§ (1) Every registered friendly society which becomes an approved society under this Part of this Act, and which provides benefits similar to those conferred by this Part of this Act, shall submit to the Registrar of Friendly Societies a scheme for continuing, abolishing, reducing, or altering such benefits as respects members who become insured persons and for continuing, abolishing, or reducing the contributions of such members, so, however, that the combined effect of the alteration of the benefits and contributions shall not prejudicially affect the solvency of the society, and, if the scheme shows on an actuarial valuation that, owing to the alteration of the benefits and contributions effected by the scheme, any part of the existing funds of the society is set free as not being required to meet the liabilities of the society, the scheme shall provide for the application of the part of the funds so set free in any one or more of the following ways:
- (a) towards the cost of the provision of other or increased benefits payable by the society independently of this Part of this Act to existing members whether insured persons or not;
- (b) in reduction of the contributions payable by such members in respect of the benefits payable by the society independently of this Part of this Act;
- (c) towards the payment of contributions payable by such of its members under this Part of this Act as are entitled and elect to receive benefits under this Part of this Act through the society.
§ (2) This Section shall apply to branches of registered societies in like manner as to societies: Provided that a society with branches may, if it so desires, submit a scheme applicable to all its branches, and it shall be competent for the society to provide by its scheme for the application of the whole or any part of any sums so set free towards the discharge of any deficiencies in the other branches which may be found to exist on such actuarial valuation as aforesaid.
§ (3) Any scheme adopted by a society or branch of a society by a vote of the members taken in accordance with its rules and when confirmed by the registrar shall be deemed to be incorporated in the registered rules of the society or branch and may be altered accordingly, so, however, that no alteration shall be inconsistent with the provisions of this Section.
§ (4) This section shall apply to seamen, marines, and soldiers, from whose pay deductions are made under this Part of this Act as if they were insured persons.
§ (5) This Section shall come into operation on the passing of this Act.
§ Amendments made: In Sub-section (1), leave out the words "which becomes an approved society under this part of this Act and."
§ After the word "to" ["benefits similar to those conferred by this Part of this Act"], insert the words "any of."
§ In paragraph (c), after the word "payment," insert the words "or repayment."
§ After the word "payable" insert the words "under this Part of this Act."
§ After the word "its," insert the word "existing."
§ Leave out the words "under this part of this Act."
§ In Sub-section (2), after the word "desires," insert the words "(subject always to the exercise of any right of a branch, expressly conferred by the rules of the society, to dispose of any of its funds for the benefit solely of the members of the branch)."
§ Leave out the words "the other," and insert instead thereof the words "any of its."
764§ In Sub-section (3), leave out the words "by a vote of the members taken."
§ After the word "registrar," insert the words "of friendly societies."
§ Leave out the word "altered," and insert instead thereof the word "amended."
§ Leave out the word "alteration," and insert the word "Amendment."
§ In Sub-section (4), at end, insert the words "and for the purposes of this Section 'existing' means existing at the passing of this Act."—[Mr. Lloyd George.]