NATIONAL PROVIDENCE.

Manawatu Herald, Volume XXXIII, Issue 960, 28 February 1911, Page 3

NATIONAL PROVIDENCE.

The National Provident F'und Act, 1910, offers facilities for voluntary thrift on a basis oi mutual contributions by the State and the individual exceeding the provisions of any other known Slate system, in the liberality of its benefits and the extremely low contribution rate. No other system so unrestrictedly increases the allowances in proportion as a contributor’s family responsibilities increase, and this without additional payments —a feature of the scheme that will appeal to any man who gives a thought to the future maintenance of those dependent on him. The combination of pension allowances with special family benefits is unique. The system is most advantageous and beneficial to the young and to the small-wage earner. INSURANCE OK YOUNG PEOPLE against a time of stress not only educates them in the primary and important duty of self-help, but the fact of regularly contributing for their future welfare inculcates habits of system and method in the business of life. Insurance in this Fund brings before them in a most striking manner the potency of trifling sums of money laid aside at stated intervals. The attraction to the small-wage earner is that he becomes entitled to the maternity expenses, the incapacity pay, and the widow’s and children’s allowances of the same value and extent as the contributor of equal age who is paying at a higher pension rate—a provision that stands out as one of the most prominent advantages of the Act. This measure extends to all qualified persons the benefits of superannuation, offering as it does to the employees of municipal and local bodies, of private firms, and of the household every inducement to co-operate with the State in a sound and guaranteed fund. The qualifications for a person desiring to join the Fund are residence in New Zealand, age between 16 and 45 years, and income not in excess of ,£2OO a year. No medical examination is required on joining the Fund. BENEFITS. The following benefits are payable ; (1) A payment of not exceeding £6 for medical attendance on the birth of a contributor’s child or children after contributing for twelve months. (2) An allowance, after three mouths’ incapacity to work, of 7s 6d per week for each child of a contributor under 14 years of age ; due after contributing for five years. (3) A pension at age 60 of 10s, 20s, 30s, or 40s, according to the scale of contributions. (4) An allowance, on the death of a contributor, of 7s 6d per week for each child until 14 years of age, and 7s 6d for the widow so long as any child is under 14 years of age ; due alter contributing for five years. CONTRIBUTIONS, HOW PAYABLE. The contributions are payable at any postal money-order office by weekly contributions, and may be paid in advance up to any sum. Persons residing at places where there is no receiving office may arrange to become contributors and remit contributions direct to the Superintendent of the Fund, Wellington. It is important to remember that the contribution rate is lowest for those who join young, and remains low throughout life- The rate is increased by those who join at the higher ages. An important concession is the return of all contributions (less any benefits received) in the event of the contributor leaving or dying. A young man of 22 years of age pays a shilling a week for a pension at the lowest scale —viz., los per week at age 60. If he mairies, then for every birth happening after he has been contributing for twelve mouths, he is entitled to a payment not exceeding £6. From age 27, or five years after entering the scheme, he would be entitled, should he become incapacitated for more than three months, to an allowance (provided be suffers pecuniary v ~i,u extent) of 7s 6d per week lor each child under 14 years of age during the subsequent period of his invalidity—that is, supposing he has four children, he would receive £1 10s per week. In the event of his death his widow will receive 7s 6d her week so long as any child is under 14 years of age, and a similar sum for each child up to 14 years of age; a total to his widow and children of £1 17s 6d per week. Then again, il at age 27 he finds himself in a position to do so, he may increase his pension .to 20s, 30s, or 40s, per week by commencing to pay the increased contribution for that age. If he be a contributor who has started on the higher pension scale he may leduce it to a lower scale, but still retain the lull rights to the other three benefits—viz., the maternity and incapacity allowances, and the payments to widow and children at death ; and, further, he can receive back any excess contributions he may have paid at the higher rate. Let us suppose, however, that this contributor reaches the age of 32 without having married, and desires to withdraw, he would then be entitled, after giving twelve mouth's notice, to receive back the whole of his weekly shilling contributions, which by that time have amounted to ,£26. The Fund has therefore acted as a savings bank for him, and he has received ten years’ free insurance. On reaching age 60 the contributor referred to w r ould have the

option of receiving a lump sum of 16s, or of drawing an allowance of ios rer week ior the rest of his life.