SOCIAL SECURITY

New Zealand Herald, Volume LXXV, Issue 23109, 6 August 1938, Page 20

SOCIAL SECURITY

PENSION PROVISIONS OTHER SCHEMES COMPARED UNITED STATES AND BRITAIN Under the proposed State superannuation scheme everyone at the age of 60 -vears will receive £1 10s a week, subject to a total income limitation that is understood 'to he £3OO. The contribution for this, the health service and other benefits is expected to be Is in the pound oi\ all income. The age at which a person will become eligible for a non-contributory old-ago pension in the , United States will be 65 years when all the State schemes come into lino. Prior to the passing of the Federal Social Security Act, 1935, 28 States and two territories had old-age pension laws, 22 being effective. ,There were 20 States without such laws and six where legislation was ineffective. In many States where systems were in operation 70 j'ears was the qualifying age and benefits averaged a little over 16 dollars a month. Federal Stipulations The Federal law provides aid to every State with a pension scheme for needy persons of 65 years and over who are not iu a public institution. The subsidy is to amount to one-half of the benefit paid, with a maximum of 15 dollars a month. Thus, if any State pays more than 30 dollars (roughly £6) it must bear the full cost of the additional sum. If it pavs less than 30 dollars the Federal (jovernmeut will meet only half the actual pension. By 1940 it is laid down tho ago of eligibility must not exceed 65 years, this giving States with a higher age minimum time in which to make the necessary financial adjustments. No Federal contribution will be made toward pensions paid at less than 65 years.

Under the old-age insurance scheme appb'ing to peoplo at 65 pensions will range from 10 to 85 dollars a month. The contributory taxes begin at 1 per cent on employee and employer, rising to 3 per cent in 12 years. Britain's Schemes The widows, orphans, and old-age contributory pensions scheme of Great Britain, which became fully operative in 1928 and is interlocked with the National Health Insurance Scheme, is compulsory. It provides a pension of 10s a week, with an allowance of 5s for the first child and <3s for each subsequent child to widows of insured until re-marriage or until they reach 70 years, when they will receive the oldage pension; 7s 6d a week to orphans •up to the age of 14, or, if at school, 16; and 10s a week to insured men and their wives on attaining the age of 65 and continuing until the beneficiaries become eligible for the old-age pension at 70, which they will be granted without a means test. The contribution by a man and his employer is s|d a week each. A woman pays 2}d and the employer 3d. Tie subsidy by the State covem in general the difference between expenditure and contribution income and in particular the whole cost of'pensions granted in respect of risks which matured before the scheme startod. The non-contributory old-age pension is 10s a week, the age of eligibility being 70 years, ; and the limit of other income allowed is £65 ss. The pension is paid on, a diminishing scalo when other ineorne rises. The total annual income of a couple over 70 each receiving the full pension cannot exceed £lB2 10s a year. Under the Australian National Insuri anco Scheme a man receives a pension | of £1 a week at 65-years and a-woman one of 15s at 60. Kate* of contribution are Is 6d a week for men and Is for women, with an equal contribution by the employer. The scheme is compulsory for all earning less than £365 a year.