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less or no additional cost.
The death benefit tentatively
suggested by the Association would allow the family of a
worker who dies under the age of 65 a lump sum equal to say,
one month's salary for each year under 65, e.g. if a worker
dies at 35, the lump sum payment would be 30 months' salary.
The approach suggested by the Joint Associations
11.
Committee has the following advantages:
(i)
(ii)
(iii)
it would provide additional benefits for employees
in a way that was accepted by employers without
the need for building up a new Government
administrative structure;
there would be no employees' resistance since
employers would bear the full liability, whether
through private insurance arrangements or not;
employees would not contribute at all;
the contributions required of employers would be
lower than in any contributory scheme. Most
employers would probably regard the liabilities
as contingent liabilities; and
(iv) the degree of Government supervision required
would be considerably less than in any centrally
administered contributory scheme.
The disadvantages are seen as :
(b)
(a) An approach that relied on private arrangements
by employers would make much more complex any
future Government development of social insurance.
An acceptable scheme would have to provide a fair
deal for those moving from job to job or who were
temporarily out of work. That is, there must be
full transferability of accrued benefits. Without
this, there would not be adequate arrangements for
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