CONTRIBUTORY PENSIONS

NZ Truth, Issue 968, 18 October 1924, Page 7

CONTRIBUTORY PENSIONS

-♦ Minister Is Keen But is the Cabinet Game? (From "Truth's" Parliamentary Rep.) A bright little picture was painted by the Minister of Pensions when ie reported the result of his investigations into the possibilities of a contributory system of pensions for everybody. It is generally admitted that the present patchwork. method of granting inadequate pensions is absolutely unsatisfactory, and the feeling is growing that the only true remedy is to make. a clean sweep of the whole business and start afresh. The two Opposition parties have been clamoring for something of this sort for some time past, and although, Minister Anderson took the House into his confidence without discussing the matter either with the Reform Party or with Cabinet, it is interesting to learn that he is prepared to delve fur- ] ther into it and may even go the length of introducing a Bill next session. t Any general pension scheme covering old age, invalidity, and widowhood must be on a contributory basis. Minister Anderson has m his mind a pension of° £4 weekly (what a difference to the pensions of to-day), and the question arises how much should be provided by the beneficiary and how much by the employer and the State. One of the difficulties of these compulsory contributory schemes is that quite a large number of persons are roped m against their wishes, and as the expenses of administration grow (and they always grow) it has been found, necessary m some countries to bring into such schemes people who are receiving salaries large enough to enable them to make satisfactory^provision for their old age without relyr ing upon outside or State aid. Such contributors are apt to lose sight of the fact that the general influence of these schemes is for the benefit of tho whole community and that while they may be carrying a certain proportion of the burden of administration of a scheme which they do not desire and from which they do not" wish to receive any benefit (although they will take it), the fact remains' that the very existence of the scheme reduces taxation m other directions, as, for instance/in the way of charitable aid. The public will await with great interest any further development of Minister Anderson's proposals.