SUPERANNUATION AND EQUITY.

Wairarapa Times-Age, 2 May 1938, Page 6

SUPERANNUATION AND EQUITY.

only at that part of the Government’s social security proposals which relates to superannuation, some very complex issues are raised by the demands for exemption that are being 1 made by sections and groups which have existing schemes of their own. There is an obvious hardship in compelling people to contribute to two superannuation schemes when they will be allowed to benefit only under one, but account has to be taken of the possibility, amongst others, that some contributors to existing superannuation schemes may drop out and become eligible ultimately under the proposed State scheme. That apart, has a ’ contributor to an existing superannuation scheme any better claim to' exemption from contribution to the State scheme than a citizen who is prepared individually to make provision for his or her old age and has reasonable prospects of doing so? The total position seems to be that injustice and hardship will be inflicted at least on all people of moderate means who are compelled to contribute to the State scheme, and at the same time are excluded from benefit. There is a difficulty in all cases in determining who will and who will not ultimately be eligible to benefit, under the State scheme, but the only really just and equitable procedure evidently would be to admit all contributors to superannuation benefits irrespective of a means test. A refusal to accept and work upon this basis must have two principal consequences. One is that serious injustice will be done to many of those who are to be forced to contribute to the proposed State superannuation fund, and that, this injustice will fall most heavily on those who are barely able, by industry and thrift, to save enough, whether individually or as members of other superannuation schemes, to exclude themselves from benefit under the State scheme. The other inevitable consequence is that of placing a penalty on tJirift and a premium on thriftlessness. Many people who might have provided lor lheir own old age will be robbed o! all incentive to do so —a condition of affairs that must be expected to read in a number of ways to the disadvantage ot the whole community.