NATIONAL ANNUITIES SCHEME.

Gisborne Times, Volume XXIII, Issue 1866, 21 September 1906, Page 3

NATIONAL ANNUITIES SCHEME.

BILL INTRODUCED BY THE

PREMIER,

PROVISIONS OF THE MEASURE,

(Special to TimesJ Wellington, last night. Tho National Annuities Bill, wbioh was foreshadowed by she late Mr Soddou a few w, oks before his death, was brought dosvn by Governor's message and introduced by Sir Joseph Ward to-day. Tho Bill provides for a echemo of national annuities in oonnootion with tho bufiuess of tho Government Life lusuranoo Department, and it is provided that on Deoember 81st next all existing contracts on tho books of tbe Department in regard to immediate and diferred annuities and endowments and investments shall be transferred to the National Annuities ! bra>-ch.

The Colonial Treasurer is empowered to pay out of the Consolidated Fund the' estimated amount of subsidies to annuities according to tbe soale fixed by the Bill. If the balsDce in the national annuities account is at any time insufficient to meet the oharges thereon the Cootro ler and Auditor General shall issue the amount of such deficiency out of the Consolidated Fund by way of loan, and suohmmey with interest thereon at five per cent, shall be repaid 11 as soon as practicable. " A balance-sheet and statement of accounts shall bo laid beforo Parliament annually. The annuities branch shall bo subject to a triennial investigation, after which the triennial allocation of subsidies shall be made. A “ National Annuities Aot” shall be kept, into whioh moneys received out of tho account of the annuities shall bo paid, and from wbioh all payments in respeot of annuities and all payments for investments shall be taken. The usutl machinery olauses are also included in the Bill, and provision is also made for the issue of regulations as oooasion may require. FRIENDLY SOCIETIES ANNUITIES.

Ia regard to friendly societies it is pro vided that all weekly allowances mads to members under the age of 65 on account of sickness or other infiimity (where the iuospioitated macaber receives allowances continuous for 12 mouths or upwards) shall be subscribed es follows: —(a) Where the incapacitated member’s age is between 55 and 65 years a subsidy equal to 50 per oent, of the total allowaoca paid during the precediog year ; (b) Where bis age is between 45 and 55 years a subsidy of 60 p9r oent. ; (e) Where his age is between 35 and 45 years a subsidy of 70 per cent ; (d) Where his age is between 25 and 35 years a subsidy of 80 per oent.; and ( ) Where bis age is under 25 years a subsidy of 90 per cent. DEPOSITS AND ANNUITIES.

In regard to other persons the schedule attaohad to the Bill contains long and elaborate tables which set out the miaimum soale of deferred annuities (to be increased by tho subsidies), fo: (Table 1) single premium deposits of £1; for (Table 2) yearly premiums of the same amouot. and for (Table 8) yearly premiums (calculated on the basis of sge), whioh may be paid for securing an assurance of £IOO in the event of death taking place before the attainment of deferred age, that is, the age at which the payment of the annuities is to commence.

SURRENDER OF POLICIES,

Id the effect a policy taken out in accordance with Table 1 or Table 2 being surrendered after it has been two years in foroe, 50 per cent of the deprsits will be returned ; ufler three years 75 per cent of the deposits, and after five years all the deposits (without subsidies) will bereturnod wish compound interest at the rate of 2j per oent per annum. Ia the eveDt of a policy taken out in accordance with Table 3 being surrendered after having been two years in foroe the surrender value will be returned, or, at the option of the arsurod, a paid-up policy w ill be issued in cxchnuge.

MINIMUM AND MAXIMUM ANNUITIES.

The minimum annuity that will be granted after tho 11 deferred age ” ie £l3 a year, and when tho subsidised deposits at tho “deferred age” do not amount to sufficient to purchase an annuity of £l3, the subsidised accumulation wi.l be re turned with compound intsreat no higher than pet cent r r lower than 2j? per cent. The subsidy will be bastd upon the premium payable ; £156 per annum is the maximum annuity for whioh the premiums will be subsidised, so that when the subsidised annuities reach tho maximum of £l5O per annum any premium paid to puiobaso additional amounts of nennity will tot bo subsidised. Tho full subsidy will be given if the ago at the time of slatting deposits is not loss than 15 years of the defined a>e; otherwise the minimum subsidy of 10 per cent, only will be giver. Ia the event of death at any time before the defeired age all deposits (with subsidies) will be returned with o impound interest at tho rats of 8 per omt. per annum. If death occurs during ths first five years after the deferred age the balance of five years tniuity will be paid to tho representative of the annuitant, If death occurs after the first five years a proportionate payment of the annuity will be rnSdo to the date of death. SCALE OF SUBSIDIES.

The eubsidioa on deposits is arranged on a solo that is intended to cccourrgo marrioo, urcl to give the greatest measure of assistance to- those possessed of _ large f,miller. Unmarried persons’deposits areto reorive a subsidy of 10 per cent. Married persons with no childroa will receive 12| per cent., whilst in the ciso of depositors wish families tho subsidies will range from 15 pet cent in tho case of one child to 25 per oent for

five children, and to 05 per oent for over 12 ohiidren. Tho following subsidies will be granted in addition to the foregoing scale: (1) “Earnings” under £156 por annum, 5 par cent extra subsidy; (2) “earnings” of £156 per annum and np

ward?, but under £260 per annum, 2£ per oent; (3) widow, or widower, 21 ; (4) member of friendly society- (5) for “ per sstenoy in depositing," 2£ per coot. “Earnings" aro to bo taken as tho average earnings during one year of the trienaium, “ Persistency in depositing ” moans the continuance for three ycr.r3 of deposits averaging not less :hen 212 s per annum daring each of tho lhre6 years. Liter. —Tho subsidies to members o! Friendly Sccieties provided above refer? to aged member?, that is thoeo who have attained tho age of 65 yeaie, and the subsidy shall be pnyablo in respect of weekly allowances made during the preceding year on account of sickness and infiimity. Fur Friendly Society members under that age the ralos ure as previously given. Tho deferred ages at which the annuities are io commoner- at the option of tho depositor may be 60, 65, or 70, «hs ceninouliens being arranged on a sliding sene for these ages.