PENSION BENEFITS

Wanganui Chronicle, Volume 80, Issue 87, 13 April 1938, Page 7

PENSION BENEFITS

1 BASIS OF CONTRIBUTIONS l ; INSURANCE OFFICERS’ SUGGESTIONS [ Per Pres* Anociation.] WELLINGTON, April 12. “The Life Officers’ Association would ' prefer to see the New Zealand Government adopt a flat rate of contribution as in England and if the present basis of contribution, namely, 5 per cent, of income, is adhered to, then we suggest that a salary limit of £350 a year be incorporated in the scheme,” said Mr. W. S. Mankey, giving evidence on behalf of the association this afternooi before the Select Committee on National Health and Superannuation. This would mean that everyone would contribute 5 per cent, but the pension benefits of the scheme would be available only to those incomes which were less than £350, thus meeting the injustice that might be done to public servants and many others covered by the existing superannuation schemes. Moreover, the scheme, in its present form, would penalise many holders of the 700,000 life assurance policies issued throughout New Zealand. As an alternative the association suggests that the proceeds ot a life assurance policy or pension payable under a similar scheme where the cash equivalent does not exceed £2OOO at the date of applying the “means 1 test” be excluded from that test. The association said that sickness and disablement benefits were administered in England by "approved, societies” and suggested that assurance companies should be used for this purpose in New Zealand.