344

APPENDIX A.

in the same society with a common Contingencies Fund, and having
regard to the relative risks of excess in the sickness and disablement
claims of the sexes we can see no justification for requiring, in the case
of women, a smaller contribution for the purpose of these funds than that
called for in the case of men. The effect of this recommendation will be
to release from each weekly contribution for the new purposes ‘81d. for
a man and 15d. for a woman.

98. Two consequential changes in the present system follow on this
recommendation. The first of these relates to the Central Fund. The
limit on the sum to be transferred to this fund under the existing statute
is one-eighth of the contributions credited to the Contingencies Funds. It
is important that the maximum charge upon the resources of the Approved
Societies for the support of the Central Fund should not be sensibly
reduced, and, since we advise a reduction of rather more than one-half in
the sums to be transferred to the Contingencies Funds, we recommend that
one-fourth instead of one-eighth of these sums be made available as the
maximum draft for the Central Fund.
An analogous adjustment is advised in respect of the pooling provisions
of the Act with reference to the Contingencies Funds of the unassociated
societies with under one thousand members. At present one-half of these
funds is liable to be pooled for the purpose of making good the deficiencies
of societies in this category, the other half being reserved for the use of the
societies individually. Since our recommendation will so largely reduce the
Contingencies Funds, we advise that the whole, instead of one-half in the
case of the societies in question, be brought under the liability to be pooled.
99. The margin for other purposes (to use the words of our terms of
reference) which, in our opinion, may be taken from the present contribution—subject,
 in the case of women, to the qualifications expressed in
para. 20 above—is obtained by bringing together the margins in the
several parts of the contribution as stated in paras. 25, 26 and 27. The
combined amounts are 1'55d. per week in the case of men and ‘82d. per week
in the case of women.
These amounts are made up as follows: —

From the Benefit Fund contribution (para. 25) ...
From the contribution retained for the service of
Reserve Values (para. 26) ny a ah
From the Contingencies Fund contribution
(para. 27) ia ia ria sie vee Sue

Total

1:54;

‘Women.
d.
‘35

*39

13

“89

30. These figures constitute the answer to the question submitted to us,
but, since the contribution of which in each case they form a part is payable
 only until the age of 656 and is intermitted in weeks of sickness and
disablement and of unemployment, it remains to be considered for whav
expenditure the margin will provide in the case of insured persons of each
sex. This question admits of a variety of answers according to the nature
of the purposes involving new expenditure which may be contemplated. 1t
is nob within our province to anticipate the questions which may arise in
this connection, but, having regard to the number of possibilities involving
the provision of a capitation rate continuing during life which present
themselves on examination of the evidence taken by the Royal Commission,
we have deemed it advisable to examine the margin from this point of
view. We find that with the State grant added it would provide an annual
amount of 7s. for a man and 3s. 9d. for a woman, to continue during life
or otherwise so long as medical benefit is provided. If the new expenditure
 took this form some addition to the reserve values would be necessary,