SOCIAL SECURITY.

Wairarapa Times-Age, 6 April 1939, Page 6

SOCIAL SECURITY.

(To the Editor.) Sir,—l will be obliged if you will let me have an answer to the following question. I have enquired at the Social Security Department, The Labour Office, the Post Office and from others, but have not received any definite answer. I know of a number of people placed in the same position who would welcome a reply, as after waiting for weeks for the Social Security Pamphlet I am more fogged than ever and find that it does not deal with the point at all. My aunt who is over 65 years of age and is a widow has £550 in the Post Office Savings Bank, she also has £5OO lent out at interest bringing in £25 a year. Some years ago a relative of hers left her the interest from £4OO for life. This is invested at 5 per centum. Is my aunt entitled to any cash benefit from the Social Security Fund and if so how. much? Another aunt is 70 years of age and has been drawing the old age pension for some years. She-has no other, income and no money saved up. She asked me to fill in all the necessary forms. I have read the So.cial Security pamphlet and have obtained her registration book and spent some time studying the 12 pages'of forms for return of income tax and Social Security returns required. Can you tell me whether she must return the amount received as Old Age pension for the year ending 31st March, 1939, under the heading of G on Form S.S.C. 55 Part 1? Many people will be helped by your reply.—l am, etc., FOGGED. Masterton, April 6.

The maximum benefit for a widow with one or more children under 16 years of age is £65 per year, plus 10s per week for each child under 16 years, the maximum total payment possiblebeing £234 per year. In the case of a widow with no children under 16 years the maximum benefit is £52 per year. Every £1 of income in excess of £7B per year, in the case of a widow with children, reduces the benefit by £1 and similarly, in the case of a widow without children, the reduction takes effect, £1 for £l, on every £1 in excess of £52 per year. The £550 in the Post Office Bank is chargeable, also the income. The £5OO lent out at interest is chargeable unless it is lent on mortgage. Whether it is lent on mortgage or not the income is chargeable. The £4OO capital value in which this person has a life interest is exempt but the income therefrom is chargeable. In arriving at the amount of benefit to be received, whichever computation (income or capital) makes the greater reduction is the one used. The maximum age benefit is £7B per year. This is reducible on an income basis, £1 for £l, on income in excess of £52 and in the case of a capital assessment by £1 for every £lO of chargeable property in excess of £5OO. Old age pension payments are not regarded as income within the meaning of the Act and do not have to be given under the heading of G on Form S.S.C. 55 Part 1. A person in. receipt of the old age pension does not have to reapply for the age benefit but must register under the Act. If a person has no income apart from a benefit application can be made for exemption from the payment of any individual levy instalment. This information was forthcoming on the above letter being referred to the Social Security Department. Technical School Building, Dixon Street, which is now open for business and any pci son requiring information relative to any aspect of the Social Security scheme except registrations, should apply a* the above office. Registrations are dealt with at the Post Office. —Ed. TimesAge.” '