SOCIAL SECURITY

Otago Daily Times, Issue 23686, 19 December 1938, Page 10

SOCIAL SECURITY

BENEFITS OF ACT OUTLINED "WITHOUT PARALLEL IN WORLD" UNIVERSAL SUPERANNUATION (Feb United Prkss association) WELLINGTON, Dec. 17. Interviewed to-day. the Minister of Social Security (Mr W. Nash) stated that, on the occasion of his taking up his new portfolio, it was fitting that he should again set out the benefits of the Social Security Act. "The inclusion of the emergency benefit ensures that no case of need that just fails to qualify for a specific benefit will be left without redress. The health benefits under the Minister of Health will enable the whole population to receive medical services, supplies of medicines, hospital treatment, maternity treatment, and supplementary services." He had been concerned to find how much misunderstanding still existed concerning the effect of the Act on contributors to the superannuation funds. The most common mistake was the belief that social security provided superannuation and nothing else, and that contributors to superannuation funds therefore paid to two funds, and could benefit from only one of them. "This is utterly wrong, but it aeems necessary to set Out the true position a&un. The average family in New Zealand is> probably living on an income of £5 a week, on which the social security contribution will be 5s a week. Employment tax is already claiming 3s 4d, so the increase is only Is Bd, and for that the family is covered for benefits without parallel anywhere in the world. Both parents and every child have a free family doctor, free hospital, and free medicines all their lives. The birth of a child brings a maternity benefit worth the whole of the increase in the contribution for more than three years. "The insurance cover guarantees to that family a continuing income in spite of inability to work through temporary sickness, permanent invalidism, or unemployment. It provides a means of livelihood for a widow and her children, and for orphans in the event of the premature death of the breadwinner. "In addition there is the age benefit, which guarantees a minimum income of 30s for every individual, and £3 to every married couple at the age of 60; and universal superannuation, which every man or woman now aged 37 or younger will draw in full, irrespective of the amount of any other income, or the value of property. " In regard to the civil service and other annuitants coming within the scope of the Act in the case of those married couples whose retiring allowance and other income is under £4 a week, they will receive such part of the maximum age benefit as is necessary to bring the total income up to £4. Any person who was previously receiving the age benefit may, on reaching 65 or more, relinquish the age benefit and take universal superannuation, or continue the age benefit and not claim universal superannuation, according to which benefit has the greater value. *' Universal superannuation is payable without any conditions, and therefore every married man on £5 a week or less will receive all his contributions back in universal superannuation alone. The explanation lies in the fact that those on high incomes will contribute more than they will receive, and they can afford to. That enables those with lower incomes to receive more than they pay. u l think," said Mr Nash, " I should make it clear that every person on an average income who contributes both to a superannuation scheme and to social security, will receive much more than full value for his contributions. If he considers again what hospital, doctors and maternity expenses, unemployment, and sickness have cost him in the last few years before 1935, he might even find that he will be better off after oaying his contribution, quite apart from the security it gives for his family, and the provision for later years."