advocate ”l WELLINGTON, This Day. The Government caucus called to consider the national superannuation and health service scheme, is continuing its deliberations to-day. Although the outstanding question of financing the big social welfare, scheme has been substantially settled, there are many problems which remain to be decided, and here the Select Committee of Investigation, which is commencing its work next Wednesday, will be of the greatest value to the Government. . The innovations would be comparatively simple if there were not already many superannuation, sickness and benefit schemes in existence by which a fairly substantial part of the community has already made some provision in these spheres, but the question is already being asked by Public Servants whether they are to be called upon to pay the proposed 1/ in the £ on their salary for the national scheme, while they are already contributing a similar amount, some of them a larger proportion up to 10 per cent., to various Public Service super- • annuation funds. v. < - : :

Adjustment Difficult. As the national scheme covers sick'- , ness benefits as well as a provision ifor . the old age, any readjustment of Public Servants’ payments will be difficult, but it is probably not beyond the compass of the Parliamentary Select Committee, after hearing evidence from contributors’ representatives, to suggest a reasonable compromise. The importance of the , Public Ser- , vice superannuation aspect can be gauged from the fact that three funds, the Government Railways, Public Service and Teachers’ Superannuation Funds, are now, carrying an annual liability for pensions totalling £259,220 and received by over 9,000 pensioners, while active contributors total 43,221. Friendly Societies whose members total 108,COO have built up sick and funeral funds totalling nearly £5,000,000, and they pay benefits annually of over £200,000. Their ex-v. perience is that the average 'sick benefit per member who is actually sick is £7 8/2 annually. All Friendly Societies are associated in the New Zealand Council, which , will present ‘ their case to the Parliamentary committee.

National Provident Fund. Another existing interest which the National scheme will have to consider is that of the National Provident Fund with 26,574 contributors who are paying for pension benefits ranging from 10/- to 40/- weekly, also mater- ';<} nity and incapacity benefits. Probably the largest class of all, though not so compactly grouped, are - the thousands of contributors to the pension funds of banks, insurance companies and' other large commer- ’ cial organisations,- while there are., others who have made individual provision for certain benefits through U insurance policies..