POST AND TELEGRAPH DEPARTMENT: OLD-AGE PENSIONS BRANCH (THIRTEENTH ANNUAL REPORT OF THE) FOR THE YEAR ENDED 31st MARCH, 1911.

Appendix to the Journals of the House of Representatives, 1911 Session I, F-09

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1911. NEW ZEALAND.

POST AND TELEGRAPH DEPARTMENT: OLD-AGE PENSIONS BRANCH (THIRTEENTH ANNUAL REPORT OF THE) FOR THE YEAR ENDED 31st MARCH, 1911.

Presented to both Houses of the, General Assembly pursuant to Section 69 oj the Old-age Pensions Act, 1908. The Commissioned uv Old-age Pensions to the Right Hon. the Minister of Finance. Sir. — Old-age Pensions Office, Wellington, 30th June, 1911. 1 have the honour to submit, for the information of Parliament, a resume of the work of the Old-age Pensions Office for the year ended the 31st March, 1911. Points of interest at the close of the year are as follows, a comparison being shown with the figures of the previous year :— At 31st March, 1911. At 31st March, 1910. European population of New Zealand .. .. 1,008,407 987,480 Maori population of New Zealand .. .. 49,343 47,731 (1906 census) Estimated European population, sixty-five years and over .. .. .. 46,586 44,838 Estimated European population, sixty-five years of age, and twenty-five years in New Zealand .. 11,556 40,238 Number of pension-claims lodged since Act came into operation on Ist January, 1899 .. .. 42,271 39,316 Number of pensions granted since Act came into operation on Ist January, 1899 .. 32,433 30,034 Number of European pensioners on the roll .. 15,336 14,626 Number of Maori pensioners on the roll .. .. 684 694 Percentage of European pensioners to total European population .. .. .. .. 1-52 1-48 Percentage of European pensioners to European population, sixty-five years and over .. .. 320 320 Percentage of European pensioners to European population eligible by age and residence .. 36-0 36-0 Percentage of Maori pensioners to total Maori population .. .. .. .. 1-38 1-45 Number of pensioners in receipt of full pension of £26 13,936 11,£27 Percentage of these to total number of pensioners .. 87-0 77-0 Amount paid in pensions during year .. .. £383,393 £362,496 Cost per head of European population .. .. 7s. 7d. 7s. 4d. Total amount paid in pensions since Act came into operation.. .. .. .. £3,150,404 £2,767,011 Cost of administration during year .. .. £3,803 £3.290 Percentage of cost of administration to annual payi ments .. .. .. .. .. 0-99 0-90 Cost of administration since Act came into operation £51,181 £47,378 Percentage of total cost of administration to total - payments.. .. .. .. 1*62 1-71 __

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Amendment or Act. During the year an amending Act, of four sections, passed through Parliament, the main features of which were —(1) The restoration of the allowance of £50 from cash and other forms of property not constituting a home discontinued under the 1909 Act; and (2) a straight-out exemption of £340 from the home (including furniture and personal effects) of an applicant, in lieu of the provision of the 1909 Act, whereby the home was charged as income at the rate of £1 for every £10 in the net capital value thereof. The effect of this amendment, which received the Governor's assent on the 21st November, 1910. and came into operation on the Ist January, 1911, was to immediately increase the amount being paid to the pensioners already on the roll by the sum of £11,843 per annum, or. approximately, £1,000 per month. As no variation of an individual pension can be made by law without the authority of a Magistrate, and as the holding of special pension Courts locally to get the increases through was out of the question in the limited period allowed —a little over a month, arrangements were made with Magistrates throughout the Dominion to authorize the increases on schedules prepared at Head Office from their previously recorded decisions ; and I take this opportunity of acknowledging the readiness with which these gentlemen fell in with my suggestions in this matter, and also the promptness with which the schedules were completed and returned to Head Office, thus enabling every increase o! pension payable under the Act to be available to pensioners on the date fixed by the Legislature. Of the 15,790 pensioners on the roll when the Act was passed, 12,092 were already in receipt of the full pension. Of the remaining 3,698 who were being paid less than £26. all but 396 —namely. 3,302 —received increases totalling the £11,843 per annum already referred to. These 396 represent those pensioners whose pensions were reduced on account of income, and were not affected one way or the other by the amendment, with the exception of the limited number of some thirty married pensioners who, with husbands or wives (not on the roll) possessing homes exceeding in value the amount of the allowance — i.e., £340, will at the next succeeding renewal of their pensions suffer slight reductions if their positions remain unaltered; reductions, however, which will for the most part be made up by the increased pensions payable, as between the 1909 and 1910 Acts, to the said husbands or wives should they be admitted to the roll. An actual illustration of this class of case is as rollows :— Pension. Husband a pensioner ; wife's home. £390--Under 1909 Act . ..26 Under 1910 Acl .21 Decrease . . £2 Wife (since admitted) ; home. £390—Under 1909 Act .21 Under 1910 Act .24 Increase .. .. £3 Net gain to both pensioners . £ I The total of these reductions will not exceed £100. The annual increase to the appropriations for old-age pensions under this Act. in conjunction with the. Act of 1909, is estimated at £26,000, made up as follows : — „ Actual increase during 1910 under 1909 Act 9,500 Actual increase under 1910 Act .. .. .. .. 11.800 Estimated increase on new pensions for twelve months (on basis of figures foT three months ended 31st March, 1911) .. 4,700 £26.000 Pensions in Force. The number of pensioners on the roll on the 31st March, including 684 Maoris, was 16.020. being an increase of 700 on the figures of the previous year, thus : — European. .Maori. Total. New pensions granted 2,320 79 2,399 Deduct deaths - . 1,347 76 Deduct cancellations .. 263 13 1,699 Increase.. 700 The net annual increase of pensioners during the past six years has been as follows :— 1905-6 812 j 1908-9 .827 1906-7 675 i 1909-10 ..924 1907-8 .. .. 312 1910-11 .700 The anticipation of last year that the percentage of pensioners to the population eligible by age and residence would show a further increase has not been realized, the said percentage remaining at 36 per cent. This would tend to show that, so far, the effect of the amendments of 1909 and 1910 has been not so much to introduce a new class of pensioner as to increase the benefits to those who were already eligible ; in fact, it may be stated that of the new pensioners admitted since the 1909 Act was passed— i.e., over a period of fifteen months—only thirty-four represent applicants who were ineligible

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on the score of property under the Act. as it stood in 1908. The, increase of 700 pensioners for the year may therefore be said to bo -.t. normal increase — i.e., one bearing a relation in equal proportion to the increase in the population. The following table shows the percentages from 1906 onwards of the European pensioners to (a) The population eligible by age, and (b) the population eligible by age and residence : —

The increases in the percentages in 1909 and 1910 may both be attributed to the liberalizing provisions of the 1908 Amendment Act. Of the total number of pensioners, 13,936, or 87 per cent, of the whole, were in receipt of the full pension, leaving only 13 per cent, drawing less than £26 per annum. The percentage drawing the full pension at the end of the previous year was 77 per cent., the marked increase this year being due to the benefits provided by last year's Act. The following table shows the percentages of those drawing full pensions to the total pensioners from the date the pension was increased to 10s. a week :■ — At 31st March. Total Pensioners. Full Pensions. Per Cent. 1905 11,770 9,200 78 1906 12,582 10,398 82 1907 13.257 10,653 80 1908 13,569 10,774 79 1909 14,396 11,340 78 I'.ilit 15,320 11,827 77 1911 .. 16,020 13,936 87 Table II of the appendix sets out the number payable at each rate of pension at the end of the past year. Of the 7,487 pensioners who were admitted to the roll in the first three months of the Act. 1,629 now only remain. The figures of the past few years show a decided increase in the number of these who have dropped out during the past year through death, the percentage of deaths in this section of pensioners reaching 14 per cent., whereas in each of the preceding three years it was but 12 per cent. These percentages are high, but they are not surprising when it is remembered that the association of this group with the Department has extended to a period of upwards of twelve years. The total deaths of pensioners throughout the year number 1,423, and the percentage of these to the total number of pensioners who have passed through the books in the same period is only 8 per cent. Table 111 of the appendix shows the percentages still remaining on the roll of the various groups admitted year by year since the scheme came into force. The pensioners of an advanced age continue to bear a good proportion of the whole, there being at the end of the year no less than 117 of the age of ninety and upwards. Fourteen were ninety-five and over, and there, were two centenarians. Table IV of the appendix contains details of all pensioners at the various ages. The distribution of the pensioners, European and Maori, in the various districts throughout the Dominion, together with the annual amount payable in these districts, is embodied in Table I of the appendix. Of the total number of pensioners admitted to the roll since the Act came into operation— i.e., 32.433—5,889 were single, 14,957 married, and 11,587 widowed. There weTe at the end of the year 1.522 married couples in receipt of the pension. New Claims. The total number of claims lodged during the year was 2,963, an increase of seventy-one on the number filed during the previous year. These, with the 777 claims awaiting investigation at the seventy-three agencies of the office throughout the Dominion on the 31st March. 1910. tnade a total of 3,740 dealt with, which were accounted for as follows :■ (Wanted .. 2,399 Rejected (including deaths, withdrawals, &c.) .. 669 • Being investigated on 31st March. 1911 ... .. 672 3.740 The new pensioners include seventy-nine members oi the Native race. Of the remainder, all but I I'd- i.e.. 2,200 —are of British extraction, including eighty-five whites born in New Zealand. The

\i 31 si March. (n.) European (6.) European PopuPopulation eligible lation eligible by by Age. Age and Residence. European Pension.!-. Percentage to («). Percentage to (6). * - J_ 1906 1907 .. 1908 . . 1909 1910 1911 40,788 37,367 42,337 38,611 43,371 39,336 44,562 40,176 44,838 40,238 46,586 41,556 11,915 12,597 12,912 13,705 14,626 15,336 29 29 29 30 32 32 31 32 32 34 36 36

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following table shows the proportion of British and New Zealand born applicants admitted to the roll since the first New-Zealander was granted a pension in 1904 : — Year ended Pension* British- New-Zealand- Mluvr j31st March granted. born. born (Whiten). Maulu, - 1904 .. .. .. .. .. 1,063 958 1 26 1905 .. .. .. .. .. 1,210 1,106 2 30 1906 .. .. .. .. .. 2,075 1,833 10 125 1907 .. .. .. .. .. 2,031 1,814 16 88 1908 .. .. .. .. .. 1,740 1,556 23 80 1909 .. .. .. .. .. 2,113 1,916 52 110 1910 .. .. .. .. .. 2,304 2,109 66 90 1911 .. .. .. .. .. 2,399 2,200 85 79 Total 255 One hundred and ninety of last year's new pensioners represent applicants who were previously on the roll, and struck oS for some reason or other. The total claims lodged since the Act came into operation on the 1st January, 1899, now uumber 12,271. Of these, 32,433 have been established as pensions, and 49 per cent, of the latter are still on the books. A large proportion of the applicants are still unable to furnish any proof of age, and, as indicating the extent of the assistance rendered to these in proving their eligibility, it may be mentioned that in 810 separate cases during the year, out of the 2,963 who applied, inquiries were made by Head Office for proof of age in all quarters of the globe. Of these, 502 were found to be eligible, while no less than 114 were proved to be short of the pension-age. In 116 cases no evidence was obtainable, and the remaining seventy-eight represent cases in which replies are awaited from outside the Dominion. Of the sixty-nine cases in which the searches vhtv not complete at the date of my last annual report, twenty-seven were found to be of the required age and five not, while no evidence could be traced in the other thirty-seven. In addition, searches were instituted by Head Office for verification of date of arrival in 489 cases, four of which were proved to be ineligible. In connection with those cases where. after every known source of information has been exhausted, no evidence of age is forthcoming, it may be. stated that they are submitted without further delay to the Magistrate, who has power by law to dispense with documentary evidence and grant a pension, if from the appearance of the applicant he is satisfied that the pension-age has been reached. In cases of advanced age, where no evidence is available at the date of application, the investigation by the Magistrate proceeds without awaiting the result of any search for age that may be deemed necessary. The following table shows the proportion of applicants on whose behalf proof of age has been sought by Head Office during the past five years, together with the number proved to be under the required age : — Year ended New Searches Proved to be 31st March. Claims. for Age. under Age. 1907 .. .. .. . . .. .. 2,577 672 229 1908 .. . . . . . . .. .. 2,327 639 144 1909 .. .. .. 2,834 812 157 1910 .. .. 2,892 874 142 1911 .. .. .. . . . . . . 2,963 810 114 It is interesting to note, with regard to the new participants, that a larger proportion is now being admitted immediately the pension-age is reached than formerly. During last year the number of these was 838, out of a total of 2.320 whites. The figures for the past five years are as follows :—- Year ended New Pensioners Admitted at 31et March. (European). Age 65. 1907 1,942 550 1908 .. .. .. .. .. .. .. 1,660 538 1909 .. .. .. .. .. .. .. 2,003 582 1910 .. .. .. .. .. .. .. 2,214 658 1911 .. .. .. .. ... .. .. 2,320 838 Full particulars regarding the claims made in each district, and how dealt will), are embodied in Table V of the appendix. Tables VI and VII contain particulars relating to the nationality, sex, and conjugal condition of the new pensioners. The number of new pensioners who were admitted during the year under the provisions of section 6 of the Amendment Act of 1908, whereby the Magistrate is empowered to exempt earnings during the twelve months preceding the date of application, was 163. The total number of pensioners who have benefited by this section since it became law is 345. Annual Payments. The gross payments made on account of pensions during the year totalled £383,392 IDs. 8d.. being an increase on the figures of the previous year of £20,896 19s. 8d. After deducting the sum of £653 2s. 8d.. representing overpayments of pension refunded, and making allowance for payments held over from the previous year on account of some informality, the net charge against the Consolidated Fund stands at £382,791 11s. Id., to which has been applied a credh of £16,758 9s. 8d., being revenue from the national-endowment lands.

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The total revenue from the endowment lands credited to old-age pensions is £36.901 2k. 3d.. »* follows : — £ s. d. 1910 20,142 12 7 1911 .. .. .. .. .. .. .. 16,758 9 8 £36,901 2 3 A comparative statement, .showing the variation in the annual payments year by year, is embodied in Table IX of the appendix. The grand total now paid in pensions since 1898 has reached the sum of £3,150,404. The distribution of last year's payments in the various parts of the Dominion is indicated in the following table, which is immediately followed by a table showing the cost per head of the population (exclusive of Maoris) in each year since the Act came into operation : — Postal District. Number. £ Am ° unt^ Auckland .. .. .. . . .. 39,219 79,770 18 7 Thames .. .. .. .. .. 6,608 13,722 2 6 Gisborn, .. 1,429 2,761 16 8 Napier .. .. .. .. . . 6,972 14,333 18 2 New Plymouth .. .. .. .. 3,343 6,745 9 3 Wanganui .. . . .. . . .. 5,858 12,255 I • 5 Wellington .. .. .. .. .. 19,646 40,21 J 8 7 Nelson .. .. .. .. .. 3,742 7,796 10 6 Blenheim .. .. .. .. .. 2,252 4,634 13 1 Cliristrhurch .. .. .. .. .. 31,044 f>3.893 14 9 Timarn .. .. . . . . . . 7,333 14,985 10 5 Greymoiith .. .. .. .. .. 6,349 13,280 J 2 Hokitikii .. .. .. .. .. 6,473 13,742 15 8 Westport .. .. .. .. .. 3,373 7,031 4 9 Oamaru .. .. .. .. .. 3,737 7,700 15 11 Dunedin . . .. .. .. .. 27,965 56,867 15 6 Invcrcargill .. .. .. .. .. 11,516 23,658 13 11 Totals .. .. . .. 186,857 £383.392 10 H Gross Payments D . . Cost per on Account of Po *" 1 *?™ Head of Pensions. *V™ o[ Population. £ * ear s. a. Three months ended 31st March, 1899 (at £18) 3,124 746,676 0 1 Year ended 31st March, 1900 fat £18) ... L57,34y 758,617 I I 1901 „ ... 197,292 772,719 5 1 1902 „ ... 207,468 789,994 5 8 1903 „ ... 210,140 814,842 5 2 1904 „ ... 203,164 838,954 i 10 1905 ,. ... 195,475 864,971 1 6 1906 (at £18,and E26|... 254,367 889,968 5 8 1907 iat 626) ... 314,184 913,873 6 10 1908 „ ... 325,199 937,587 6 11 1909 „ ... 336,760 968,313 6 I] 1910 „ ... 332,496 987,480 7 4 1911 „ ... 383,393 1,008,407 7 7 Total ... ... ... W. 150,404 Recoveries. The amount recovered and paid to the credit of the Public Account during the year totalled £653 2s. 8d., a somewhat larger sum than that obtained for several years. Included in this total are sums collected, among other sources, from the executors of the estates of deceased pensioners : and the figures only go to show that, however careful the administration may be in obtaining for the information of Magistrates the fullest particulars possible regarding the financial position of applicants, there are loopholes whereby those people, who feel that to resort to subterfuge to defraud the State is not altogether dishonourable, can aud do defeat the objects of the Act. Happily, the proportion o) these is small compared to the ever-increasing army of those whose circumstances during early and middle life have been barely flourishing enough to allow of provision being made for a rainy day, and who find the 10s. a week provided by the State as a reward for their labours a real benefit in their declining days. Witli the knowledge that any transgression will sooner or later be brought to account, this class of pensioner can be expected to disappear altogether. As examples of the cases detected during the past year by the system of check in operation in the Department, the following may be mentioned : — (a.) Bank account of £400 not disclosed, and not traced when pension applied for by reason of being in another name. Refund of £65 obtained from husband and wife. (i.) Land. £234. not disclosed over a period of eight years. Refund of £105 obtained when land sold.

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(c.) £200 lent on mortgage not disclosed when pension applied for. Refund of £51 obtained from nxecutor of pensioner's estate. (d.) Receipt of insurance money. £202. not disclosed at the proper time. Refund of £43 by husband and wife. (c.) Land sold, and proceeds, £360, invested in a private company. Not disclosed when pension applied for. and refund of £53 obtained from husband and wife. (/.) Bank account of £200 in name of daughter not disclosed. Refund from husband and wife. £41 The following table shows the amounts recovered in each year since iB9K ; C s. d. Three months ended 31st March. 1899 .. Nil. Year ended 31st March, 1900 5 15 0 1901 . . 63 18 4 1902 .. 127 1 11 1903 .. 1,039 11 1 1904 . . . 2,349 14 7 1905 .. 1,526 10 9 1906 .. 405 11 0 1907 357 16 8 1908 .. 163 0 s 1909 . . 227 14 7 1910 319 11 '.i 1911 653 2 8 Total . . . . £7.259 9 0 Cost of Administration. The cost of administration during the year was £3,802 14s. 10d., the percentage of this uuttt no the gross payments on account of pensions heiny 0-99 per cent. The details are as follows : £ s. d. Salaries .. .. 3,219 8 4 Lodging-allowances .. I*2o Non-permanent Postmasters, for paying pensions . 275 19 6 Fees for certificates of acre .. .. 37 3 9 Interpreters' fees 13 7 9 Travelling-expenses 58 13 6 Miscellaneous 15000 £3,802 14 10 The amount paid for administering the Act since it oame into operation is as follows :— £ Three months ended 31st March. 1899 510 Year ended 31st March. 1900 2,360 1901 2,415 19(12 .. .. 2,535 1903 3,805 1904 3,655 1905 3,936 1906 4,758 1907 5,250 1908 . .. 5.766 1909 9,098 1910 3,290 1911 3,803 Total .. .. .. £51,181 The percentage of the total cost of administration to the gross payments since 1898—namely. £3,150,404--is 1-62 per cent., as against 1-8 per cent, at the end of 1909. and 1-71 per cent, at the end oM9]O. Forfeited Instalments. The instalments due last year and remaining unpaid at the 31st March amounted to £1,388 136' Of this amount, £1,305 13s. represents absolutely forfeited instalments on which there is no further claim, the balance of £83 being instalments the payment of which is in abeyance.

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The absolutely forfeited instalments in each month are as follows ; 1910. £ s. d. April 104 16 8 Mar 114 19 :! June 114 8 8 July.. 117 15 0 August 113 10 11 September 118 11 9 October .. 116 3 6 November .. 86 9 6 December 103 12 7 1911. January 119 U 10 February 116 12 0 March ' 79 12 5 £1,305 13 0 The instalments not collected within the time allowed by law, but subsequently specially authorized and paid dur?ng the year, numbered 890, representing a total of £1.630. The absolutely forfeited instalments for the past six years are as follows : £ 1906 1,330 1607 1,363 1908 .. 1,199 1909 .. 1,330 1910 938 1911 1.305 Homes am. Hospitals, The amount paid to the controlling bodies of the various homes and hospitals during the year totalled £21,213 9s. 4d., an increase of £1,264 on the amount paid in the previous year. £1,260 6s. sd. of the total represents the charge made for the medical treatment of pensioners in hospitals. The number of pensioners paying for maintenance at the end of the year was 811, being an increase of eighteen on the number at the end of last year. Full particulars regarding these payments, including the amount allowed to pensioners out of each month's instalment, appear in Table X of the appendix. The amounts paid in this direction during the past six years, and the number of pensioners being maintained at the end of each year. are as follows :— „ , , J Number of „ Amount paid. Pensioners at Xear - £ End of Year. 1906 . . 14,350 616 1907 . 16,121 637 1908 .. 16,991 645 1909 . . .. 17,973 71 I 1910 .. 19.919 793 1911 .. 21,213 811 The decrease in the annual expenditure on outdoor relief since the Old-age Pensions Act came into force in 1898 is indicated by the following table : — European Annual Cost of Cost per Head Year ended Population. Outdoor Relief. of Population. s. d. 31st March, 1899 ... ... ... 746,676 50,850 1 4f 1900 ... ... 758,617 41,790 I 1} 1901 ... ... ... 772,719 42,181 I 1 1902 ... .789,994 38,934 0 11$ 1903 ... ... ... 814,842 43,421 I Of 1904 ... ... ... 888,954 42,618 1 0J 1905 ... ... 864,971 40,799 0 114; 1906 ... ... ... 889,968 39,547 0 10* 1907 ... ... ... 913,873 38,305 0 10 1903 ... ... 937,587 33,998 0 8J 1909 ... ... 968,313 37,537 0 9* 1910 ... ... ... 987,480 38,988 0 9* 1911 ... ... ... (figures not available). Mental Hospitals. The number of old-age pensioners committed to the mental hospitals of the Dominion during the year was ninety-six, the percentage to the total number of pensioners whose names appeared on the roll during the same period— i.e., 17,719 —being 0-54 per cent. The instalments paid to the Mental Hospital Department on account of these totalled £1.105 9s. 6d.. and the number still being maintained at the end of the year was sixty-eight.

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Wealth of Pensioners. The following particulars relate to the amount of accumulated property owned by the 16,020 pensioners who were on the roll at the end of the year, and by the husbands and wives of these who were themselves not pensioners :— Owned by pensioners— a Homes (including furniture and personal efiects) . . . . . . 593,132 Land (freehold or otherwise not used as home) .. .. .. 102,508 Cash.. .. .. .. .. .. .. .. 79,851 Shares, stock, implements. &<■. .. .. . . . . . . 18,456 793,947 Less mortgages on this property .. .. .. .. 122,677 Total net property owned by pensioners .. . . . . 671.270 Owned by husbands or wives of pensioners £ Homes .. .. .. .. .. .. 134,091 Land and other property . . . . . . . . 35,090 Cash . . .. .'. .. .. .. .. 15,858 185,039 Ijfss mortgages on this property .. . . . . 38,173 Total net property owned by husbands or wives of pensioners (not themselves pensioners) .. .. 146.86H Grand total .. .. .. .. .. £818,136 The total income earned by these pensioners, exclusive of the amount exempted in terms of the 1908 Amendment Act by reason of the loss of employment (already referred to under the heading of '' New Claims "), was £118,520, and by their husbands or wives (not themselves pensioners), £28,655. The average amount of income earned by each pensioner was £7 8s.. and the average amount of property held, after the deduction of mortgages, £41 18s. On comparing these figures with the averages taken out in the past, and set out hereunder, it will be seen that the average income is decreasing, but that the average amount of property has increased considerably. This latter is duo to the larger exemption from the home, which is now £340. instead of C150 as previously. Average Income Average Amount y e • earned of Property hel<) per Pensioner. per Pensioner. £ s. d. £ ». d. 1906 .. .. .. .. .. ..840 28 12 0 1S07 .. .. .. .. .. ..850 32 16 0 1E08 .. .. .. .. .. ..800 34 13 0 1911 .. .. .. .. .. ..780 41 18 0 The following table shows the number of pensioners who occupy homes of their own, together with the value of such homes. The values quoted are the capital values, without the deduction of any mortgage owing. Those quoted under the heading " Under £100 " include a number of cases where furniture only is owned :■ —

Old-age Pensions in other Countries. It is interesting to note the world-wide attention that is now given to the question of old-age pensions, closely allied with which are the various schemes, partial and otherwise, of old-age insurance and annuities in operation in other countries. From time immemorial it has been recognized by communities that the aged should be cared for, the provision taking one form or the other ; but it was not until the seventeenth century that the question first received legislative consideration, France adopting a partial contributory scheme for pensioning seamen in 1681. The nineteenth century, however, has been the chief period of activity, practically the whole of the European countries having discussed, if they have not actually introduced, some form of provision for the aged. In 1850 Belgium adopted a scheme for the organization of a superannuation fund, being followed closely by France in the same year with a similar measure. Neither of these provisions, however, met with any success. Germany introduced in 1889 an old-age and invalidity insurance law ; and Denmark brought into operation in 1891 the first non-contributory scheme of pensions. Then followed New Zealand, in 1898; Belgium and New South Wales, in 1900; and Victoria, in 1901—all with non-

PeasioneiN. lumber in North Island rumher in South Island Total Under "^ £l0 °- £200. 1,871 477 1 389 2,365 3.260 2.842 £201 £301 ; £401 to to to £300. £400. £500. J I ! 257 109 62 408 203 100 ' j . 665 312 162 £501 to £600. Over ' £600. Total. 11 32 26 37 2,813 4,534 43 63 7.347 I i I .1

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contributory systems. Italy adopted a partial contributory scheme in 1898, as also did Austria in 1906. The year 1908 saw England and Canada passing respectively non-contributory and annuity measures, the several State systems in operation in Australia being merged into a general old-age and invalidity law for the whole Commonwealth in the same year. [Note. —The latest figures available indicate that the cost of old-age and invalid pensions in the Commonwealth amounts to £2.085,000 annually. There were on 30th June, 1911, 76.089 old-age and 7,319 invalid pensioners.] Up to 1898 three attempts had been made to get a compulsory Old-age Insurance Bill through the Swedish Parliament, but without avail. In 1900 the Swiss Government passed a compulsory scheme of national annuities, hut the people of tin- country, by referendum, refused to accept it. In more recent years the Legislatures of Austria (in 1908) and France (in 1909) have had under their consideration general old-age pension schemes ; while in Russia.. Holland, and Norway, the question has been investigated by Commissions. Within the past few months the Netherland Government has submitted to Parliament a Customs Bill with the object of providing 10,000,000 florins. 9.000.000 of which it is proposed to reserve for old-age pensions ; and more recently an Invalidity Insurance Bill, with provision for pensions to septuagenarians. Tho Italian Government has also introduced a Bill providing for a State life-insurance monopoly, the revenue from which is to be utilized for old-age and invalidity pensions. So far, no American State has provided for any scheme of old-age pension or insurance, although various States and numerous industrial and railroad companies have made provision for the superannuation of their employees. The Legislatures of Illinois and Massachusetts have, however, appointed Commissions to investigate the question, the former in 1905 and the latter in 1908. both without result. The report of the Massachusetts Commission, published in 1910, is a voluminous one, running into over four hundred pages of closely printed matter, and contains a fund of information relating to the schemes of the world. To it lam indebted for the copy of a Bill (reproduced hereunder) introduced into the United States House of Representatives in December, 1909. by Congressman Wilson, of Pennsylvania, which is unique as an old-age-pension measure, but which in its genera! principles practically follows the lines of our own Act. It is explained that its form is due to the fact that doubt has been expressed as to the right of the Federal Government of America to grant old-age pensions, seeing that its written constitution does not specifically provide therefor ; but as the said constitution gives power "to raise and support|armies." the Bill is based on that principle of constitutional law. It leads as follows :— "An Act to organizk ax Army Corps, prescribe Qualifications for Enlistment therein. define the Duties and fix the Compensation ami Term of Enlistment of Privates. and for other purposes. " Be it enacted —That immediately after the passage of this Act, an army corps shall be organized in the Department of War under the direction of the President, to be known as the Old Age Home Guard of the United States Army. " Section 2. The Old Age Home Guard of the United States shall be composed of persons not less than sixty-five years of age. " Section 3. Any person who is sixty-five years of age, or upwards, and who has been a resident of the United States twenty-five consecutive years, and a citizen of the United States fifteen consecutive years next preceding the date of application, and who is not possessed of property amounting to more than fifteen hundred dollars [£300] in value, free of all incumbrances, or an income of more than two hundred and forty dollars [£48] per annum, and who has not sequestered or otherwise disposed of property or income for the purpose of qualifying for enlistment as hereinafter provided, may make application, in writing, to the Secretary of War for enlistment in the Old Age Home Guard of the United States Army, and it shall be the duty of the Secretary of War to enlist and enrol such applicant for the term of his or her life as a private in the Old Age Home Guard of the United States Army without regard to the physical condition of the applicant, provided that persons related as husband and wife shall not both be eligible for enlistment, enrolment, and service therein at the same time ; and in case of dispute as to whether husband or wife shall be enlisted and enrolled, as herein provided, the question shall be decided by the Secretary of War, by and with the approval of the President. " Section 4. The pay of a private in the Old Age Home Guard of the United States Army Bhall be one hundred and twenty dollars [£24] per annum, to be paid in quarterly instalments, as pensions are now by law paid, provided that ten dollars [£2] per annum shall be deducted from the pay of each private, and retained in the Treasury of the United States, for every one hundred dollars' [£20] worth of property in excess of three hundred dollars [£60]. and for every ten dollars [£2] per annum income in excess of one hundred and twenty dollars [£24], possessed by such private. " Section 5. Arms and ammunition shall be furnished to privates in the Old Age Home Guard of the United States Army at the discretion of the Secretary of War ; but no sustenance shall be furnished to them except the pay herein provided. " Section 6. No private, or applicant for enlistment as private, shall be required to leave his or her home for the purpose of enlistment, enrolment, or service in the Old Age Home Guard of the United States Army ; nor shall they be required to assemble, drill, or perform any of the other manoeuvres, nor be subject to any of the regulations of the United States Army, except as herein provided. "Section 7. Privates in the Old Age Home Guard of the United States Army shall be required to report annually, in writing, to the Secretary of War. on blanks furnished by him for the purpose. the conditions of military and patriotic sentiment in the community where such private lives ; bin no private shall be discharged, disciplined, or otherwise punished tor failure to make such report. "Section 8. The number of persons enlisted in the Old Age Home Guard of the United States Army shall be in addition to thc> number of officers and privates now required by law in the United States Army. ' ■;',,; " Section 9. Ml Acts and parts of Acts inconsistent with the provisions of this Act are hereby repealed." I). Kohertsox. Commissioner.

a—f. 9.

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10

APPENDIX. TABLES EMBODIED IN APPENDIX. Tuble I, Number and annual value of pensions (in districts). 11. Pensions at each rate. ~ 111. Percentage of pensions granted in each year now in force. „ TV. Ages of European pensioners. „ V. Claims received and how disposed of (in districts). „ VI. Nationalities of pensioners admitted during 1910-11. „ VII. Sex and conjugal condition of pensioners admitted during 1910-11. .. VIII. Pensions granted, deaths, and cancellations j also annual liability and average pension. „ IX. Pensions in force and payments in each year. „ X. Amounts paid to homes and hospitals.

Table I.—Number and Annual Value of Pensions granted to Europeans and Maoris in Force on the 31st March, 1911.

KuropeaiiR. Maoris. Annual Value. £ North Island ... ... ... 6,594 616 180,356 South Island ..'. ... 8,742 69 222,664 15,33C, 684 6403,020

Number. Pletriot. : Europeans. ! Maoris. Annual Value. Number. ,, . Annual Di8tri0t - Value. Europeans. Maoris. _ _. Auckland ... 1,913 21 Coromandel ... 94 22 Dargavilie 94 19 Hamilton ... 332 56 Kaitaia . . 24 57 Mangonui ... 15 14 Maungaturoto ... 37 fi Raglan ... 17 11 Rawene ... 27 47 Rotorua 24 58 Russell ... 59 78 Taupo ... 19 10 Warkworth ... 72 2 Whangarei ... 182 6 Whangaroa ... 18 32 Thames ... 269 11 Opotiki ... 24 15 Paeroa ... 152 22 Tauranga ... 34 36 Whakatane ... 8 24 Gisborne ... 96 9 Port Awanui ... 6 10 Napier ... 385 2 Dannevirke .. L48 VVaipawa ... 67 2 Wairoa ... 16 12 New Plyinouth 226 10 Stratford 55 Wanganui 241 1 Eltham ... 23 Hawera ... 88 I Marton ... L16 1 Patea ... 37 Wellington ... 883 5 Carter ton ... 106 1 Chatham Islands 4 1 Feilding ... 129 2 - £ 47,978 2,941 2,860 9,804 1,979 748 1,059 682 1,844 1,996 3,353 734 1,834 4,754 1,247 7,187 999 4,399 1,763 768 2,571 331 9,814 3,716 1.755 589 5,870 1,357 6,228 592 2,268 2,984 ' 932 22,441 2,740 122 3,198 Brought forward 6,043 603 166,437 Masterton ... 168 1 4,175 Otaki ... 76 6 2,049 Pahiatua 63 ... 1,489 Palmerston N. 244 5 6,206 Nelson ... 236 ... 6,037 Motueka .. 83 ... 2,076 Blenheim 186 3 4,767 Havelock 9 ... 234 Christchureli 1,925 2 48,459 Akaroa 33 2 869 Amberley ... 20 ... 479 Ash burton .. 311 ... 7,924 Culverden ... 11 ... 286 Kaiapoi ... 325 8 8,453 Kaikoura ... 19 4 575 Timaru ... 278 ... 7,033 Pairlie . 19 •.. 486 Geraldine ... 202 12 5,428 Waimate ... 131 1 3,340 Greymontli ... 128 ... 10,909 Reefton ... 142 ... 3,653 Hokitika ... 530 1 13,655 Westport ... 232 2 5,945 Oaniavu ... 310 2 7,839 Dunedin ... 1.-326 -1 38,322 Balcliitha ... 150 2 3,881 Clyde ... 122 .. 3,128 Lawrence ... 189 ... 4,829 Milton ... 158 1 3,954 Naseby ... L04 ... 2,666 Falmerston 8. ... 53 ... 1,328 Waikouaiti ... 44 3 1,148 Invercargill ... 551 7 14,006 Gore... .. 160 ... 4,110 Queenstown ... 117 ... 2,932 Riverton ... 138 17 3,913 Carried forward 6.043 603 166,437 Totals 15,336 684 +03.020

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Table II.—Number of Pensions at each Rate at End of Year 1910-11.

Tablm III Number of Pensions granted in each Financial Year, together with the Ntmbkh of such Pensions in Force on the 31st March, 1911. Number of Percentage of Pensions euoh Pensions Pensions in granted in still in Force Force each Year. on 31st March, to Pensions 1911. granted. Year ended 31st March, 1899 ... ... 7,487 L.629 22 1900 4,699 1,161 25 1901 ... ... 2,227 728 33 1902 ... ... 1,694 631 37 1903 ... ... 1,391 618 44 1904 1,063 558 53 1905 ... ... 1,210 695 58 1906 ... ... 1,269 61 1907 ... ... 2,031 1,382 68 1908 1,740 1,294 74 1909 ... ... 2,113 1,721 81 1910 ... ... 2,304 2,013 87 1911 ... ... 2,399 2,321 97 Totals •■■ ••■ ••■ 32,433 l«,020

Tablk IV. —Ages of European Pensioners on 31st March, 1911. Number. Number. Number. \t aee 65 ... ■ 408 At age 78 ... ... 845 At age 91 ... 34 66 ... ...1,023 „ 79 ... .. 602 „ 92 ... ... 9 67 .. ... 799 „ 80 ... ... 499 „ 93 ... ... 12 68 ... ... 948 „ 81 ... 374 „ 94 ... ... 6 69 ... ...1,020 „ 82 ... ... 298 ., 95 ... ... 7 70 1,078 „ 83 ... ... 212 ,. 96 ... ... 2 71 ... . 1,037 „ 84 188 „ 97 ... ... 1 72 954 „ 85 139 „ 98 ... ... 1 73 ... 927 ,. 86 106 „ 99 1 74 ... 886 „ 87 ... ... 86 ., 100 1 75 ... ... 845 ,. 88 ... ... 55 .. 103 ... ... 1 76 ... 904 „ 89 ... ... 38 77 .. 948 „ 90 ... ... 42 Totai ... 15,336

dumber. Rate. Liability. Number. Rate. Liability. 13,936 285 265 185 158 204 159 136 136 72 64 72 57 £ 26 25 24 23 22 21 20 19 18 17 16 15 14 I £ £ 862,886 56 13 7,125 50 L2 6,360 33 11 1,255 36 10 3,476 33 9 4,284 26 8 3,180 15 7 2,584 15 6 2,448 9 5 1,224 II 4 1,024 4 8 1,080 3 2 798 1 1 fc 715 600 363 360 297 208 105 90 45 44 12 6 1 16,020 403,020 Average pension. £25 3s. 2d.

Table V.—Claims received and how disposed of during Year 1910-11.

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District. Total ,-,. • For Financial Year endine „, . Numberof Clalmb 31st March, 1911. C]& >™ "? awaiting awaiting Uaims Investiga- - Investigaeoelv A ed , tion on _, . _, . tion on since Act 31stMar C| ■ Claims Claims 3 i st Mar., came into 1910 feoeivea _ esta- rejected, 19n Force. bushed. &e. I Auckland ... Coromandel Dargaville ... Hamilton ... Kaitaia Mangonui ... Maungaturoto .,,. Raglan Rawene Rotorua Russell Taupo Warkworth Whangarei... Whangaroa Thames Opotiki Paeroa Taurauga ... Whakatanc Gisborne ... Port Awauui Napier Dannevirke Waipawa ... Wairoa New Plymouth Stratford Wanganui ... Eltham Hawera Marton Patea Wellington... Carterton ... Feilding Masterton ... Otaki ... Pahiatua ... Palmerston North ... Nelson Motueka ... Blenheim ... Havelock ... Christchurch Akaroa Amberley ... Ashburton ... Culverden ... Kaiapoi Kaikoura ... Timaru Fairlie ;Geraldine ... . Waimate ... .Greymouth ; Reef ton Hokitika ... Westport ... Oamaru Dunedin Balclucha ... 4,527 37 402 315 105 19 373 15 16 9 16 6 ... 360 2 28 17 5 8 767 21 60 52 14 15 139 20 11 12 7 12 189 3 2 4 ... 1 118 2 6 6 1 1 242 2 6 ' 2 2 4 345 L2 17 10 1 18 .296 6 19 14 8 3 407 lo 17 22 4 6 132 9 12 8 5 8 ... 259 3 16 15 3 1 547 11 29 33 3 4 .145 5 6 6 3 2 779 30 44 37 9 28 117 8 8 5 2 9 339 36 43 38 12 29 363 9 12 7 4 L0 ... 122 1 2 | 1 1 1 ... 402 14 23 16 3 18 295 ... 8 2 3 3 996 25 102 87 26 14 477 15 30 28 ! 10 7 119 4 14 7 2 9 270 1 3 4 714 19 47 39 15 12 147 4 17 15 5 1 634 29 44 41 10 22 ...82561 ■MS 6 13 8 3 8 354 5 21 23 4 5 ... 107 2 7 6 1 2 ... 2,102 7 240 150 85 12 311 14 21 21 5 9 300 10 28 28 3 7 416 9 30 23 i 10 i 6 192 6 11 14 2 1 157 2 15 14 2 1 582 1 62 53 9 1 731 6 35 31 3 7 232 7 14 14 2 5 484 9 38 31 3 13 29 ... . ... ... 4,120 69 ' 351 281 38 101 132 1 2 2, ... 1 ... 31 1 4 4 1 658 12 48 I 49 ! 2 9 28 ; * ... 3 3 780 7 41 35 6 7 68 1 5 5 ... 1 558 8 ! 69 60 7 10 ... 41 1 5 5 1 435 5 23 25 2 1 308 6 29 22 4 9 ... 1,125 17 55 45 19 8 406 4 ' 14 11 1 6 ... 1,386 23 : 65 57 j 10 21 712 9 33 : 22 7 13 752 15 47 33 15 14 ... 3,574 60 290 208 72 70 368 7 22 16 8 5 j ; I ; Carried forward ... 36,375 690 2,696 ' 2,157 I 605 I 624 690 2,696 2,157 605 624

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Table V.—Claims received and how disposed of during Year 1910-11— continued.

Table Vl.—Original Nationalities of Pensioners admitted during the Year ended the 31st March, 1911. Number. Number. Number. British (England) ... 1,089 British (Cape Colony) ... 1 Norwegian ... ... 13 (Ireland) ... 482 „ (Barbadoes) ... 1 Finn ... ... 1 (Scotland) ... 442 German ... ... 38 American (U.S.A.) ... 8 (New Zealand) 85 Swedish ... ... 18 Belgian ... ... 1 (Australia) ... 51 Danish ... ... 17 Bohemian ... ... 2 (Wales) ... 23 Italian ... ... 6 Chilian ... ... 1 (Channel Islands) 8 Austrian ... ... 4 Maori ... ... 79 (Canada) ... 16 Swiss ... ... 3 (Newfoundland) 2 French ... ... 8 2,399 These pensioners are now all British subjects, as required by law. » —

Table Vll.—Sex and Conjugal Condition of Pensioners who were admitted during the Year ended the 31st March, 1911. Sex. ■ Single. Married. Widowed. Totals. Males ... 341 712 314 1,367 Females ... 42 461 529 1,032 Totals ... 383 1,173 843 2,399

District. Distriot. Total For Financial Year ending . Number of Cla .' i ms 31st March, 1911. Cla ; ,nl6 r m ;™<, awaiting awaiting Claims Investiga-, - Investiga reoeived tton » n t , « since Act |3lBtMar Q| ; Claims Claims 31stMar came into 1910 ! id esta- rejected, Foroe. j Wished. &o. I I J , ! ! Brought forward ... Clyde ... Lawrence ... Milton Naseby Palmerston South ... Waikouaiti Invercargill Gore Queenstown Riverton ... Chatham Islands Helensville Otahuhu ... Te Aroha ... Port Chalmers ... 36,375 690: 2,696 ! 2,157 605 624 314 15 17 21 8 3 501 6 22 20 4 4 353 4 25 23 2 4 263 8 7 10 5 .160 1 14 8 3 4 95 1 9 6 2 2 1,631 21 ; 102 82 28 13 307 4 22 19 2 5 425 20 ! 27 30 8 9 16 1 ... ... ... 1 110 6 22 23 2 8 ... 462 ... (Agency closed.) 808 ... (Agency olosed.) 113 ... (Agency closed.) 338 ... (Agency closed.) !~ —: ~: —~t~ —H — ~~ Totals ... 42,271 777 2,963 2,399 669 672 777 2,963 2,399 669 672

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Table VIII.—Number of Pensions granted since the Act came into Operation, with Number of Deaths and Cancellations, and Number in Force at End of each Year, together with Annual Liability and Average Pension.

Table IX. —Comparative Statement of Pensions in Force and Payments made in each Financial Year since the Act came into Operation.

Year ending 31st March. Number of Pensions granted. J Deaths. Cancellations. i In Foroe at End of Year. Annual Liability. Average Pension. 1899 ... 1900 . . 1901 ... 1902 ... 1903 ... 1904 ... 1905 ... 1906 ... 1907 1908 1909 1910 1911 ... 7,487 4,699 2,227 1,694 1,391 1,063 1,210 2,075 2,031 1,740 2,113 2,304 2,399 38 786 815 935 1,064 928 890 1,038 1,097 1,189 1,112 1,169 1,423 6 71 292 388 622 690 476 225 259 239 174 211 276 7,443 11,285 12,405 12,776 12,481 11,926 11,770 12,582 13,257 13,569 14,396 15,320 16,020 £ 127,319 193,718 211,965 217,192 211,594 200,915 199,081 313,018 326,084 333,340 353,343 374,699 403,020 £ s. d. 17 2 0 17 3 0 17 2 0 17 0 0 16 19 0 16 17 0 16 18 0 24 17 0 24 12 0 24 11 0 24 10 0 24 9 0 25 3 0 Totals ... I 32,433 12,484 3,929

Dale. Number of Pensions in Force. Payments to End of Financial Year. Payments. Pensions. Increase. Decrease. Increase. Decrease. t 31st March. 1899 ... 1900 ... 1901 ... i 1902 ... 1903 ... 1904 ... 1905 ... 1906 ... 1907 ... 1908 ... 1909 .. 1910 ... 1911 ... 7,443 11,285 12,405 12,776 12,481 11,926 11,770 12,582 13,257 13,569 14,396 15,320 16,020 £ 3,124 157,342 197,292 207,468 210,140 203,164 195,475 254,367 314,184 325,199 336,760 362,496 383,393 £ a 154,218 ... 3,842 39,950 ... 1,120 10,176 ... 371 2,672 ... ... 295 '6,976 ... 555 7,689 ... 156 58,892 ... 812 59,817 ... 675 11,015 ... 312 11,561 ... 827 25,736 ... 924 20,897 ... 700 Total .. 3.150,404

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Table X.—Number of Old-age Pensioners maintained in Homes and Hospitals on the 31st March, 1911, together with the Amounts paid to such Institutions during the Year.

* Pensioners transferred to Blenheim. ' Pensioners trmißferred to Westport. Note.—The hospitals included in the above list serve the purpose of old people's homes in the districts named. Approximate ( of t'<it>*f. — Preparation, uot tpveu : printing 11,900 copies), £12. By Authority : John Mackay, Government Printer, Wellington. 1911 I'rier lid

Location. o£i" = i.£"-c2 Amount handed tn Institution Payment*, Jo-go - Pensioners after institution. Vpsv 1910-11. g'Sa o-g , Deduction of SS-Ss Mnintenance. ___ igh°3a| i Wbangarei Auckland Thamu.Hamilton Gisborne Napier New Plymouth Wanganui Wellington Palmerston North Masterton Nelson Pioton Blenheim Christchuroh Ashburton Timaru WeBtport Charleston Reef ton Greymouth Hokitika Roes Kumara Oamaru Dunedin Inveroargill Riverton £ s. d. .. Old Men's Cottage Homo 281 14 0 ' 12 4s. per month. .. CostleyHome .. .. 2,613 10 6 108 6s. 6d. .. Ponsonby Home (Little Sisters) 817 15 0 38 8s. .. Veterans' Home 816 11 2 35 per week. .. Old Men's Home .. .. 538 17 4 15 5s. per month. ■244 16 6 10 4s. L77 10 (i 6 Is. per week. Refuge, Parke Island .. .. 694 8 6 25 7s. 4d. per month. . . Old Men's Home 181 19 2 16 10s. .. Jubilee Home .. 305 8 4 10 5s. .. Ohiro Home .. .. .. 653 14 6 22 2s. to 6s. „ .. Home for Aged Needy .. .. 726 4 5 27 7s. 7d. .. Home for Incurables .. 224 16 8 11 6s. .. No institution .. .. 36 13 5 Nil. .. SolwayHome 112 13 4 4 Nil. Alexandra Home .. 733 10 1 27 2s. per week. .. Hospital .. .. .. 22 5 11 ' Nil.* .. Old Men's Home .. 205 13 1 8 8s. 8d. per month. Jubilee Home .. .. 955 19 5 34 Is. per week. Samaritan Home .. .. 108 4 11 l 15s. lOd. permou. .. Nazareth House 793 1 10 32 5s. per month. .. Mount Magdala Home 26 0 0 1 Nil. .. Tuarangi Home .. .. 860 17 9 32 Is. per week. .. Old Men's Home .. 482 18 8 16 6s. 6d. per month. .. Old People's Home .. .. 544 1 3 21 8s. .. Hospital .. .. .. 57 14 1 , Nil.t 260 11 0 , 15 10s. per month. 817 8 4 i 29 10s. 602 2 4 j 20 10s. 194 13 10 7 13s. 4d. 497 15 0 22 13s. 4d. .. Victoria Home .. .. .551 7 9 23 6s. Benevolent Institution .. 1,785 17 7 67 2s. per week. .. Home for Aged Poor .. 1,128 11 8 47 13s.4d.permonth. .. Lome Farm .. 590 5 9 ■ 24 {gg'gd' .. No institution .. 57 14 8 Nil 19,953 2 11 765 Hospital Patients only .. 1,260 6 5 46 1 £21,213 9 l 811