H.- -30

The cost of modifications involving extra or reduced weekly contributions by the State can be estimated by taking the capital value of each penny per week per member at £1,000,000, or, more accurately, each shilling per week per member at £13,000,000, equivalent to £520,000 per annum in perpetuity. Scheme D.—ln the following table the capital cost to the State and the minimum annual subsidy by the State payable in perpetuity are given under the following conditions : — Benefits. —Sickness, invalidity, and orphans' benefits as in previous schemes. See section 3 A. Superannuation.—To vary with entry age —i.e., 40s. per week for all entry ages under thirty-five, decreasing by 2s. 6d. per week for each additional year of age to 15s. per week at age forty-five ; thence decreasing by Is. per week for each additional year of age to ss. per week at age fifty-five, and remaining at ss. per week for all entry ages between fifty-six and sixty-five. Widow's Pension. —£l per week for all entering under age forty-five, but no pension for widow of any man now aged forty-five or over. Contributions. —Graduated scale (to be divided equally between employee and employer) ranging from 3s. 4d. at age sixteen to 6s. at age twentyeight, remaining fixed at 6s. for all higher ages, and the State to assume liability for the balance of the capital cost and meet it by a fixed annual subsidy.

Note.—The justification for the State paying only one-fifth of the total cost instead of one-third is that under such a scheme it would be faced with some additional outgo for old-age pensions (over age fifty-five group) and widows' pensions (over age forty-five group). This has been allowed for to a great extent in Scheme E hereunder. Scheme E,— The following table shows the cost to the State of a scheme covering all persons between the ages of sixteen years and sixty-four years, both inclusive, under the following benefits : — (1) Superannuation (after age sixty-five) of varying amount, according to entry age, and ranging from 40s. (under age thirty-five) to 10s. (over age fifty). See Column 1 of table. (2) Widow's pension (until remarriage) of one-half of amount for which husband was contributing. (3) Orphans' allowance (on death of father) of ss. per week for each child under age sixteen. (4) Sickness allowance (during first six months' sickness) of 275. 6d. per week till age sixty-five. (5) Invalidity allowance (excluding first six months' sickness) of 275. 6d. per week till age sixty-five. (6) Children's allowance (during father's incapacity) of ss. per week for each child under age sixteen. [

7

Minimum Annual State T t Subsidy payable in Contributor „ Perpetuity. (including Employer). 1 1' ' EI i ■: £ ; £ £ 89,400,000 24,750,000 990,000