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MAJORITY REPORT. 
Q! 
7 
employer’s share of the contribution would be possible, but would 
probably give rise to dissatisfaction as reducing the employer's 
share of the joint contribution below that of the worker, a position 
which, in any case, would be inconsistent with that existing in 
the case of women, where the employer pays for the combined 
health and pension benefits 1d. a week more than the worker. 
These difficulties in the way of devising any reduction of con- 
tributions which would be free from serious objection preclude 
us from recommending that the margin should be utilised in this 
way. In coming to this conclusion we are assisted by the fact 
that, in view of the small margin available, no reduction of the 
contribution would be possible, in any case, in respect of women. 
187. There remains the possibility of using the margin, or 
part of it, to reduce the charge upon the State. - We do not 
regard it as falling within our province to consider whether 
such a reduction should be made, but we have been impressed 
by the extent to which the original conditions under which the 
State grant was fixed have been altered by subsequent events, 
and we think it incumbent on us to explain the situation as it 
presents itself to us. 
188. We have shown in paragraph 160 that the State grant 
was fixed at two-ninths of the benefits in consideration of the 
imposition upon the contributions of the insured persons and 
their employers of the liability to provide the necessary reserves 
in respect of seven-ninths of the benefits for the population 
brought into insurance at the outset. It followed from this 
arrangement that from the increase of benefits in 1920 up to 
31st December, 1925, the charge upon the contributions for this 
purpose was 12d. a week in the case of men and 13d. a week in 
the case of women. By the Pensions Act of 1925 these rates 
were reduced, respectively, to 1d. and ‘90d., while the Actuarial 
Committee recommend, in connexion with the change of basis, 
that if the margins are applied uniformly over life, as explained 
above, they should be further reduced to .-80d. and -60d., 
respectively. 
189. Reductions of over 50 per cent. in the contributions of the 
insured for the redemption of reserve values are thus envisaged. 
At the same time the Exchequer continues liable to provide 
its correlative grant of two-ninths of the expenditure on benefits, 
and this is only to be abated by the cessation from 1928 onwards 
of the grant in respect of sickness and disablement benefits to 
persons aged between 65 and 70, a relief which amounts to no 
more than 7 per cent. of the full charge. The disparity between 
the relief which is to accrue to the insured persons and that which 
the State obtains on its related obligation is emphasised by certain 
of the causes to which the reduction in the reserve values is due. 
These are the provision of pensions at the age of 65, which has 
imposed a heavy charge on the State, and the increase in the rate 
34702 
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