POSSIBLE LEVY

Poverty Bay Herald, Volume LXIII, Issue 19126, 22 September 1936, Page 6

POSSIBLE LEVY

SHILLING IN THE POUND SUPERANNUATION SCHEME MAY OPERATE NEXT YEAR OVER £14,000,000 COST ( Parliamentary Reporter.) WELLINGTON, this day. The inauguration of a national superannuation scheme, which is one of the biggest tasks of Ihe Government ’s programme during the life of the present' ’Parliament is under consideration by a sub-committee of the Cabinet consisting of the 'Minister of Pensions, the Hon. \\. L. Parry, the Minister of Finance, the Hon. W. Nash, the Minister of Health, the lion. P. Fraser, the Minister in Charge of War Pensions, the lion. F. Jones, and the Minister in Charge of Friendly Societies and. the National Provident Fund, the Hon. W. Lee Martin. The scheme at present is only in the preliminary stages. The sub-eorit-mit tee has not completed its order of reference, but a further meeting will he held this week for that purpose. ALL TO CONTRIBUTE It is intended that the scheme shall be universal in operation. That is, that every member of the community shall contribute to it by means of a superannuation tax, probably on the basis of Ls in the f on income, and that every contributor shall he entitled 'to benefits on attaining the superannuation age. it is proposed that legislation providing for the inauguration of tho scheme will be passed next year, the scheme to «omo into operation immediately. ’The superannuation age has not yet been determined, but it is expected it will he (it) years, and the annual cost is likely to lie in excess of £14,000,000, of which the superannuation tax will probably yield about, half, the State contributing the other half. With the introduction of the scheme, the existing old-age pensions will be abolished. The present cost, of the old-age pensions and certain other pensions will form a substantial proportion of the State’s subsidy to the national superannuation scheme.