SICKNESS BENEFITS

Wairarapa Times-Age, 18 July 1939, Page 5

SICKNESS BENEFITS

UNDER SOCIAL SECURITY ACT MINISTER ON SCOPE OF LEGISLATION. ATTITUDE OF EMPLOYING BODIES. IBy Telegraph—Press Association.) WELLINGTON, This Day. Explaining in detail the working and extent of the sickness benefits under the Social Security Act. Mr Parry, who lias temporary Ministerial control over the administration of the legislation, said last evening that he regretted some employing bodies had exhibited timidity as to the part they should play. One or two other bodies, he said, had decided to cease sick pay for their employees while on sick leave. That action seemed to be promoted by a desire to relieve themselves of any responsibility in that direction and to throw the whole onus of providing adequate sickness benefits on the Social Security Fund without any consideration being given to the amount of benefits which were available from that source. The attitude adopted by the Opunake Electric Power Board, for instance, could hardly be considered in the best, interests of its employees as under the social security legislation, sickness benefits were payable at limited rates varying with the conjugal responsibilities of the incapacitated worker.

SCALE OF BENEFITS.

“Under the Act,” said the Minister, "the sickness benefit rates vary from 20s a week lor a single applicant, increased by 15s a week for a dependent wife, and 5s for each dependent child so as not to exceed £4 in any one case. Apart from these sickness benefits, the commission has fixed a scale of maximum allowable income (including benefit) that applicants of the various conjugal classifications will be permittecl to receive before the maximum rate of benefit in each case is reduced. This scale is at the rate of 40s a week for a single person over 20 years of age. £3 a week for a married man without dependent children. increased by 5s a week for each dependent child under 16 years of age until it reaches £4 a week in respect of a married man with a wife and four dependent children. “In view of the amount of other income applicants may have before the rale of sickness benefit is reduced, it would be in the interests of employees generally if employing authorities were encouraged to provide sick pay benefits at least up to the maximum rate of other income allowable. In addition as a sickness benefit is not payable out of the Social Security Fund for the first seven days of incapacity, except in special circumstances, employers could give a considerable measure of relief to their workers by granting generous sick pay during this period.” THE WAITING PERIOD.

Criticism had been levelled at the imposition of a waiting period of seven days aftei- the receipt of an application at the social security office before a benefit was payable, the Minister said. As a general rule, the qualifying period of seven days commenced from the date the application was received by the department or the date of the medical examination, whichever was later. Applications, however, might be backdated up to a period of seven days, but not earlier than the day following the day the applicant ceased employment, or the day when the doctor examined the applicant and certified him as incapable of work, whichever was later. In view of the fact that, due to ignorance of procedure, many people were delaying lodging their applications and, consequently, receiving less by way of sickness benefits than they would otherwise be entitled to, the commission had authorised, meantime, the backdating of applications to the date of the medical examination or April 3, 1939, whichever was later.

The Minister referred also to comments passed on the detailed information required to be furnished in completing the application form. “When it is realised, however, that a sickness benefit is payable to an applicant both in respect of himself and his dependents, certain questions must be asked so as to determine the degree of assistance the State should give in each case,” said, the Minister. “Also, in view of the fact that there is a limit placed on the amount of other income an applicant may have, and as a sickness benefit is payable only when loss of earnings due to incapacity is suffered, it is necessary to have available full details of income so that an applicant’s eligibility for a benefit, or the amount of benefit to be granted, may be computed. With the chairman of the Social Security Commission, Mr J. H. Boyes, I have examined closely this form. As a result of our conference, the application form has been redrafted on a more simplified basis and, where necessary, it is proposed in future to obtain additional information by personal inquiry.” DEPENDANT’S BENEFITS. The non-payment of benefits to applicants who applied for a sickness benefit while they were in a public hospital was mentioned by the Minister. Prior to July 1, 1939, he said, provided applicants could qualify, sickness benefits had been paid to them while they were in public hospitals, and the dependants’ portions continued in exactly the same manner. Since July 1, however, when the hospital benefits scheme came into operation, the dependants’ portions of the benefits were continued as long as the worker remained, incapacitated and eligible for a benefit, but the applicants portion of the benefit was only payable for a period of four weeks while in a public hospital. Before the expiry of the fourth week each case was reviewed and the question of whether or not the applicant’s portion of the benefit would be continued at full rates, at reduced rates or cancelled, was determined in accordance with the merits and circumstances of each individual case, the action being entirely at the discretion of the commission.

"The Government is desirous,” Mr Parry added, "of fostering the continuance of sick pay schemes by employers at least on a basis so that employees may obtain the full benefits provided under the Social Security Act. The details of the scope of the legislation I have given will help all parties to a better understanding of the operation of the sickness benefits provided and clear the way to their smooth working.”