SOCIAL SECURITY LEGISLATION

Otago Daily Times, Issue 23577, 13 August 1938, Page 12

SOCIAL SECURITY LEGISLATION

MEASURE INTRODUCED IN HOUSE PROVISION MADE FOR WIDE BENEFITS GRADUAL OPERATION OF UNIVERSAL PLAN (Special to Daily Times) i , WELLINGTON, Aug. 12. The Social Security Bill was introduced in the House of Representatives this afternoon by the Minister of Finance, Idr W. Nash. The Bill provides the following benefits:— All persons aged 60 years, if fully qualified, will receive £1 10s a week. The income qualifications are: For an unmarried person the basic rate of the benefit is reducible by £1 for every .61 of other income exceeding £52 a year; that is, the full rate of the benefit can be received while the applicant also has £1 a week from elsewhere, making a total of £2 10s a week. For a married couple, both of whom are qualified, the joint benefits will be reduced by £1 for every £1 of total other income received by the married couple in excess of £52 per annum. For example, a mamed couple, both of whom are qualified, can receive £3 age benefit between them, plus £1 from other sources, making a total of £4 a week. If the other income is more than £1 a week, the amount of age benefit is reduced accordingly., In the case of a married person whose wife or husband is not qualified the benefit will be £1 10s a week, and the allowable income is £2 10s a week, making a total of £4 a week. Where a husband is not qualified to support his wife, and she is not qualified for a benefit, the Commission may grant an increase of the benefit of 5s a week, plus a further 5s for each child under the age of 16 years. Applicants must have resided in New Zealand for not less than the 10 years immediately preceding the date of application if in New Zealand on March 15, 1938, or for 20 years after that date. In the computation of income, receipts not counted as income include funeral benefit from a friendly society, fire insurance moneys, capital received under the will of a deceased husband or wife, compensation or damages in respect of bodily injury up to £SOO if, used for approved purposes. No deduction from benefit will be made in respect of furniture and personal effects, ownership of a house used as a home, ownership of land or other such property, interest in mortgages, interest in insurance policies or annuities, The income, however, derived from the above properties, etc., will be taken into account when assessing the pension. For ths establishment of the special Social Security Department, which will replace the present Pensions Department and may absorb certain branches of other departments, it is proposed to place the new department under the administrative control of three commissioners, acting under the direction of the Minister. . A special, section of the Bill provides for a gradual introduction of universal superannuation. It is proposed as from April 1, 1940, to pay all citizens over the age of 65 years £lO per annum, this sum to be increased by £2 Ids each year until the superannuation reaches £7B per annum, and entirely supersedes the age benefit of the same amount, so that universal superannuation will be: 1940, <£10; 19*1» £l2 10s; 1942, £is; and so on until £7B is reached. ' : '• In the meantime, from 1940 the universal superannuation will form part of the age benefit for persons 65 years or over. The only qualifications will be in regard to residence and payment of contributions. Applicants who were in New Zealand on March 15, 1939, must have been in the country for 10 years immediately prior to application, and all others SO years.

PENSION BENEFITS '.■ ■ ■ i WIDOWS AND ORPHANS PROVISION FOR DESERTED WIVES HIGHER SCALE FOR ORPHANS A widow with one child under 16 will receive per week £1 15s; with two children, £2 ss; three children, £2 15s; four children, £3 ss, with 10s per week extra for each child up to a maximum of £4 10s per week. No deductions from the benefit are made unless other income is more than £1 10s per week. Widows Without Children Under 16. —For fully-qualified widows until they receive the age benefit on reaching the age of 60, £1 per week additional to allowable income of £1 per week. The qualifications are:—(l) A widow the duration of whose marriage (plus the time during which while a widow she cared for her children under the age of 16) was not less than 15 years; (2) anv widow who loses her husband after she is 50 year* of age will receive the benefit so long as her marriage has continued for five years; (3) any other widow receives the benefit on reaching the age of 50 if her marriage occurred not less than 15 years previously and continued for 10 years, and she was widowed after she reached 40 years of age. Special qualifications: Women who have been deserted and have taken maintenance proceedings will, if their husbands' whereabouts are unknown, qualify as widows if they have dependent children Under 16 years of age, or in any other case at the discretion of the commissioners. Women whose husbands are in a mental hospital, either under a reception order or as voluntary boarders, will qualify as widows if they have children under the age of 16 years, or in any other case at the discretion of the commissioners. Residential qualification: A widow satisfying the marriage period qualification who has no dependent children qualifies if she and her husband were both resident in New Zealand for not less than three years prior to the death of the husband. A widow who has de pendent children qualifies in respect of children who were born in New Zea land, or were born while she was temporarily absent from New Zealand, or if both she and her husband were resident in New Zealand for not less than the three years immediately preceding the date of the husband's death, or desertion, or admission to a mental hosnital. Orphans' benefitg are payable to •very child under 16—(1) if both its Sarents are dead; (2) if it was born in few Zealand, or its last surviving parent resided in New Zealand for three years prior to his death; (3) so long as it is not being maintain ' in a State institution. The rate of benefit will be fixed by the commission in its discretion up to 15s per week. Any property owned by the child and any special eirc.i ,, " e+ ""/'PS will K tak- t into account when fixing the rate of benefit. Payments of orphans' benefits will be made to the guardian for the benefit of the child.

FAMILY AND INVALID BENEFITS Tile rate. ot benefit tor t|Uai)iit>il family with two children under 16 is Is per week; four children under 16. 8s per week; five children under 16, 12s per week, with increase of 4s a week for each additional child under 16 years. INCOME QUALIFICATIONS The family benefit, together with tli* weekly income of the family, must not exceed £5 a week, added to 4s for each child in excess of two. In the case of a family whose income is i.o 5s per week, where there are five children under 16 the maximum total income within which the benefit is payable will be £5 12s. The amount of benefit in that case will be 7s. RESIDENTIAL QUALIFICATIONS 'Hit; applicant must have resideu, New Zealand for not less than one year immediately, preeedinc the date of application. The benefit applies to children who were born in New Zealand or have been permanently resident for not less than one year immediately preceding the date of application. . Either a father or a mother may apply for the benefit, but the benefit is payable to the mother of the child, whoever makes the application. In special circumstances, however, the benefit may be paid to the father, or any other person, for the benefit of the child. The benefit might be extended for the maintenance or education of the child. RATES FOE INVALIDS Fully-qualified invalids will receive 'the following benefits: — Under 21, if unmarried, £1 per week (allowable additional Income £1). Married man and wife, £2; with one child, £2 10s; two children, £3; three children, £3 10s (allowable additional income £1 10s). Married woman: £1 10s (allowable additional income £2). Other invalids: £1 10s (allowable additional income £1). An invalid is defined as a person who (a) is totally blind; or (b) is permanently incapacitated for work as a result ot an accident or by reason of illness or any congenital defects. An invalid must have resided in New Zealand continuously for not less than 10 years immediately prior to the date of amplication. If he claims on the grounds of blindness, he must show that be was born blind, or became blind in New Zealand, unless he was a resident of New Zealand on September 4. 1936, or has lived in New Zealand continuously for not less than 20 years. If the incapacity is due to some other cause, he must show that he was born with the incapacity in New Zealand or became incapacitated through an accident or illness occurring in New Zealand, or else that he was a resident of New Zealand on September 4, 1936, or has resided not less than 20 years continuously in New Zealand, INVALID WIVES Where domestic or nursing assistance is necessary in the homes, and is paid for, the commission has discretion to make a payment in respect of an invalid wife up to the maximum of £7B a year, so long as the total income of the married couple does not exceed £5 a week in the case of each benefit. A reduction will be made in respect of property owned by the applicant and his wife and family, the same exceptions being allowed as in the case of age benefits.

Special provision is made to subsidise the earnings of blind jversons, and their earnings are not taken into account up to a total of C 143 a year. MINERS' BENEFITS The rates ot benefit for miners who qualify for this benefit are; Unmarried man, £1 10s; married man and wife, £2; with one child, £2 10s; two children, £3; three children, £3 10s. The maximum benefit is £4 10s. Minors' widows, 17s 6d. Miners who have contracted (a) miners' phthisis, and have thereby become permanently and seriously incapacitated, or (b) an occupational disease and are thereby permanently and totally incapacitated for work. will qualify for the miners' benefit. Thev must have been employed in New Zealand as miners for not less than two and a-half years, and have resided in New Zealand for at least five years immediately prior to the date of application. On the death of a person who bad received a miner's benefit, the commission may pay the reasonable expenses of the funeral. PROVISION FOR SICKNESS I'lii l rii !,, s ill iiein'fit t<> fully-qualified persons after the first week are: Under the age of 20, without dependents, 10s a week ; over the age of 20, without dependents, £1 0s 9d; married man and wife, £1 15s; with one child, £2; two children, £2 os; three children, £2 10s. with an additional 5s for each child under 16. The maximum benefit for a man, wife, and nine or more children is £4. ;,"• The above rates will he adjusted according to the other income received during the period of sickness. Every person qualifies if he is temporarily incapacitated through sickness or accident which has caused a loss of his earnings. If the applicant has needed to employ a substitute during his illness, the wages paid to the substitute will be taken into account as a loss of earnings. FRIENDLY SOCIETY MEMBEBS If tiiti sick person also aick benefit from a friendly society he may in addition receive the full benefit from the social security fund so long as his total income during sickness does not exceed £5 a week. Special provision is made for friendly societies to pay the social security sickness benefit to their members on behalf of the Government. If the applicant receives sick pay from any other source the full benefit from the social security fund may also be received so long as his total income during that time is not more than £5, or his actual loss of wages. UNEMPLOYMENT BENEFIT The standard rates of unemployment benefit are: Under the age of 20, with out dependents, 10s per week; over 20 without dependents, £1; married man and wife, £1 15s; with one child. £2; two children, £2 ss; three children £2 10s; with a further 5s for each ad ditional child under 16 years of age The maximum rate of benefit is £4 for a man and his wife and nine or more children. The standard rate of the benefit will be adjusted according to the other income of the applicant. In those cases where the wife is dead and a housekeeper has to be employed to care for the home the allowance of 15s for the wife may be paid for the housekeeper.

QUALIFICATIONS Every person over the age of 16 years, who is unemployed and is capable of work and willing to undertake it, is entitled to an unemployment benefit if he ha? resided iu New Zealand for not less than 12 months. A benefit may be deferred up to a period of six weeks if the applicant has refused work, or has voluntarily become unemployed, or for any other good and sufficient reason. The stand-down period will be fixed according to the special circumstances of each applicant. WAR VETERANS The rate ot benefit for .Maori war veterans is £1 10s per week, and every man who served in the Maori War and received a medal will be entitled to a benefit if otherwise qualified. An applicant must have resided in New Zealand for the 10 years immediately prioi to his application. For South African War veterans every man who served in a New Zealand contingent in the South African War may qualify for a benefit. ' The benefit takes the form of an allowance additional to age benefit of 5s per week so long as his total income is not in excess of £2 10s per week. EMERGENCY BENEFITS Persons who are unable to qualify for any other benefit, and are not able to provide an adequate livelihood for themselves and their dependents by reason of age or physical or mental disability, domestic circumstances, or for any other reason, will qualify for an emergency benefit if the special cir cumstances of a case render such a course desirable. A person may be transferred from the sickness or unemployment benefit to the emergency benefit. Tn general, the rate of bene fit will he of a similar nmount to *h:i' of the analogous benefit under any other part of the Act. In appropriate cases persons receiving the emergency benefit may receive training for an occupation, or treatment that will assist in the improvement of their physical and mental.capacities DUPLICATION OF BENEFITS A general rule is laid down that no person may receive more than one monetary benefit under the Act, but special provision is made in the case of war pensioners who previously have been receiving oldage pensions as well as war disability pensions. In this case they may receive an extra payment up to the amount which they were previously receiving under the two pensions. In the case of persons who are receiving pensions from overseas in respect of their disablement, or the death or disablement of any other person, provision is made that they may receive the benefit in New Zealand, if otherwise qualified, of the difference between the overseas pension and the New Zealand benefit. GENERAL PROVISIONS In special circumstances a benefit for children may be continued after the age of 16 for not more than two years, where such a course will enable the child to continue its education. Benefits are to be payable at inter vals of not more than one month Provision is made for the payment of the benefit to some person other than the beneficiary, if sickness or age. prevents him from obtaining it personally. It is made an offence punishable by a fine of £SO to demand or take a charge over any benefit granted under the Act as a security for. a loan or otherwise. The Minister has advised the Pre*s that provision will be made in another Bill to be introduced this session for economic pensions to war pensioners to be restored to the full rate of 306. with provision for 20s for wives and 10s for dependent children. In regard to war veterans' allowances, the proposed legislation will provide for these to be increased to 25s a week for each veteran, plus 15s for his wife and 5> for each dependent child Power will be given to the War Pensions Board t< increase the allowance in special circumstances to 30s for the veteran, and 20s for his wife. HEALTH SERVICE THE MEDICAL BENEFITS FREE HOSPITAL TREATMENT SELECTION OF DOCTOR The principal clauses of the national health section of the Bill provide for a complete universal general practitioner service. The range of this service is similar to that under the British scheme—that is to say, the services of a general practitioner, other than those involving the application of special skill and experience, are to be available to all. A special section provides for maternity attention and maintenance in a maternity hospital for 14 days, and an extra payment to the doctor for his service and attention on these occasions. Medical, hospital, and related health benefits are medical benefits, pharmaceutical benefits, hospital benefits, and certain supplementary benefits set out in a later paragraph. The administration of all these benefits is under the jurisdiction of the Minister of Health DATE OP COMMENCEMENT The Bill provides that the benefits will commence on April 1, 1939. If. however, arrangements for the effective administration of any of the benefits cannot be completed by that date, then the Minister is empowered to make provision for the inauguration of those benefits at the earliest possible date. RIGHTS OF DOCTORS Every person over the age of 16 years ordinarily resident in New Zealand will be entitled to health benefits, medical benefits, and all the proper and necessary services of the general practitioners are included in the medical benefits Specialist and consultant services are dealt with as a special benefit. Every registered doctor in New Zealand is entitled to provide medical benefits if ho indicates that he is prepared to comply with the terms and conditions set out by the Minister After consulting the Medical Committee any doctor may withdraw from participating in the scheme- by giving three months' notice to the Minister, or shorter notice if the Minister approves. Every person entitled to medical benefits will have the right, from time to time—with the concurrence of the doctor concerned —to select the doctor whom he desires to treat him. Every chemist lawfully carrying on business from time to time will be entitled to supply the required medicine, drugs, materials, and appliances, if he indicates his willingness to comply with the terms and conditions fixed by the Minister in regard to pharmaceutical benefits. In special cases where it is necessary to assure an adequate service the Minister may approve of any other competent person to supply medicines, drugs, materials, and appliances HOSPITAL BENEFITS These benefits cover medical and surgical treatment, nursing care, and maintenance in any public or private hospital, or other similar

institution recognised as a hospital. It also includes special clinical treatment to out-patients at public hospitals All hospital benefits re- ; ceived at any public hospital will be entirely free of charge to the individual, except in those cases where he has recovered damages or compensation for the cost of hospital treatment. » PRIVATE HOSPITAL PATIENTS If the patient desires to be "treated in a private hospital, the Social Security Fund will pay towards the hospital expenses the same amount as is fixed for payment to hospital boards, and the balance of the cost will be charged to the patient. Special power is given to the Minister to make a grant instead of individual payments to meet the case of those hospitals which do not require payment of fees by their patients. i Provision is made that after the i commencement of the health benefits all treatment and maintenance in a public mental hospital will be free of charge. MATERNITY BENEFITS Every woman who requires maternity benefits will be entitled to the following services:— (a) If she is confined in an approved maternity hospital she will receive all the necessary medical and nursing attendance required, and maintenance in the hospital at ther confinement and for a perinod of 14 days after the birth or the child. (b) If she_ is confined in her own home, she will receive the services of a doctor and maternity nurse or midwife at her confinement and for 14 days after the birth of the child. (c) In any case, she is entitled to advice* and treatment by a doctor during the ante-natal and post-natal period. The Minister will arrange so that every approved maternity hospital and every registered maternity nurse and, midwife accepting the terms and conditions provided may participate in the. provision of maternity benefit. Every doctor who desires to do so may participate in the provision of maternity benefit if he accepts the arrangements made by the Minister. STATE SERVICES FREE Where the maternitv benefits are provided in a niaternity hospital carried on by a hospital board or by the Government, tne services shall be free of charge. VVhere the patient receives the benefit in a private maternity hospital, the payment made out of the social security fund will meet part or the whole of the cost, according to the arrangement made by the Minister with the hospital. All the services of doctors, maternity nurses, and midwives in respect of nuternity benefits will be free of charge, except where the patient chooses a specialist to attend her; in which case the social security fund will make the standard payment for the service. SUPPLEMENTARY BENEFITS Supplementary benefits comprise radiological and*laboratory services, the administration of anaesthetics, (services of specialists and consultants/ dental ser rices, ambulance services, home nursing, and domestic assistance, and any other services that may be required for the protection of the health of the community, and will be provided subsequent to the inauguration of the scheme as arrangements are practicable. RESEARCH AND HEALTH EDUCATION Provision is made for the payment out of the social security fund on the appropriation by Parliament of such money as may be required for the pur pose of financing medical research in New Zealand, and the carrying on of a campaign for health education. INTERESTS OF PROFESSION The Minister is authorised to recognise any committee elected to foster the interests of the profession, as an advisory committee for the purposes of the Act where the interests of the profession or calling are concerned. Half the members of the Relative Committee, other than the chairman, are to. be members of that profession or calling. If any person giving hie services or providing any supplies in respect of any health benefit has committed a grave breach of his contract, or if his continued participation in the scheme would be likely to affect prejudicially the efficiency of the scheme, the Minister may refer to a special tribunal the question whether or not that person should.be declared ineligible to participate in the scheme. The tribunal ie to have as its president a judge or a magistrate, and the other members are to be members of the profession to which the person affected belongs. Tf the tribunal considers that the person concerned should not be allowed to continue under the scheme, his contract may be terminated. If the Minister is satisfied that the genera] arrangement provided for in respect of any health benefit would not give an adequate service to the persons in any particular area, he may make special arrangements to provide an efficient service. FINANCE FOR PLAN SOCIAL SECURITY FUND A CONTRIBUTORY BASIS A special account in the Public Account to be called the Social Security Fund will be established, and into it will be paid the proceeds of the social security contributions and all other moneys that may be appropriated by Parliament for the purpose. Out of the Social Security Fund will be paid, without further appropriation, all monetary benefits other than emergency benefits. In addition, the following amounts may be paid out of the fund on the appropriation of Parliament: (a) The cost of administration; (b) any moneys required for educational or research purposes; (c) all moneys that are appropriated for health benefits or any other purpose incidental to the Act. The Employment. Promotion Fund will be abolished on September 30, 1939. and the moneys remaining in the fund on April 1, 1939, may be expended in the meantime for the purposes authorised under the Employment Promotion Act, 1936. POEM OF CONTRIBUTION The social security contribution will consist of (a) a registration fee. (b) a charge on salaries, wages, and other income. The collection of the social security contribution will be administered by the Commissioner of Taxes. Every person of the age of 16 years and upwards who for the time being is ordinarily resident in New Zealand will be required to pay the contribution. The classes of persons to be exempted from the contribution or any part of it will be declared by Order in Council, which must be gazetted The Commissioner of Taxes ie given power to grant special exemption in re spect of specified instalments of a contribution, or any penalty where pay ment would constitute a hardship by reason of the sickness of the person concerned, or a member of his family or bv reason of financial circumstances The registration fee will bo 5s a year, payable yearly, for all women and for all persons under the age of 20, and shall be 5s a quarter in all other cases. The first instalment of the registration fee will be payable on May 1, 1939.

OHAEOB ON WAGES The contribution proposed In connection with the social security scheme will be at the rate of la In the & Instead of the employment charge of 8d In the £. The charge will be levied on salaries, wages, and other Income as at present. Penalties are provided in the case of any employer who deducts the charge from the wages of his employees and fails to account for it. It is also an offence punishable by fine, and, a penal charge for any person to evade payment of any portion of the contribution. The charge on income other than salary or wages will bo payable quarterly, the first payment being due on May 1, 1939. Provision is made that any taxpayer who has made a business loss in one year may deduct that loss from his profits in any of the three following SOCIAL BBOVBITY STAMPS Provision is 'made for the creation of I special social security Btamps, which are to be used for payment of the I charge on wages and salary. In order to assist employers provision is also made for payment in particular cases otherwise than by stamps. Every person of the age of 16 years or upwards, ordinarily resident in New Zealand, is required to be registered for the purpose of the Social Security Act not later than one month after the commencement of the Act—that is, not later than May 1, 1939. In effecting registration he is required to supply such particulars as may be required by regulation, and registration may be effected at any Post Office or other place provided for the purpose, Any person who employs in his service lor more than seven days any person who has failed to register, or is in arrear with payment of registration fee, will be liable to a fine. Provision U made that an application for a benefit may be postponed or declined in any case where the full amount of the social security contribution has not been paid. Authority is given in the Act for the making of any regulations that may be necessary to enable the efficient administration of the benefits provided.