§ SIR SEYMOUR KING (Hull, Central)To ask the Secretary of State for India whether the quinquennial valuation of the Indian Civil Service Family Pension Fund is, as in the case of the Military Fund, long overdue; when will it be completed; whether, at the last valuation, after allowing interest at the rate of 4½ per cent. per annum on the funds, it was found necessary to enhance the rate of contribution of the subscribers by 27½ per cent., in order to maintain the solvency of the fund; whether this was due to the cost of management, which showed a charge of £3 by the Government for every £7 paid to widows and orphans; whether Mr. Day, the actuary who was consulted, suggested that the Government should manage the fund free of expense; and, if so, will he say why his suggestion was not adopted.
§ (Answered by Mr. Secretary Morley.) The last published valuation showing the assets and liabilities arising under Indian Civil Service Family Pension Regulations as on 30th September, 1898, was published; in the Gazette of India on the 30th August, 1474 time Provinces of India, in each of the last three years, as follows—
§ 1902. A new valuation as on 31st March, 1905, is now being made, and will probably be completed about the end of July. The rates of subscription were reduced, as a temporary measure, in 1896 by 27½ per cent., but in 1902 it was found necessary to revert to the full rates in order to maintain an equilibrium between prospective subscriptions and benefits. For the purposes of valuation the expenses of management are assumed to be 2½ per cent. on the receipts and 1 per cent. on the payments. In reporting on the valuation as on the 30th September 1898, Mr. Stanley Day stated that, if a lower rate of interest than 4½ per cent. were adopted for the purposes of the valuation, Government might undertake to manage the fund free of expense, but as the valuation was based on the rate of 4½ per cent., no change was made in this respect.