§ 26. Mr. PETOasked the Secretary to the Treasury what is the amount of money in reserve on the 1st January, 1914, derived from the contributions of insured persons and their employers who have died without drawing any benefit, and the total amount on 1st January, 1914, derived from persons who have forfeited their benefits on account of being in arrear?
§ Mr. WEDGWOOD BENNIn answer to the first part of the question the contributions paid on behalf of members, of approved societies, who themselves have drawn no benefit, are applied to the benefits of those persons whose claims exceed their contributions, and this general rule of mutual insurance applies equally to contributions paid in respect of persons who have died as it does to the contributions paid in respect of persons still living. The contributions in question are therefore not in the nature of profits, and no separate account of them is kept by the societies. As regards the second part of the question, arrears will not affect the rate of benefit payable to employed contributors until after July next, and, since under Section 8 of the Act of 1913, any reduction, postponement, or suspension of benefits in consequence of arrears must be approximately equivalent to the value of the loss occasioned by the failure to pay the contributions in question, no profit can at any time accrue from this source.
§ 27. Mr. PETOasked the amount in reserve in the Post Office class on 1st January, 1914, derived from persons who have died without receiving benefit and from persons who have failed to keep up their contributions?
§ Mr. WEDGWOOD BENNThe sums available for payment, either as sickness benefit or under the provisions of Section 42 (f) of the principal Act, to representatives of Deposit Contributors whose deaths have been notified to the Commissioners, amounted in England to £577 on 1st January, 1914. As regards the second part of the question it is at present impossible to distinguish contributors who have gone out of insurance from those who have ceased to pay contributions as deposit contributors, because they have joined approved societies, as in a large number of cases notifications of transfer have not yet been received from societies by the Commissioners.