FORTIETH ANNUAL REPORT OF THE PENSIONS DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1938.

Appendix to the Journals of the House of Representatives, 1938 Session I, H-18

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1938. NEW ZEALAND.

FORTIETH ANNUAL REPORT OF THE PENSIONS DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1938.

Presented to both Houses of the General Assembly pursuant to Section 90 of the Pensions Act, 1926.

The Commissioner of Pensions to the Hon. the Minister of Pensions. Sir,— Pensions Department, Wellington, Ist July, 1938. I have the honour to furnish herewith, for the information of Parliament, the report of the Department relating to war, old-age, widows', Maori War, miners', epidemic, invalidity, and sundry pensions, family allowances, and war veterans' allowances for the year ended 31st March, 1938. The following comparative statement relates to the annual value and gross payments of all pensions administered by the Department for the past two years : —

Pensions in Force: Annual Value and Total Payments.

As at 31st March. 1937. As at 31st March, 1938. Class of Pension. ~ TotoP Number. Annual Value. Payments, Number. Annual Value. Payments, ! 1936-37. 1937-38. ] i £ £ | £ £ War .. .. .. 23,711 1,532,424 1,483,345 ! 24,096 J,579,724 1,597,524 Old-age .. .. .. 54.134 3,068,293 2,413,103 1 59,953 3,373.331 3,235,057 Widows' .. .. .. 4,753 464,879 412,280 | 4,982 476,907 471,287 Maori War .. .. 36 2,106 1,972 27 1,580 1,806 Miners' .. .. .. 1,040 87,838 83,253 1,060 86,537 88,167 Epidemic .. .. .. 3 76 253 .. .. 14 Invalidity.. .. .. 7,491 478,165 284,760 10,633 674,934 632,829 Boer War .. .. .. 57 2,131 2,067 55 1,939 1,991 Sundry pensions and annuities 144 13,161 13,892 142 12,642 12,554 Civil Service Act, 1908 .. 11 3,933 4,106 10 3,500 3,632 Familyallowanc.es .. .. 9,515 125,702 i 1.30,730 6,853 94,168 106,402 War veterans'allowances .. 2,079 151,713 110,667 2,204 159,279 161,267 Totals .. .. 102,974 5,930,421 4,940,428 110,015 6.464,541 6,312,530 Cost per head of European population : 1936-37, £3 5s. 9d. ; 1937-38, £4 3s. 2d.

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PAYMENTS ON BEHALF OF OTHER GOVERNMENTS. The following figures relate to the war ancl other pensions paid by the Department during the year on behalf of other Governments: —

WAR PENSIONS. Summary of War Pension Payments.

Summary of Annual Liability as at 31st March, 1938.

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Number at . , , », Government. Class of Pension. 31st March, Annual Average j Payments, 1938 Value. Pension. , 1937-38. £ £ s. d, £ Great Britain .. .. War .. .. 1,361 71,696 53 0 0 \ >, •• Army and civil .. 750 50,929 68 0 0 j-148,064 Australia .. .. .. War .. .. 518 24,158 46 12 9 25,512 India .. .. .. Army and civil .. 60 14,074 235 0 0 16,988 South Africa .. .. War .. .. 4 389 97 0 0 \ .. Civil .. .. 33 3,755 114 0 0 / 5 ' 739 Crown Colonies .. .. „ .. 41 12,966 316 0 0 13,775 Canada .. .. .. War .. .. 1 215 215 0 9 368 Totals.. .. .. 2,768 178,182 .. 210,446

Payments made in ' ; Total. London. Australia. Canada. CoZt?L New Zealand. | — 1 " j £ £ 1 £ £ £ I £ £ Total payments to 31st 1,115,651! 653,658 39,049 7,207 11,683 124,483,316 26,310,564 March. 1937 Payments in 1937-38 52,924 55,711 2,439 658 578 1,485,214 1,597,524 Total payments to 31st 1,168,575 709,369 41,488 7,865 12,261 25,968,530 27,908,088 March, 1938 j The amount paid for the year ended 31st March, 1938, shows an increase over the preceding year of £114,179. '

Class of Pension. Number of ! Number of A j 1 Average Pensioners. Children. vaiue. pension. £ £ Soldiers (permanent) .. .. .. 11,036 34 | 659,136 60 Soldiers (temporary) .. .. .. 4,439 32 318,737 72 Dependants of disabled soldiers .. .. 3,077 5,571 261,231 85 Widows (without children) .. .. 1,393 .. 135,443 97 Widows (with children).. .. .. 407 765 66' 620 164 Other dependants of deceased soldiers — Parents .. .. .. .. 3,528 .. 129,795 37 Other adult dependants .. .. 103 .. 3,445 33 Guardians of children .. .. 113 190 5'317 47 Totals, &c. .. .. .. 24,096 I 6,592 1,579,724 66

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War Pensions payable outside New Zealand as at 31st March, 1938.

Economic Pensions payable at 31st March, 1938.

War Pension Appeals. Appeals outstanding on 31st March, 1937 .. .. .. .. 383 Appeals lodged during 1937-38 .. .. .. .. ..717 1,100 Appeals dismissed during 1937-38 .. .. .. .. 464 Appeals upheld during 1937-38 .. .. .. . . . . 442 Appeals withdrawn and struck out, 1937-38 .. .. . . 24 — 930 Appeals outstanding on 31st March, 1938 .. .. .. 170 Percentage upheld, 47-5. The total number of appeals dealt with to the 31st March, 1938, was 9,345, the percentage upheld being 48. Of the 930 cases dealt with during the past year, 534 were heard at Auckland, 51'5 per cent, being upheld; 104 at Wellington, 29'8 per cent, being upheld; 213 at Christchurch, 45-5 per cent, being upheld ; and 79 at Dunedin, 49-4 per cent, being upheld.

Medical treatment of war pensioners during 1937-38 cost £68,559. Railway concessions to war pensioners on maximum permanent disablement pension and those with locomotive disabilities on permanent pension in excess of 50 per cent, cost £2,237 during the year. The loading paid on life-insurance policies of war pensioners due to war-service disability amounted to £172 for the year. Temporary war pensions to soldiers decreased by 5 and permanent pensions to soldiers increased by 389 during the year. The 541 deaths among war pensioners are made up as follows : Soldiers, 229 ; widows of soldiers, 17 ; other dependants, 295. War Veterans' Allowances. Since the passing of the War Veterans' Allowances Act in October, 1935, 3,056 cases have been granted, of which 2,204, \vith an annual value of £159,279 were in force as at 31st March, 1938. These comprised 925 single veterans, 1,218 married veterans, 59 widows, and 2 grants to orphaned children. The total dependent children in receipt of allowances as at 31st March, 1938, numbered 1,919.

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Wives and Soldiers. Parents of Dependants. Soldiers. Annual Liability. Other Permanent. Temporary. Temporary. Widows. Dependants £ Great Britain.. .. 306 58 46 141 333 51,592 Australia .. .. 357 149 70 68 102 45,609 Other countries ..61 17 6 7 20 5,131 Totals .. 724 224 122 216 455 102.332

Average Class. Number. Annual Value. Annual Grant. I I £ £ Soldiers with permanent pensions .. .. .. 1,965 119,663 61 Soldiers with temporary pensions .. .. .. 1,481 91,547 62 Widows with children .. .. .. .. 99 3,035 1 31 Widows without children .. .. .. .. 400 15,453 39 Widowed mothers .. .. .. .. .. 141 6,516 46 Totals .. .. .. .. .. 4,086 236,214 58

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War Veterans' Allowances Appeals. Appeals outstanding on 31st March, 1937 .. .. .. 18 Appeals lodged during 1937-38 .. .. .. .. .. 55 — 73 Appeals dismissed during 1937-38 .. .. .. .. .. 41 Appeals upheld during 1937-38 .. .. .. .. 23 Appeals withdrawn and struck out, 1937-38 .. .. .. .. 3 — 67 Appeals outstanding on 31st March, 1938 .. .. 6 Percentage upheld, 34-3. FAMILY ALLOWANCES. The claims lodged during the year totalled 1,021, which, with the 152 outstanding from the previous year, made a total of 1,173 to be dealt with. Of these, 774 were accepted and 313 rejected. Of the rejected claims 117 represent cases where the income of the family was in excess of the limit allowed. Three hundred and eighty-one new claims from Maoris were finally dealt with during the year, 244 being granted and 137 rejected. The total children of the 6,853 allowances in force as at 31st March, 1938, and those in excess of two in a family numbered 32,302 and 18,596, the average per family being 4-71 and 2-71 respectively. The total amount paid during the year was £106,402, while the total annual value of all allowances in force at the close of the year was £94,168.

Weekly Rates at which Allowances granted.

Numbers according to Size of Family.

Weekly Incomes of Families.

COST OF ADMINISTRATION. The cost of administration for the year amounted to £110,494, the principal items of expenditure being £56,944 for salaries of officers of the Department, who numbered 286 as at 31st March, 1938 ; £28,661 and £4,869 paid to the Postal Department for payment of pensions and postage and telegrams respectively ; £5,690 for salaries and other expenses of the War Pensions Appeal Board ; and £2,477 for salaries of the War Pensions Board. The percentage of cost of administration to the total pension payments made of £6,522,976 (including £210,446 paid on behalf of other Governments) was 1-69, or 4-ld. in the pound. LEGISLATION. The scope of the old-age and invalidity pensions legislation has been widened during the financial year by sections 29 and 30 of the Finance Act, 1937, and by the Pensions Amendment Act, 1937. The provisions of section 29 of the Finance Act, 1937, increased the period of absence from New Zealand allowed to an applicant for invalidity pension from six months during the preceding ten years to twelve months, plus one month's absence for every year of residence in excess of ten years. Section 30 of the Finance Act, 1937, provided that any applicant whose incapacitating condition originated elsewhere than in New Zealand should, if actually resident in New Zealand on 4th September, 1936 (the date of the passing of the Pensions Amendment Act, 1936, which enacted the original invalidity-pensions legislation), be eligible for an invalidity pension on the completion of ten years' residence, and, if not actually resident in New Zealand on that date, on the completion of twenty years' residence. The Pensions Amendment Act, 1937, reduced the period of residence in New Zealand required by an applicant for old-age pension from twenty years to ten years for every applicant who was actually resident in New Zealand on 15th March, 1938, the date of the passing of the amendment.

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Weekly Rate. Is. i 2s. 3s. 4s. 5s. 6s. 7s. 8s. 9s. 10s. ! ] Is. 12s. 14s. 16s. I | 1 I I ! Number granted .. 7 390 6 176 7 94 , .. 49 1 25 1 14 3 j 1

Number of Children , 0 _ in Excess of Two. * 9. 10. Number of families .. 386 178 i 102 59 28 15 3 3 I I I

Weekly Income. £1 and under. Over £1 and up Over £2 and up Over £3 and up 0 v m « J to £2. to £3. to £4 Uver 14 Number of families .. 1 14 76 291 362 31

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Statistics in regard to Civil Pensions.

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i ~~i ' r i r ' : Old-age. i Widows'. Maori War. | Miners'. Invalidity. Epidemic. Pensions in force at 31st March, 1937 .. 54,134 4,753 36 \ 7,491 3 I 1 '"T J New pensions granted, 1937-38 .. .. 10,685 1,033 .. / Itlr 4 373 1 38+ J ' Deaths during 1937-38 .. .. .. 3,956 3 9 65 755 Cancellations during 1937-38 .. .. 910 801 .. 29 476 3 Net increase or decrease .. .. .. +5,819 +229 —9 +20 +3 142 —3 Pensions in force at 31st March, 1938 .. 59,953 4,982 \ jq^633 Total children in receipt of pension, 31st .. 9,845 . 383 3 067 March, 1938 Total European pensioners .. .. 57,132 4,462 16 1,060 10,080 Total Maori pensioners .. .. .. 2,774 520 11 .. '548 Total Asiatic pensioners . . .. .. 47 .. . . .. 5 under section 7 (b), Pensions Act, 126 1926 ...... Percentage of European pensioners to total 3-76 0-29 . . 0-07 0-66 European population New claims lodged .. .. .. 12,596 1,330 .. 168 6,828 New claims rejected .. .. .. 2,065 332 .. 73 3 033 Number of children on whose account pension .. 2,199 granted Annual liability at 31st March, 1938 .. £3,373,331 £476,907 £1,580 £86,537 £674,934 Average pension per annum .. .. £56 5 4 £95 14 6 £58 10 0 £81 12 9 £63 7 8 Gross expenditure for year 1937-38 .. £3,235,057 £471,287 £1,806 £88,167 £632,829 £14 Increase or decrease on figures of previous +£821,954 +£59,007 —£166 +£4,914 +£348.069 —£239 year Cost, per head of European population .. £2 2s. 7d. 6s. 2d. 0-3d. Is. 2d. 8s. 4d. Credit from national endowment .. .. £42,660 Refunds paid to Public Account .. .. £1,390 £152 .. £8 £305 Number of pensioners in homes and hospitals 1,653 .. 1 25 1 080 Amount paid to controlling authorities of £102,318 .. £130 £1,105 £58'493 these Number of pensioners in mental hospitals .. 216 3 2 Amount paid to Mental Hospitals Depart- £11,679 £65 .. £103 ment on account of these Unpaid instalments as at 31st March, 1938 .. £7,201 £1,314 £15 £238 £2 935 Instalments forfeited and subsequently paid.. £3,967 £598 £5 £36 £4'594 Average of family under fifteen years .. .. 1-98 Total claims lodged to date .. .. 178,759 22,919 1,893 19J31 Total claims established .. .. .. 142,883 19,170 1,698 2,772 972 Total claims rejected .. .. .. 34,457 3,665 195 '839 6239 Total number of children benefited.. .. .. 45,744 Total deaths .. .. .. .. 67,436 154 1,665 1,095 i!o95 14 Total guardians appointed . . .. .. 437 Total cancellations .. .. .. 15,494 14,034 6 617 643 958 Grand total paid to date .. .. .. £30,743,778 £5,734,953 £611,215 £991,625 £1,091,446 £474,101 Total amount paid on account funeral expenses .. .. £10,448 Total credit from national endowment .. £903,049 .. .. Invalidity appeals— Appeals outstanding on 31st March, 1937 .. .. .. . . ., jgg Appeals lodged during 1937-38 . . . . .. . . , . . 944 Appeals dismissed during 1937-38 .. . . .. .. ,. 558 Appeals upheld during 1937-38 .. . . . . .. . . . , 43I Appeals withdrawn and struck out 1937-38 .. .. .. .. 64 Appeals outstanding on 31st March, 1938 .. .. .. . . ., 57 Percentage upheld .. .. .. .. .. .. _ _ 40-9 * Miners. + Widows of miners. £ Pensions may be granted to males sixty years and over and to females fifty-five years and over in cases where two or more children under fifteen are being maintained. The 126 cases above comprise : European — Males, 60 and under 65, 102 ; females, 55 and under 60, 12; Maori — Males, 60 and under 65, 10; females, 55 and under 60, 2. Total European population at 31st March, 1938, 1,517,712.

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Pensions granted, Deaths, and Cancellations in each Year, with Number in Force.

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Year ended umberof n Cancella- \ a JT° t 31st March, Deatha ' tions. |' -gg-Old-age. 1899-1900 12,186 824 77 11,285 1901-1910 17,848 10,237 3,576 15,320 1911-1920 24,028 16,017 3,338 19,993 1921 .. 2,152 1,880 428 19,837 1922 .. 2,553 1,578 321 20,491 1923 .. 2,781 1,763 328 21,181 1924 .. 2,549 1,870 392 21,468 1925 .. 2,654 1,635 425 22,062 1926 .. 3,100 1,839 418 22,905 1927 .. 3,302 2,049 407 23,751 1928 .. 3,638 2,093 421 24,875 1929 .. 3,614 1,968 411 26,110 1930 .. 3,506 2,242 465 26,909 1931 .. 4,640 2,202 352 28,995 1932 .. 5,806 2,188 296 32,317 1933 .. 5,534 2,262 657 34,932 1934 .. 5.509 2,369 565 37,507 1935 .. 5,934 2,744 556 40,141 1936 .. 6,476 2,746 562 43,309 1937 .. 14,388 2,974 589 54,134 1938 .. 10,685 3,956 910 59,953 Totals.. 142,883 67,436 15,494 Widows'. 1912-1920 5,817 47 2,326 3,444 1921 .. 627 8 642 3,421 1922 .. 523 3 598 3,343 1923 .. 616 12 536 3,411 1924 .. 730 8 607 3,526 1925 .. 602 6 524 3,598 1926 .. 684 2 447 3,833 1927 .. 705 6 562 3,970 1928 .. 761 4 629 4,098 1929 .. 823 5 584 4,332 1930 .. 702 6 655 4,373 1931 .. 815 9 613 4,566 1932 .. 798 8 647 4,709 1933 .. 731 3 750 4,687 1934 .. 703 5 766 4,619 1935 .. 687 2 799 4,505 1936 .. 696 10 822 4,369 1937 .. 1,117 7 726 4,753 1938 .. 1,033 3 801 4,982 Totals.. 19,170 154 14,034 I Invalidity. 1925 .. 114 .. 114 1926 .. 92 9 1 196 1927 .. 46 6 4 232 1928 .. 39 11 1 259 1929 .. 43 14 6 282 1930 .. 47 10 8 311 1931 43 18 6 330 1932 .. 45 13 2 360 1933 .. 52 9 8 395 1934 .. 60 12 5 438 1935 .. 70 24 10 474 1936 .. 55 13 9 507 1937 .. 7,292 201 107 7,491 1938 .. 4,373 755 476 10,633 Totals.. 12,371 1,095 643 *This represents 731 reinstatemen

Year ended i N p umb . orof .. .. Cancella- I ( n /° rcf : 31st March, Pens ' 0 " 3 Deaths - tions. a ! 1 End J of granted. lu Period. Family Allowances. 1928 .. 3,154 25 123 3,006 1929 .. 1,437 39 641 3,763 1930 .. 1,004 I 41 858 3,868 1931 .. 1,399 46 604 4,617 1832 .. 3,040 56 ' 269 7,332 1933 .. 3,841 68 785 10,320 1934 .. 3,022 68 1,129 12,145 1935 .. 2,166 63 1,927 12,321 1936 .. 1,730' 55 2,305 11,691 1937 .. 1,131 25 3,282 9,515 1938 .. 774 7 3,429 6,853 Totals.. 22,698 493 15,352 I Maori War. 1913-1920 1,691 750 2 939 1921 .. 2 130 811 1922 .. 1 72 740 1923 .. 1 71 1 669 1924 .. 1 80 1 589 1925 .. 1 71 519 1926 .... 74 1 444 1927 .... 70 374 1928 .. .. 66 .. 308 1929 .. .. 49 .. 259 1930 .. .. 50 .. 209 1931 .. 1 40 170 1932 .. .. 27 .. 143 1933 .. .. 36 1 106 1934 .. .. 20 86 1935 .. .. 21 .. 65 1936 .... 22 43 1937 .. ■. 7 36 1938 .. .. 9 27 Totals.. 1,698 ,665 6 War. 1916-1920 49,254 953 13,730 34,571 1921 .. 2,207 358 4,656 31,764 1922 .. 945 369 3,249 29,091 1923 .. 625 358 2,898 26,460 1924 .. 551 361 3,484 23,166 1925 .. 432 334 1,946 21,318 1926 .. 353 369 586 20,716 1927 .. 350 353 88 20,625 1928 .. 330 401 -6 20,560 1929 .. 398 360 —88 20,686 1930 >. 347 405 —111 20,739 1931 .. 431 387 -242 21,025 1932 .. 348 432 —100 21,041 1933 .. 352 400 —111 21,104 1934 .. 365 419 -264 21,314 1935 .. 463 445 —346 21,678 1936 .. 740 451 —664 22,631. 1937 .. 1,136 484 —428 23,711 1938 .. 665 541 *—261 24,096 Totals.. 60,292 8,180 28,016 nts, less 470 actual cancellations.

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Pensions granted, Deaths, and Cancellations in each Year, with Number in Force —continued.

H. Digby Smith, Commissioner of Pensions.

A pproximate Cost of Paper.—Preparation, not given ; printing (675 copies), £11.

By Authority: E. V. Paul, Government Printer, Wellington. —1938.

Price 6d.~\

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„ , , Number of I ~ | In Force Yearended ng a " i at End of 31st March, rant d | tions. p0riod i 6 i I I Miners'. 1916-1920 683 133 135 415 1921 .. 107 43 5 474 1922 .. 78 38 8 506 1923 .. 96 52 6 544 1924 .. 88 48 4 580 1925 .. Ill 70 14 607 1926 .. 96 50 13 640 1927 .. 84 51 5 668 1928 .. 104 47 4 721 1929 .. 94 53 2 760 1930 .. 86 59 8 779 1931 .. 153 51 5 876 1932 .. 175 56 4 991 1933 .. 100 52 296 743 1934 .. 70 51 26 736 1935 .. 124 48 29 783 1936 .. 142 70 4 851 1937 .. 267 58 20 1,040 1938 .. 114 65 29 1,060 Totals.. 2,772 1,095 617 War Veterans' Allowances. 1936 .. 1,061 7 11 1,043 1937 .. 1,468 44 388 2,079 1938 .. 527 53 349 2,204 Totals.. 3,056 104 748

, , Number of ,, „ In Force ,,!' y , Pensions Deaths, t a j" 6 a at End of granted. | tl0ns " j Period. Epidemic. 1920 .. 939 1921 .. 27 4 113 849 1922 .. 6 .. 172 683 1923 .. .. 2 112 569 1924 .... 1 111 457 1925 .. .. .. 92 365 1926 ... 1 51 313 1927 .... 2 52 259 1928 .... 3 47 209 1 1929 .. .. .. 21 188 1930 .... 1 27 160 193 .. 22 138 1932 .. .. .. 27 111 1933 .. .. .. 13 98 1934 .. .. .. 30 68 1935 .. .. .. 34 34 1936 .. .. .. 24 10 1937 .... .. 7 3 1938 .. .. .. 3 Totals.. 972 14 958