A COLONIAL ANNUITY SCHEME.

Taranaki Daily News, Volume XLVII, Issue 8082, 11 April 1906, Page 2

A COLONIAL ANNUITY SCHEME.

Some months ago the Premier, referring to bis idea of a colonial annuity scheme, stated that if it received the support of the people he would regard it as the crowning event of his public life. The Wellington " Post'' now understands that Mr tfeddoii in tends to try and give effect to this important proposal, and that it will, when more thoroughly matured, be explained to the people of the colony, and bo subsequently introduced into Parliament. It is not intended that it shall interfere with the Old Age Pensions Act, but in course of rime it will probably take its place. The details have not yet been work ed out, but Mr Seddon's proposal is understood to be that any person may put a sum, say, £5, into a Government fund to earn interest and compound interest, and be subsidised by the Treasury. The Premier contends that it would pay the colony to do this, for the colony would have the use of the money, it would save the cost of charitable aid, and, as years went on there would be fewer and fewer people to go on the old age pension fund. " The scheme will," ■says Mr Seddon, " encourage thrift, and I hope the people will give it their support, and thus enable New

Zealand again to give a lead to the world. This scheme is a good deal like the English Parliamentary scheme, commonly known as Mr Chamberlain's scheme. Under this proposal there are three methods by which an annuity of 5s at 65 may be secured (a) by a cash deposit of £2 10s at 25, and an annual payment of 10s a year up to 65. The State is to credit the depositor with an additional £lO at the date of his deposit,, Interest would be allowed upon the total credit at 2| per cent, This would work out at a pension of 5s a

week at 65 ; (b) the same, except that the cash deposit would be £5, and the annual payment jEI. In this case the State credit would be ils. This would admit of other benefits besides the 5s a week at G5, the chief being a provision for widows and children ; (<;) the deposit of 80s by a man, or 25s by a woman, in the Post Office, and also insurance in any society for an annuity of £6 10s for a man, or £'i IBs foi a woman. In this case the State would double the annuity. • Mr Heddon's scheme will probably be found to bo most like the first of these three methods, the annuity, of course, being higher—proably double, namely, 10s a week. As already stated, the intention is that the new scheme shall run concurrently with the old age pensions for some years, but the Premier's eoi.t'iitionis that, to make a contributing scheme a success, you must start when people are young, allowing the existing arrangement to go on until such time as the other will supersede it.