MAJORITY REPORT. 
77 
their accrued liabilities, as actuarially valued, by about 
£37,000,000. In consequence of this change the portion of the 
contributions retained for the service of reserve values was reduced 
from 12d. to 1d. a week (men) and from 12d. tod. a week 
(women). The estimated amount of the reserve values out- 
standing at 31st December, 1926, is £61,000,000; it is expected 
that these credits will be redeemed, i.e., will be converted wholly 
into actual and invested assets, by about the year 1955. 
164. As indicated in paragraph 159 above, the portion of the 
contributions which is applied to the Contingencies Fund is 
credited to the Societies. The Contingencies Fund of each 
Society is, in effect, a sub-account of the Society’s Benefit Fund, 
and the amount standing to the credit of the account is carried 
to the Benefit Fund after each valuation. In the event of the 
valuation showing a deficiency the amount thus transferred from 
the Contingencies Fund is available immediately for the restora- 
tion of solvency; but if the valuation shows a surplus, the 
transferred sum must be retained until after the next valuation 
when, if the financial position permits, it is released and becomes 
part of the surplus available for the provision of additional 
benefits. The same provision applies with regard to any balance 
of a Contingencies Fund which may remain after making good 
a deficiency. 
165. There are two exceptions to this method of dealing with 
the Contingencies Funds. In the case of a Society with 
Branches, although each Branch has its own independent Benefit 
Fund, the Contingencies Fund is common to the whole Society. 
It is required to be applied in the first instance to make good any 
deficiencies appearing on the valuation of Branches (subject to 
certain reservations in cases where deficiency is due to malad- 
ministration), any balance then remaining being distributed over 
the whole of the Branches in suitable proportions. The other 
cases of exception are those of Societies with less than 1,000 
members. In these cases a proportion of the Contingencies 
Funds, not exceeding one-half, is liable to be called upon for the 
redemption of deficiencies among Societies in the group, thus 
ensuring that these small Societies which may be deemed to be 
liable to excessive fluctuations due to paucity of numbers shall 
have some further security belyond their own resources, addifional 
vo that which is provided for all Societies by the Central Fund. 
166. The purpose of the Central Fund is to make good the 
whole or any part of a deficiency which remains unprovided for 
efter a Society's Contingencies Fund is absorbed, or its rights 
against Contingencies Funds, as above explained, are exhausted, 
provided that the deficiency is attributable to causes beyond the 
control of the Society. It has been explained in paragraph 159 
that a portion not exceeding one-eighth of the contributions to 
the Contingencies Funds may be retained by the Department 
concerned and credited to the Central Fund. In addition the