§ Colonel YATEasked the Secretary to the Treasury what is the reason for introducing a new six per cent, commutation table for officers' pensions, seeing that in 1913 it was admitted that on a quarter of the total commutations effected the State had made a profit of £200,000; whether he had figures before him before he sanctioned the new table showing what the total loss or gain had been up to July last; and, if so, will he state what these figures are?
§ Mr. BALDWINThe reason for adopting the new rate is that it costs the Government considerably more than the old rate of 5 per cent, to borrow the 2141W money with which to pay commutations. Had I looked only to the circumstances of the present time it would have been necessary to adopt a higher rate than 6 per cent., but it is desirable to avoid frequent changes in the rate. The mortality rates used, which date from September, 1913, are undoubtedly very favourable to present applicants, and no detailed investigation into profit and loss was necessary.