INCOME LIMITS

Wairarapa Times-Age, 27 June 1938, Page 8

INCOME LIMITS

UNDER SOCIAL SECURITY PROPOSALS BENEFIT FOR CONTRIBUTORS TO EXISTING SCHEMES STATEMENT BY PREMIER (By Telegraph—Press Association.) WELLINGTON. This Day. “There will be no delay in bringing before Parliament this session the Bill giving effect to the Government’s social security proposals.” said the Prime Minister, the Rt Hon M. J. Savage, in an interview on Saturday. Extensions of the original scheme which had become desirable in the light of evidence brought before the special Parliamentary Committee were being finally shaped, the Prime Minister added, and excellent progress was being made with the drafting of the actual legislation. “I do not think it wise to discuss details too much until the Bill itself appears,” Mr Savage said, “but I can definitely say that we are taking steps to improve the position as far as civil servants and contributors to private superannuation schemes are concerned. As a result, the scope of the Government’s proposals will be even wider than when they were originally announced. “The first proposal was to pay to a man and his wife at the age of 60 years 30s a week each and to make no deductions on account of a joint additional income of £1 a week. This’ would have allowed a total income for a Superannuated married couple of £2OB a year. “The necessity for widening the scope has arisen because of the fact that under the original scheme lower paid contributors to existing superannuation schemes would have been required to pay the social security contribution but, owing to income limitations, would not have received full benefits. Accordingly we have decided to increase the allowable income on a sliding scale so that in cases such as I have mentioned there will be an annual income, including State superananuation of £312.

Mr Savage said full details of the rates of payment to superannuitants would be included in the Bill to come before Parliament, and he himself was satisfied that the new proposals were an appreciable step nearer to the ultimate goal of universal superannuation. There would be a graduation of benefits above £2OB in certain cases, but contributions would not be graduated. They would be made at a flat rate of Is in the £l.

“Attention is also being given to the health side of the proposals,” Mr Savage added, “and a scheme is being shaped for the payment of sickness benefits in the event of short illnesses. I am more confident than ever that the whole scheme will represent a greater measure of social security for the people than New Zealand has previously known.” The Prime Minister stated that in all probability a fair amount of authority would be given to commissioners or departmental heads appointed under the legislation to deal with certain individual cases on their merits.