HC Deb 10 June 1912 vol 39 cc504-5

asked the Secretary to the Treasury what amount of the estimated initial reserve values would be released in the case of insured male lives if each male contributor falls into arrear, the arrears for the purposes of Schedule V. being assumed to amount to thirteen contributions a year on the average?


No reserves are released in the circumstances named. The member becomes suspended from sickness and disablement benefits, but under Section 10 (1) has the option at a subsequent date on becoming employed of receiving such benefits as his contributions during the whole period of his membership would have entitled him to.


asked whether the Secretary to the Treasury will request the Insurance Commissioners to issue Tables similar to Tables A, B, VIII., IX., X., XL, XII., XIII., and XIV. of Messrs. Hardy and Wyatt's Report, dated 28th November, 1911, showing the contributions at the age of sixteen for minimum benefit, the estimated aggregate initial reserve values, and the total amount required to meet the cost of the various benefits each year, the calculations to be based on the rates of sickness and mortality adopted by the Commissioners in calculating the reserve values in place of being based on the rates of sickness and mortality adopted by Messrs. Hardy and Wyatt?


There is no material difference between the results of Messrs. Hardy and Wyatt's calculations and those made officially since the passing of the National Insurance Act. The calculation of such Tables as those named in the question is not in any way required for the administration of the Act, and it would be impossible to take the Chief Actuary and his staff away from the important duties with which they are occupied at present in order to undertake it.


Is it not the fact that owing to the differences between the methods of calculation there is a large hidden reserve which would afford considerably better benefits than could be obtained under the Act?


I think that is not so. If the hon. Member compares the two Tables I think he will find that the results are practically the same in each case.