PENSIONS — SUPERANNUATION

Auckland Star, Volume LXXIII, Issue 168, 18 July 1942, Page 4

PENSIONS — SUPERANNUATION

As the cost of living has risen, the Government has increased the old age pension and reduced the superanuated servant by increasing his wage tax. A civil servant retired medically unfit after 34 years' service and had paid close on £400 into the fund for his old age. When wage tax is deducted from his pension he receives just undef £3 per week. The old age couple receive £3 odd per week, can make an extra pound if they so wish, have paid nothing practically for their pension, and vet the civil servant has wage tax deducted from his pension! In my opinion no deduction should be made from any pension under £5 per week. In reply to a letter sent to the Commissioner of Taxes on the question referred to in the first instance, the following reply was received: "With reference to your letter, I have to advise you that the amount of the superannuation which you now derive is income- within the meaning of the taxation legislation, and consequently the whole amount derived is subject to tax. The legislation does not authorise me to deem proportions not to be 'income' because contributions were made before the charge on salaries was first imposed." To take wage tax on a pension covering a period of 34 years seems, to say the least of it, *most unjust, see ing that we cannot apply for the old age pension, we pav for our own pension and receive less than those who have paid nothing directly. UNJUST.