25. Mr. WORTHINGTON-EVANSasked the Secretary to the Treasury (1) whether any reserves released by virtue of any scheme under Section 72 of the National Insurance Act, 1911, must be applied rate-ably for the benefit of all existing members of the society concerned; and (2) whether his attention has been called to the fact that certain friendly societies with branches have given the option to their members either to continue their present contributions and benefits in addition to those under the National Insurance Act or to take those under the Act in part substitution for present contributions and benefits; and whether any reserves released where the latter option is exercised will be shared by those who exercise the former option, or whether, as no reserves will be released in the cases of those who exercise the former option, they will be excluded from sharing in the reserves released in the latter cases?
§ Mr. MASTERMANUnder Section 72 a friendly society may, if it so determines, give to each of its members an option either to continue his present contributions and benefits or to reduce his contributions and to receive reduced benefits, whether he takes his benefits under the Act from that society or from some other society. If the member elects to reduce his contributions he will remain entitled to any excess of benefits from his society where such benefits exceed those of the Act. He will remain insured, further, for such benefits of his society as are outside the benefits provided by the Act, whilst he will become entitled to such benefits under the Act as were not originally provided by his society. The application of any reserves set free is a question for the scheme or supplementary scheme to be prepared on an actuarial valuation after it has been ascertained which members have adopted the alternative of reduced contributions and benefits under which alone can any funds be set free. The mode of application of any released funds and questions relative to the exercise of their discretion by the societies in dealing with such funds are still under consideration.
Mr. WORTHINGTON-EVANSWould the hon. Gentleman say shortly whether the released reserves are to apply rateably amongst the existing members or not?
§ Mr. MASTERMANI was very much puzzled with the word "rateably" in the hon. Gentleman's question. I do not know quite what he means by it. Perhaps he will put down a question.
Mr. WORTHINGTON-EVANSCan the hon. Gentleman say, seeing that the reserves only arise when the contributions are reduced, whether those persons only will get the benefits or whether the reserves will go to people for whom no reserves have arisen?
§ Mr. MASTERMANThat is the question which is under consideration, and to which I hope to give an answer in a few days' time.