FRIENDLY SOCIETIES FINANCE

Wairarapa Daily Times, Volume XVI, Issue 5138, 24 September 1895, Page 2

FRIENDLY SOCIETIES FINANCE

THE NEED FOR RECONSTRUC. TION. Mr Mason, Registrar of Friendly Societies, has submitted to the Government a scheme for the reconstruction of the finances of friendly societies upon a sound basis, Tho Registrar draws attention (sayß the N.Z. Times) to the fact that the greater sickness rate at tho higher ages, and the light mortality in New Zealand cannot fail to produce an increased

total sickness after middle life, So long as the sickness benefit is continued throughout lifo it is probable that the rule whioh limits the benefits to members suffering from specific sickness, will not be strictly enforced, This, which means the payment of old age pensions under the guise of sickness beneftt is in England understood to accoM for a considerable part of thb existing deficiencies, Mr Mason' urges that all societies should therefore remove this source of danger, and to those who will be left the chance of insolvency or reconstruction, the adoption of a fixed age at which benefits shall cease, is not only : necessary but urgent, Unless some action is taken by tho unsound societies, some members will receive their benefit in full, while others irill have to go unsatisfied. In order that all may be fairly treated, they must accept a compromise, however \ unpalatable, and reconstruct, It is higk time, he goes on to say, that societies should cea&e to enrol mem. bere when it is certain they will not be able to . keep faith with them. The effects of the adoption of a fixed age at which contributions shall cease will be that in some sooieties there will be a aurplus, in others solvency, and in tito, remainder a deficiency. As to w ' last mentioned there must be furthlr action if they are to become solvent. In cases of there being a surplusj Bnch surplus should be devoted to an old age annuity, in connection with whioh the State might offer w old , age annuity,"not exceeding £26, on liberal terms. In connection with . bis proposals, Mr. Mason strongly of uniform subscriptions at all ages, ,