National Provident Benefits Extended

Sun (Auckland), Volume I, Issue 216, 1 December 1927, Page 13

National Provident Benefits Extended

EMPLOYERS’ CONTRIBUTIONS tax on certain pensions (THE SUN’S Parliamentary Reporter.) WELLINGTON, Wednesday. Important extensions of the provisions of the National Provident Fund are made in the Finance Bill introduced in the House of Representatives this evening by the Hon W Downie Stewart. It is proposed that, without limit as to the age of a proposed beneficiary under the scheme, and notwithstanding that he may be in receipt of an income of over £3OO, an employer may make contributions to the fund so as to secure to a beneficiary at the age of 60 years a weekly pension of from 10s to 80s. The rates at which contributions are to be made to the fund are to be fixed by the National Provident Fund Board, and may be varied. If employment ceases the beneficiary is to be allowed to continue the contributions on his own behalf.

The Bill provides that when an employer goes out of business and the beneficiaries do not elect to continue the contributions the amount already paid shall remain in the fund. If this amount is sufficient the beneficiary shall receive all the benefits of the fund including the pension subscribed for at the age of 60 years. If the amount is not sufficient to secure a pension of at least 10s, the money is to be held and paid to him at 60 years, or at such earlier date as the board may decide. In the event of earlier death the amount is to be paid to the next-of-kin. Payment of contributions by both employer and employee beneficiary will not be permissible. The Bill further provides that the Government subsidy shall not be payable in respect of contributions on behalf of persons who were over 50 years of age when the first contribution was payable, when it is desired to increase the contribution for persons over 50 years of age in order to secure an increased pension, and on contributions over and above the amount required to secure a pension of 40s a week. Income tax is to be payable on the amounts of pensions in excess of 40s a week.