PENSIONS SCHEME

New Zealand Herald, Volume LXXV, Issue 23026, 2 May 1938, Page 10

PENSIONS SCHEME

"BIAS AGAINST THRIFT" DEPARTURE FROM PRINCIPLE COUNTY STAFFS' POSITION [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Saturday "In the opinion e of this organisation, the State superannuation proposal is a misnomer, as it is simply an extension of the present pension system," said the Counties' Association in a statement to the Select Parliamentary Committee hearing views concerning the Government's national health and superannuation scheme. "The cardinal principle of any superannuation scheme is that every contributor participates in the benefits. This principle does not permeate the whole of this proposal, inasmuch as a 'means test' woujd disqualify many contributors to the national scheme from participation in any benefits. "This departure from the main principle of superannuation is considered grossly unfair, with the bias loaded against thrift. No matter what anyone's income is, he should participate in any benefits provided he is a contributor.

"Since the employees of many county councils are contributors to the National Provident Fund, or to some group insurance scheme, this organisation is perturbed over the effect on these men of State superannuation. "The National Provident Fund Act, 1926, provides superannuation under the most favourable terms for employees of local authorities, since (1,) it is State guaranteed, (2) it is subsidised 25 per cent of the contributions received, (c) the administration expenses are borne by the State, and (d) the scheme is certified by qualified actuaries to be financially sound. "The superannuation scheme should not bo undertaken until health services have been established, but should bo the next in sequence. All_ permanent county council employees tvho aro,at present not in any scheme should bo compelled to join the National Provident Fund. All county employees who are at present in a group assurance scheme should remain in it and should not be asked to join the State superannuation scheme. These men should receive some adjustment of their social security levy seeing that they are contributing to their own superannuation."