STATE SCHEME FOR SUPERANNUATION

Hawke's Bay Herald-Tribune, Issue 39, 2 March 1937, Page 8

STATE SCHEME FOR SUPERANNUATION

1 Ansociii'«»#i

No Smashing of Existing Institutions

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CHRISTCHURCH. Last Night. Although details of the Government superannuation scheme have not yet been worked out, the Prime Minister, the Rt. Hon.- M. J. Savage, made it clear in an interview to-dhy that there was no intention of smashing existing superannuation institutions. "Our joh," he said "is to make superannuation universal and to see that every person in New Zealand is covered. Those who are contributing funds will" have the option of coming into the State scheme voluntarily if they wish to do so, but there will be no compulsion in their case.. "We ean't put a steam-roller over what is already in existence. We have got to dovetail the superannuation scheme of the future with what is existing to-day, always leaving the rigbt of organisations now in existence to go on as they are going or to come into the new system." Mr Savage said that to that extent the State superannuation scheme would not be compulsory. Howere, the Government intended to see that superannuation was mado universal and it was for those in private funds to dccide whether- it would pay them better to come into the State scheme or remain as they were. "It is difficult to utter the last word on the question at present, ' ' he added, 1 1 but we will be careful to see that we do not smash organisations that are now in existence. There is no question of confiscation of . existing funds." The Prime Minister was questipned regarding the probable amount of payments under the State scheme, but he said that had not been worked out. A coimnittee was working on the scheme at present and wais collecting information. He expected legislation to be ready when Parliament assembled in August, but in any case it would be passed next session even if it meant silting af'ter . the Christmas holidays. Questioned regarding the position of friendly societies under the national health scheme, Mr Savage said they would bear the same relation ' to the Health scheme as the existing superannuation funds bore to the superannuation scheme. "We have got to see tiiat the ma chinery of the Lodges will be utilised and no.t smashed," he said. "It doesn't matter what we take up; whero there is any sort of service existing the best method of facing it is to take it with you." The Prime Minister" mentioned that the same position arose in connection with internal marketing. The Govprnment had bought out one vfirm and its policy now was to get in touch with existing merchants in the trade to ensure co-ordination. s