FRIENDLY SOCIETIES AND NATIONAL PROVIDENT FUND.

Colonist, Volume LVII, Issue 14129, 4 July 1916, Page 4

FRIENDLY SOCIETIES AND NATIONAL PROVIDENT FUND.

PROVISIONS IN FINANCE BILL.

In a commutation regarding thoFinance Bill, Sir Joseph Ward Minister of Finance, says.-—■ The proposals under Part IX. of the Bill represent a very important step State and the friendly societies, iand a™ designed io strengthen the efforts of Jboth the friendly societies and +£" in the Bill is drawn up to give effect to the conclusions which were relched at the conteroac© held in Arail last between representatives of the'societies and the Government. The benefits will be administered by the societies through the National Provident Fund .Board, and (are as follows : ■ (1) The payment of £4 in respect of all members on the birth of a child U) An annuity allowance of 10s at; the age of 60 for friendly societiesmembers at half tbo rates in the original Act. &

An increased pension of 20s, 30s, andT •±os may also be obtained at reduced' rates, as set out in the schedule to tho alii.

These benefit,-, apply to present aswell as future members. _ The maternity pa/ymen!; will be subject, generally speaking, to the conditions that apply to contributors in tho National Provuioat Fund. Members. wjII require to ho twelve mouths in their society before becoming entitled to the benefit, and their income -muse not exceed £200 per annum for the year, preceding the J>irth. The maternity payment is to be r&4 garded a? the bene&t. of the motherland shall be payable only to her or to* her husband if she authorises him to receive it. -

The annuity benefit is optional on the part of members, and may be taken up by all present or future members oh payment of the concribution which is •set out in the schedule attached to the Bill. The contributions for this purpose cease at the age of 60, and at that age the society would transfer to "the National Provident Fund from its sick ftmd on behalf of that member a sum that will be actually fixed by regulations under the Act. From the age of 60 onwards a member will thus receive a permanent allowance of ]0s per week and the society will bo released from future liability for sickness benefit on account of that member.

The 10s benefit for life from the age of 60 is a greater benefit than the present payment ox> sickness only, so that' the members rr-oeivo an advantage through this scheme and the society is likewise released from one of the principal difficulties experienced in friendly societies—thf -payment of old-ago sickness.

The- provisions jr. the case of the death of a mraW are also of interest to friendly .societies. The refund of the contribution by the National Provident; Fund will moan an addition to the funeral benefit payafcle in respect o£ the member to !u« family and the refund of the amount transferred by the society at the age of 60 is also a valuable addition t© ihv, funerial insurance of members in favour" of their families^ The system of neramnts as between the .National Provislwit Fund Board and the societies will b-e set out by regulations, which will also provide for the administrative details "in full. The wheme will cotno into operation as from Jtanuary Ist, 1917.