GERMAN STATE PENSIONS.

Gisborne Times, Volume XXIX, Issue 3215, 11 May 1911, Page 2

GERMAN STATE PENSIONS.

THE SYSTEM CONDEMNED.

Although in Now Zealand we have partially solved the old age pensions problem, other countries are still striving to lind 1 a scheme that will be satisfactory to both contributors and pensioners. In view of the fact -that German social legislation is so often regarded as a model for other countries to follow, it is startling to find an eminent German authority on the subject, Privy-Councillor Friodensburg. who formerly held a high post in the Imperial State. Insurance Department, condemning in sweeping terms the entire system of old age, accident and sick pensions which exists in his own country. In an article in the. “Leitsclirift fur Pali tile,” lie declares that there .is no longer any trace of the enthusiasm with which this class of legislation was greeted on its inauguration. thirty years ago. This is partly due to the colossal financial burdens tliat have been heaped on the nation by the readiness with which expenditure was incurred at the beginning, and partly to the complete breakdown of the pension system as a means' of alleviating the hardships of the deserving poor. State pensions in Germany, instead of educating the masses in thrift, by inducing them to take part in some provision for their old age or invalidity, have exercised, by maladministration, the writer declares, a wholesale pauperising influence on the nation.. Many receive pensions without deserving them; many more receive compensation for accidents which are entirely unconnected with their factories or workshops; many desiring State pensions simulate invalidity in order to obtain them, and the result is that the national exchequer is burdened with enormous and unjustified cliarges.