SUPERANNUATION

Wairarapa Times-Age, 3 May 1938, Page 6

SUPERANNUATION

SUGGESTION BY FARMERS’ UNION ALTERNATIVE TO PRESENT PROPOSALS. UNIVERSAL BENEFITS. (By Telegraph—Press Association). WELLINGTON, This Day. In the course of his extended statement today to the Parliamentary Committee on National Health and Superannuation, the Dominion President of the Farmers’ Union (Mr W. W. Mulholland) not only criticised the Government’s proposals as being financially unsound, but, on behalf of his organisation, suggested an alternative scheme. “There has not been time,” Mr Mulholland observed, “to make a proper investigation, but figures which have been made available to us suggest that a pension of 30s a week available universally to all persons over the age of 63 years could be financed on the basis of a personal contribution (in lieu of the £1 registration fee) of 2s a week, and a levy of 3d in the £ on all personal income. In support of this contention we would quote the terms of the National Provident Fund which provides a pension of 30s per week at the age of 60 for a weekly contribution of 3s from the age of 20 —the age at which contributions to the National Superannuation scheme are presumed to start. In addition to that the National Provident Fund provides for this premium of 3s per week, the following additional benefits:— (a) Children of a deceased or incapacitated contributor (under 14), _7s 6d per week; (b) Widow of deceased contributor while under child is under 14, 7s 6d per week. “We recommend that the present pension system should, continue in force until it can be gradually eliminated by the operation of the superannuation fund. That those who are now of an age which will not allow of their contributions being sufficient to enable those benefits to be paid when they reach the age at which they will be’ entitled to receive them should receive a sufficient old age pension if entitled to the same. The amount paid from the fund should be such as is actuarially determined on the basis of the length of their contributions. “There should be no income or other limit to those entitled to benefits from the superannuation fund—they having paid for them are unconditionally entitled to receive them.”

Concluding his statement Mr Mulholland said: “We would emphasise that-in our opinion to proceed with the scheme along the lines of the present proposals is imprudent financially. The prospect of a possible £15,000,000 increase in general taxation at some future time is a possibility which cannot be viewed other than with the gravest misgivings.”