THE Wairarapa Age MORNING DAILY. SATURDAY, JUNE 20, 1908. A SPLENDID SYSTEM.

Wairarapa Age, Volume XXXI, Issue 9120, 20 June 1908, Page 4

THE Wairarapa Age MORNING DAILY. SATURDAY, JUNE 20, 1908. A SPLENDID SYSTEM.

During the discussion on the Old Age Pension Bill now before the British Parliament, frequent mention has been made of the system of old age pensions obtaining in Germany. Up to the present time the workhouse is the only provision made by Britain for the relief of the aged poor. This is anything but satisfactory, and working, men, during their ability to labour, should make provision for sickness and old age by joining some Friendly Benefit Society, and thus assure themselves against becoming in-

males of the home. Whilst in New Zealand we have boldly faced the position and provided for the support of the aged poor out of rates, it is certainly not the best system, as there is no encouragement to thrift. The German Government, in 1889 passed a Bill intituled the "Imperial Law of Insurance" of working men and women against permanent ill—health and old age. This edict came into force in 1901, and to-day it is recognised that this important question of the support in old or permanent illrhealth of the working classes is completely and successfully solved in Germany. It is estimated that there are twelve millions of workers in Germany, and the individuals who benefit by this insurance scheme have taken part in founding its financial basis. Of each premium, one-half comes out of the pockets of the workers, the remainder being contributed by their employers. The cost :>f administration is practically nil, as the whole of tlie business is done through the Imperial Post Office. The system is compulsory, the whole working population—manservants, maid-servants, and factory workers are bound by law'to insure after completing their sixteenth year. Clerks and tradesmen are eligible to insure provided their in come does not exceed £IOO a year. These latter, however, are self-in-surers, no employers being forced to contribute to this class of insurance. Amongst the workers there are four classes of insurers. The first class consists of those who earn £lB a year and under; the second class £2B a year and under to the £lB j limit; the third-class £42, and the fourth class over £42 and under £IOO. The premiums are paid weekly in equal proportions by workers and employers. For the first class the weekly premium amounts to a sum equal to three farthings of f our monsy; the second class being one penny; ths thirl clat-s one pinny furthii-g, and the fourth class three halfpence. It is the duty of the employer to see that his own and his premiums are paid regularly each week.. It is paid cheerfully, and is regarded as a beneficent tax. The casual workers pay weekly, and the employer who first engages them in the week pays his share. The weekly premium is paid into the Post Office, and a stamp or stamps is given in exchange fjr the money. The stamp is duly pasted on a card, which is the property of the person who insures. The card, when full, is exchanged for another, with the value of the previous one endorsed on it. In two years after this scheme of insurance was started in Germany it is stated that over five million pounds sterling were collected. In twenty years the amount of the accumulated fund, it is estimated, will amount to twentyfive millions, and this latter sum, it is calculated, will double itself in eighty years. As to the practical benefits of the scheme, an insured person, if thrown out of employment from accident or sickness, can draw a sick pension. If he or sha lives to the age of seventy years, an old age pension is paid. Sick pension can be claime.l, where less than one-third of the yearly wage has been earned and ceases when the person is able to earn the full wage. The pension is not large, the idea of the Government being ihat by aid of this money, board and lodging may be obtained in a family to whose resources the amojnt of the pensicn would be a welcome addition. A man or woman may draw sick pensions after having paid the premiums for five years. The pensions are—First class, £5 14s a year; second class, £6 5i a year; third class, £6 lis a year; and the fouith, £7, and the pensions increase proportionately with tJe length of the insurance. Any person who has passed his or her seventieth year and has paid premiums for thirty years is?, irrespective of sickness, enthlod to an old age pension, the four classes being respectively—£s £6 15s, £3 3s, and £9 lis. Should a servant girl or female worker marry she mly keep up the insurance by paying the whole premium herself. If on marriage payments are discontinued they receive the sum which st.inds to their credit through previous payments. If a man dies without having benefited by the insurance, the widow, or children if under fifteen, inherit the sum which is standing t.i his credit. In similar circumstances if a woman dies the fatherless children henefit in the same way. The main feature of the German scheme is that it is worked on business lines and not as charity, and there is no idea of pauperism in the details.