CUTS IN PENSIONS

Waipa Post, Volume 44, Issue 3183, 28 May 1932, Page 5

CUTS IN PENSIONS

REFUNDS ALLOWED. In accordance with the promise made by the Pi’inxe Minister at the end of the emergency session, old age pensioners who were subjected to excessive i-eductions last month, owing to an interpretation of the National Expenditure Adjustment Act. which was not in accordance with the Government’s intentions, received a refund on this month’s payments. At the time pensions were paid last month the Act had not been passed by Parliament, but as it was made retrospective the Pensions Department deducted 10 per cent of the total pensions payable. As a result many pensioners suffered cuts which were greater than 10 per cent of the amount they were actually receiving. An amendment was subsequently made to the Bill before it became law. providing that the reduction should apply only to the amount actually received, and that it should not be based on the full amount that was payable.

According to the Act, however, a pension may be reduced again a: the next renewal, when the reduction in the exemption for income' from £52 to £-39 a year will also operate. In some instances, if the Act is interpreted in this way. some pensioners will subsequently not be entitled to anything at all.