SICK BENEFITS

New Zealand Herald, Volume LXXVI, Issue 23401, 18 July 1939, Page 11

SICK BENEFITS

EXTENT EXPLAINED EMPLOYERS' ATTITUDE COMMENT BY MINISTER NEW APPLICATION FORM [BT TELEGRAPH—-PRESS ASSOCIATION] WELLINGTON, Monday Explaining in detail to-day the working and extent of sickness benefits under the Social Security Act, the Hon. TV. E. Parry, who has temporary Ministerial control over the administration of the legislation, said he regretted that some employing bodies bad exhibited timidity as to the part tliey should play, particularly in regard to that section of the Act which provided sickness benefits. One or two bodies, he said, had decided to cease sick pay for their employees while on sick leave. That action seemed to bo promoted by a desire to relieve themselves of any responsibilities in that direction nnd throw the whole onus of providing adequate sickness benefits on the social security fund, without any consideration for the amount of benefits available from that source. I he attitude adopted by the Opunako .Electric-Power Board, for instance, he continued, could hardly be considered in the best interests of its employees, as. under the social security legislation sickness benefits were payable at limited rates, varying with the conjugal responsibilities of the incapacitated worker. Benefits and Income "Under the Act," the Minister said, sickness benefit rates varv from 20s a week for_ a single applicant, increased by los a week for a dependent wife and 5s for each dependent child, so as not to exceed £4 in any ouo case. Apart from these sickness benefits, the commission has a fixed scale of maximum allowable income (including benefit) that applicants of various conjugal classifications will be per- | mitted to receive before the maximum j rate of benefit in each case is reI duced. j "This scale is nt the rate of 40s a i week for a single person over 20 years, | £3 a week for a married man without dependent children,, increased by 5s a week for each dependent child under 16 years of age, until it reaches £4 a week in respect of a married man with a wife and four dependent children. "In view of the amount of other income applicants may have before the rate of sickness benefit is reduced it would be in the interests of employees generally if employing authorities were encouraged to provide sick pay benefits at Jeast up to the maximum rate of other income allowable. In addition as sickness benefit is not pa3*able out of the social security fund for the first seven days of incapacity, except in special circumstances, employers could give a considerable measure of relief to their workers by granting generous sick pay during this period. The Waiting Period "Criticism had been levelled at the imposition of a waiting period of seven days after the receipt of an application at the social security office before the benefit was payable, the Minister continued. As a general rule the qualifying period of seven days commenced from the date the application was received by the department, or the date of medical examination, whichever was the later. Applications, however, might be backdated up to a period of seven days, but not earlier than the day following the day the applicant ceased employment or the day when a doctor examined an applicant and certified him as incapable of work, whichever was the later. However, in view of the fact that because of ignorance of the procedure many people were delaying lodging their applications and consequently receiving less by way of sickness benefits than they would otherwise be entitled to. the commission had authorised in the meantime the backdating of applications to the date of medical examination or April 3, 1939, whichever was the later. Information Prom Applicants The Minister referred also to comments passed on the application form itself from the point of view of the detailed information required to be | furnished by applicants. "When it is realised, however," Mr. Parry said, "that sickness benefit is payable toi.an applicant both in respect_ of himself and bis dependants, certain questions must be asked so as to determine the degree of assistance the State should give in each case. "With the chairman of the Social | Security Mr. J. H. Boves, I have examined closely this form. As a result of our conference tho application form has been redrafted oil a more simplified basis < and, where necessary, it is proposed in future to obtain additional information by personal inquiry." The non-payment of benefits to applicants who applied for sickness benefit while they were in public hospital was touched on by the Minister. Prior to July, 1939, lie said, provided applicants could qualify, sickness benefits had been paid to them while they were in public hospitals, and dependants' portions continued in exactly tho same manner. Fostering Private Schemes Since July, however, when the hospital benefits scheme came into operation, the dependants' portions of benefits were continued as long as a worker remained incapacitated and eligible for tlie benefit, but the applicant's portion of the benefit was .stmly payable for a period of four weeks while ill a public hospital. Before the expiry of tho fourth week each case was reviewed and the question of whether the applicant's portion of tho benefit would bo continued at the full rates, at reduced rates or cancelled was determined in accordance with the merits of each individual case, action entirely at the discretion of the commission. "The Government is desirous," Mr. Parry added, Vof fostering contimianco of sick pay schemes by employers at least on a basis so that employees may obtain the full benefits provided under the Social Security Act."