SOCIAL SECURITY DEPARTMENT. REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1941.

Appendix to the Journals of the House of Representatives, 1941 Session I, H-09

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1941. NEW ZEALAND.

SOCIAL SECURITY DEPARTMENT. REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1941.

Presented to both Houses of the General Assembly pursuant to the Provisions of the Social Security Act, 1938.

This report deals with Part II of the Social Security Act only. Reports on the operation of Part 111 and Part IV of the Act will be submitted by the Health and Land and Income Tax Departments respectively.

REPORT.

To the Hon. the Minister op Social Security. g IR ____ Social Security Department, Wellington, 3rd July, 1941. I have the honour to submit for the information of Parliament the second annual report of the Social Security Department for the period Ist April, 1940, to 31st March, 1941. NEW LEGISLATION. During the year the undermentioned legislation affecting Social Security benefits was passed : — (а) Social Security Amendment Act, 1940. (б) Finance Act (No. 4), 1940, Part 11. The following is a brief summary of the effects of the new legislation : — Family benefit of 4s. a week is now payable for each child after the first child of any family, instead of after the second child as formerly. The Social Security Commission may now complete an investigation of a benefit application after the death of the applicant, and in its discretion may grant any amount accrued to the date of death for the benefit of the widow and children. Compassionate grants made by the Government or any employer on account of the death of the husband of an applicant may now be included in the income exemption of £500 allowed under section 10 (g) of the Social Security Act, 1938. The income of a widowed mother receiving an allotment of more than 2s. a day from one son in the armed forces is calculated at 2s. a day only. Where allotments are received from two or more sons the income is deemed to be 2s. a day or the aggregate of the allotments diminished by 2s. a day in respect of each son, whichever amount is the greater.

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BENEFITS. UNIVERSAL SUPERANNUATION. Superannuation benefits came into operation for the first time in New Zealand on the Ist April, J 940. This benefit is now paid to all citizens of the Dominion with the necessary residential qualifications who are sixty-five years of age and over, irrespective of their financial position. For the financial year ended 31st March, 1941, the rate of benefit was £10 per annum, and this rate will be increased by £2 10s. each year until 1968, when the full superannuation benefit of £78 per annum will be in operation.. The rate for the year commencing Ist April, 194-1, will therefore be £12 10s. per annum. From Ist April, 1940, to 31st March, 1941, a total of 40,724 claims was received. Of these, 38,938 were granted benefits, while 1,316 applications were rejected. The number in force as at 31st March, 1941, was 36,602, with an annual value of £366,020. The expenditure for the year amounted to £240,336. AGE-BENEFITS. At the end of the first year's operations of the Social Security Act —i.e., 31st March, 1940 —the number of age-benefits in force was 93,262, with an annual value of £6,859,420. By the 31st March, 1941, the number of benefits in force had increased by 4,344 to 97,606, with an annual value of £7,127,821. The total payments made for the financial year 1940-41 were £7,101,346, as against £6,517,899 for the previous year, an increase of £583,447. WIDOWS' BENEFITS. At 31st March, 1940, there were 10,174 widows' benefits in force with an annual value of £830,623. During the year the number of benefits increased by 395 to 10,569, with an annual value of £843,516. The total payments made for the financial year 1940-41 were £836,368, as against £785,952 for the preceding year, an increase of £50,416. ORPHANS' BENEFITS. At 31st March, 1940, the number of orphans' benefits in force was 330, with an annual value of £16,743. At the end of the present financial year the number had increased by 20 to 350, with an annual value of £17,888. The total payments made for the financial year 1940-41 were £17,713, as against £14,880 for the preceding year, an increase of £2,833. FAMILY BENEFITS. During the year the Social Security Act, 1938, was widened in its scope by extending family benefits to cover each child after the first child of a family, and this wider coverage has resulted in a considerable increase in the number of benefits in force. As at 31st March, 1940, there were 11,053 family benefits in force, with an annual value of £314,458. During the year an increase of 5,573 benefits occurred, and the figures at the 31st March, 1941, were 16,626 benefits in force, with an annual value of £485,337. The total payments made during the year amounted to £411,811, as against £252,562 for the preceding year, an increase of £159,249. INVALIDS' BENEFITS. At the end of March, 1940, there were 11,811 invalids' benefits in force, with an annual value of £1,005,116. This number had increased as at 31st March, 1.941, by 125 to a total of 11,936, with an. annual value of £998,792. The total payments made during the year amounted to £999,648, as against £942,196 for the preceding year, an increase of £57,452. Where any application for benefit or renewal of benefit is rejected on medical grounds there is a right of appeal against the decision of the Social Security Commission to an Appeal Board of three medical practitioners. There were 31 appeals outstanding at the end of March, 1940, and during the past year a further 296 appeals were received. Of these, 285 cases were dealt with, of which 118, or 41 per cent., were upheld, a further 152 cases were dismissed, and 15 were either withdrawn or struck out. The appeals outstanding as at 31st March, 1941, numbered 42. MINERS' BENEFITS. This class of benefit has shown a decrease of 57 during the year. At the end of March, 1940, there were 988 benefits in force, with an annual value of £90,179. As at 31st March, 1941, there were 931 current benefits, with an annual value of £85,394. The total payments made during the year amounted to £88,656, as against £92,653 for the preceding year, a decrease of £3,997. MAORI WAR BENEFITS. Maori War benefits are steadily decreasing as death removes one by one these veterans of the Maori Wars. The number in force at 31st March, 1940, has decreased during the year from 12 to 7, five deaths being recorded. The annual value as at 31st March, 1941, was £546, as against £936 at the end of March, 1940. The total payments during the year amounted to £744, as against £1,103 for the preceding year, a decrease of £359.

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UNEMPLOYMENT BENEFITS. The following figures show the number of applications for unemployment benefits received during the year ended 31st March, 1941, and the manner in which they were disposed of : —

As at 31st March, 1941, there were 1,735 males and 171 females in receipt of unemployment benefits, a decrease of 2,008 males and 139 females over the figures as at 31st March, 1940.

Statement showing for the Year ended 31st March, 1941, Duration of Unemployment for Males and Females according to Age-groups.

The above schedule discloses that nearly 42 per cent, of male beneficiaries had periods of unemployment of less than four weeks, while 39 per cent, were unemployed for periods varying from four to thirteen weeks. The largest group of female beneficiaries is covered by the 4-13 weeks group, being 43-4 per cent, of females who received benefit. In the age-grouping the largest number of persons is found in the group 30-39 years (inclusive) as regards males, while the largest group for females is 16-19 years (inclusive). Outside the four main centres this Department undertakes the activities of the State Placement Service, and as a condition precedent to the receipt of unemployment benefit it is obligatory on all applicants to register at and keep in touch with the State Placement Service so that the incentive to obtain employment is maintained and unemployment benefit is not continued for longer periods than are necessary. The total expenditure for the year amounted to £299,161, as against £434,497 for the preceding year, a decrease of £135,336. SICKNESS BENEFITS. The following figures show the number of applications for sickness benefits received during the year ended 31st March, 1941, and how tliey were disposed of—■

As at 31st March, 1941, there were 2,477 males and 975 females in receipt of sickness benefit, an increase of 560 males and 327 females over the figure at the end of March, 1940.

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Males. Females. Total. ( Persons granted benefit .. .. .. .. .. 21,720 1,191 22,911 Number of applications declined .. .. .. .. 10,199 1,010 11,209 Number of persons whose applications were declined, but who 557 958 1,515 were granted emergency benefits on the grounds of hardship Total applications .. .. .. .. .. 32,476 3,159 35,635

Years Years Years Years Years Years r r/ . fola Period of 1(5 to 19, 20 to 29 - 30 to 39 * 40 to 49> 50 to 59, 60 and over * Grand Unemployment. : Total. M. F. M. F. M. F. M. F. M. F. M. F. M. F. J .. ! Less than-4 weeks .. 207 163 2,656 164 2,790 35 1,953 26 1,927 20 251 .. 9,784 408 10,192 4 weeks but less than 229 246 2,264 222 2,274 57 1,960 55 1,991 52 406 5 9,124 637 9,761 13 weeks 13 weeks but less than 53 88 472 84 495 43 541 27 767 30 171 4 2,499 276 2,775 26 weeks 26 weeks to 52 weeks 17 23 256 40 289 32 346 19 928 30 114 3 1,950 147 2,097 (inclusive) Totals .. 506 520 5,648 510 5,848 167 4,800 127 5,613 132 942 12 23,357 1,468 24,825

Males. Females. Totals. Persons granted benefit .. .. .. .. .. 17,189 6,236 23,425 Number of applications declined .. .. .. .. 1,997 958 2,955 Number of persons whose applications were declined, but who were 186 309 495 granted emergency benefits on the grounds of hardship Total applications .. .. .. .. .. 19,372 7,503 26,875

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The following figures illustrate the sickness experience during the year:—-

Tho sickness beneficiaries who have been in receipt of benefit during the whole year represent sick persons with continuing incapacity but insufficiently so to warrant the granting of invalids' benefits. The total expenditure on sickness benefits during the year amounted to £279,581, as against £208,790 for the preceding year, an increase of £70,791. EMERGENCY BENEFITS. Under the provisions of section 58 of the Social Security Act, 1938, tho Social Security Commission has a discretionary power to grant special benefits on account of hardship to any person who by reason of age, or of physical or mental disability or for any other reason, is unable to earn a sufficient livelihood for himself and dependants, provided the applicant is not entitled to receive any other benefit under the Act. The Commission takes full advantage of this provision of tho law, and many cases of genuine hardship have in consequence been relieved. During the year 2,266 emergency benefits were granted. The total expenditure on emergency benefits during the year was £130,096, as against £86,711 for the preceding year, an increase of £43,385. FINANCE. Statement showing the Receipts and Payments of the Social Security Fund foe the Yeak ended 31st March, 1941. Receipts. Payments. £ Monetary benefits — £ £ Balance .. .. •• ■■ •• 523,901 Universal superannuation .. .. 240,336 £ Age .. .. .. 7,101,346 Social security registration fees .. 604,179 Widows .. .. .. .. 836,368 Social security charge on wages and other Orphans.. .. .. .. 17,713 income .. .. •• •• 10,109,577 Family .. .. .. .. 411,811 Penalties, fines, interest, and miscellaneous 54,067 Invalids .. .. .. .. 999,648 — 10,767,823 Miners .. .. .. .. 88,656 Grants from Conslidated Fund: Vote, " Social Maori War .. .. .. 744 Security" (Social Security Act, 1938, section 105 (c) ) 3,200,000 Unemployment .. .. .. 299,161 Sickness .. .. .. .. 279,581 Emergency . . .. .. 130,096 10,405,460 Hospital benefits, &c. — Maternity benefits .. .. 518,997 Hospital benefits .. .. 1,257,688 1,776,685 Administration expenses— Land and Income Tax Department .. 120,000 Health Department .. .. 15,634 Social Security Department (including . £12,497 for capital expenditure) .. 306,505 442,139 12,624,284 Balance .. .. .. .. 1,867,440 £14,491,724 £14,491,724

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The following figures illustrate the sickness experience during the year: —■ Cases of Sickness. Cases of Sickness. Period of Incapacity Period of Incapacity (Weeks). (Weeks). Males. Females. Males. Females. Sickness Experience. One .. .. 594 216 Thirty .. .. 73 33 Two .. .. 2,128 683 Thirty-one .. 77 31 Three .. .. 2,165 736 Thirty-two .. 62 34 Four .. .. 2,215 818 Thirty-three .. 73 33 Five .. .. 1,545 528 Thirty-four .. 43 17 Six .. .. 1,419 480 Thirty-five .. 50 14 Seven .. .. 1,146 425 Thirty-six .. 41 14 Eight .. .. 1,085 353 Thirty-seven .. 39 17 Nine . . .. 731 280 Thirty-eight .. 30 13 Ten . . . . 648 249 Thirty-nine .. 26 14 Eleven .. .. 563 207 Forty .. .. 22 18 Twelve .. .. 502 155 Forty-one .. 30 14 Thirteen . . .. 441 140 Forty-two .. 33 4 Fourteen .. .. 300 112 Forty-three .. 28 11 Fifteen .. .. 282 112 Forty-four ..19 7 Sixteen .. . . 266 80 Forty-five .. 14 11 Seventeen .. .. 245 65 Forty-six .. . . 17 4 Eighteen .. .. 213 60 Forty-seven . . 14 5 Nineteen .. .. 172 61 Forty-oight .. 26 4 Twenty . . .. 169 59 Forty-nine .. 13 7 Twenty-one . . 120 66 Fifty . . .. 15 4 Twenty-two .. 168 62 Fifty-one .. .. 17 5 Twenty-three . . 135 50 Fifty-two .. . . 175 101 Twenty-four .. 101 49 Twenty-five .. 95 50 Totals .. 18,749 6,632 Twenty-six . . 104 31 * ¥ —' Twenty-seven .. 93 36 Grand total .. 25,381 Twenty-eight .. 95 30 , * , Twenty-nine . . 72 18 Average duration of sick- 9£ weeks. 9-f weeks. ness* * Includes the qualifying-period of one week for which in most cases no benefit was paid. The sickness beneficiaries who have been in receipt of benefit during the whole year represent sick persons with continuing incapacity but insufficiently so to warrant the granting of invalids' benefits. The total expenditure on sickness benefits during the year amounted to £279,581, as against £208,790 for the preceding year, an increase of £70,791. EMERGENCY BENEFITS. Under the provisions of section 58 of the Social Security Act, 1938, the Social Security Commission has a discretionary power to grant special benefits on account of hardship to any person who by reason of age, or of physical or mental disability or for any other reason, is unable to earn a sufficient livelihood for himself and dependants, provided the applicant is not entitled to receive any other benefit under the Act. The Commission takes full advantage of this provision of the law, and many cases of genuine hardship have in consequence been relieved. During the year 2,266 emergency benefits were granted. The total expenditure on emergency benefits during the year was £130,096, as against £86,711 for the preceding year, an increase of £43,385. FINANCE. Statement showing the Receipts and Payments of the Social Security Fund for the Yeak ended 31st March, 1941. Receipts. Payments. £ Monetary benefits— £ £ Balance .. ■■ •■ •• •• 523,901 Universal superannuation .. .. 240,330 £ Age .. .. .. .. 7,101,346 Social security registration fees .. 604,179 Widows .. .. .. .. 836,368 Social security charge on wages and other Orphans.. .. .. .. 17,713 income .. .. •• •• 10,109,577 Family .. .. .. .. 411,811 Penalties, fines, intei'est, and miscellaneous 54,067 Invalids .. .. .. .. 999,648 10,767,823 Miners .. .. .. .. 88,656 Grants from Conslidated Fund: Vote, " Social Maori War .. .. .. 744 Security "(Social Security Act, 1938, section 105 (c) ) 3,200,000 Unemployment .. .. .. 299,161 Sickness . . .. .. .. 279,581 Emergency .. .. .. 130,096 10,405,460 Hospital benefits, &c. — Maternity benefits .. .. 518,997 Hospital'benefits .. .. .. 1,257,688 1,776,685 Administration expenses Land and Inoome Tax Department .. 120,000 Health Department .. .. 15,634 Social Security Department (including . £12,497 for capital expenditure) .. 306,505 442,139 12,624,284 Balance .. .. .. .. .. 1,867,440 £14,491,724 £14,491/724

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WAR PENSIONS. One of the functions of the Social Security Department is the carrying-out of the decisions of the War Pensons Board made under the provisions of the War Pensions Act, 1915, and amendments, and the War Veterans' Allowances Act, 1935. The Director of the Department holds the appointment of Secretary for War Pensions and directs the administration of the War Pensions legislation. LEGISLATION. With the outbreak of the present war and the decision of the Dominion to range herself alongside the Mother-country, it was obvious that in the very near future Parliament would be required to extend the existing war-pensions legislation to cover members of the fighting services engaged in the present conflict, and their dependants, together with the members of other organizations charged with the defence of New Zealand. Accordingly the following legislation was passed by Parliament during the year : —■ (а) War Pensions Extension Act, 1940 : (б) War Pensions and Allowances (Mercantile Marine) Act, 1940 : (c) Finance Act (No. 4), 1940 : (d) War Pensions Amendment Act, 1940. The War Pensions Extension Act, 1940, was passed on Ist August, 1940, and makes provision for pensions, at the same rates as those payable in respect of death or disablement resulting from the Great War, 1914-1918, to be paid in respect of service either in or outside New Zealand in connection with the present war. The Act is designed to cover members of the New Zealand Army, the New Zealand Naval Forces, the Royal New Zealand Air Force, and the New Zealand Army Nursing Service. Territorials and members of the permanent forces are also included. Under the provisions of section 18 of the Fiuance Act (No. 4), 1940, pensions may be granted under Part 111 of the War Pensions Extension Act, 1940, to persons permanently resident in New Zealand, in respect of death or disablement suffered by members of any New Zealand Contingent who served in South Africa in connection with the South African War, if the War Pensions Board is satisfied that death or disablement is attributable to or aggravated by such service. The War Pensions and Allowances (Mercantile Marine) Act, 194-0, became law on 11th October, 1940. The Act, for the first time in New Zealand, makes provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants, in respect of death, disablement, or detention suflered as a result of the present war. With the formation of the Home Guard and the various organizations under the Emergency Precautions Scheme the question of compensation for death or injury arising from training or the carrying-out of the duties required to be undertaken, received the careful consideration of the Government. On 6th December, 1940, legislation was embodied in the Finance Act (No. 4), 1940, making provision for pensions to members of the Emergency Reserve Corps established under the Emergency Reserve Corps Regulations, 1940, and their dependants. All pensions or allowances provided for under the legislation quoted above are granted by the War Pensions Board established under the provisions of the War Pensions Act, 1915. The following is a brief summary of the principal amendment made in respect of the War Pensions Act, 1915, and War Veterans' Allowances Act, 1935, during the year : War pension and war veterans' allowance may now be granted to or on account of the wife and children of an ex-member of the forces irrespective of the date of marriage. Children adopted on or before the 31st day of May, 1940, may also be pensioned.

Summary of War Pension Payments.

The amount paid for the year ended 31st March, 1941, shows a decrease over the preceding year of £10,275.

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(War Pensions Act, 1915.) Payments made in Total. London. Australia. Canada, Cmmtries New Zealand. £ £ £ £ £ £ £ Total payments to 31st 1,269,477 805,609 47,433 9,355 13,219 29,052,973 31,198,066 March, 1940 Payments in 1940-41 .. 35,437 44,067 .. 345 867 *1,582,739 *1,663,455 Total payments to 31st 1,304,914 849,676 47,433 9,700 14,086 *30,635,712 *32,861,521 March, 1941 * Includes £14,370 paid out in respect of pensions under the War Pensions Extension Act, 1040, in connection with the present war and £3 paid under the Finance Act (No. 4), 1940, to a member of the Emergency Reserve Corps.

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Summary of Annual Liability at 31st March, 1941.

War Pensions payable outside New Zealand at 31st March, 1941. Soldiers — Permanent .. .. .. .. .. 835 Temporary .. .. .. . . . . 94 Wives and parents of soldiers : Temporary .. 116 Dependants — Widows .. .. .. .. .. 206 Other dependants .. .. .. .. 363 Annual liability .. .. .. .. .. £99,182

Economic Pensions payable at 31st March, 1941.

PRESENT WAR PENSIONS. (War Pensions Extension Act, 1940.) Applications received for the year ended 31st March, 1941 : Soldiers, 979 ; dependants, 231 ; total, 1,210. Number of pensions granted : Soldiers, 488 ; dependants, 130 : total, 618. Number of pensions in force and annual value as at 31st March, 1941 : — Annual Value. £ Soldiers .. .. .. .. .. 433 49,984 Dependants .. .. .. .. .. 118 11,660 551 £61,644 The number of children pensioned as at 31st March, 1941, was 146. Total payments made to 31st March, 1941, £14,376. WAR PENSIONS AND ALLOWANCES (MERCANTILE MARINE) ACT, 1940. Applications received for the year ended 31st, March., 1941 : Members, 30 ; dependants, 30 : total, 60. Number of applications granted : Members, 29 ; dependants, 22 : total, 51. Number of pensions in force as at 31st March, 1941, 9. Annual value as at 31st March, 1941, £1,128. Total payments made to 31st March, 1941, £916.

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(War Pensions Act, 1915.) | St™' S:' Annual Value. £»£ _ [ Soldiers — £ £ Permanent .. .. .. .. .. 12,235 22 811,108 66 Temporary .. .. .. .. 3,543 9 276,271 78 Dependants of disabled soldiers .. 3,098 4,275 25.1,135 81 Widows — Without children .. .. .. .. 1,572 .. 156,379 99 With children .. .. .. 360 655 59,884 166 Other dependants of deceased soldiers — Parents .. .. .. 2,514 .. 93,264 37 Other adult dependants .. .. .. 65 .. 2,295 35 Guardians of children .. .. .. .. 71 112 3,198 45 Totals, &c. .. .. 23,458 5,073 1,653,534 70

(War Pensions Act, 1.915.) Average Class. Number. Annual Value. Annual Grant. £ £ Soldiers with permanent pensions .. .. .. 2,689 199,873 74 Soldiers with temporary pensions .. .. .. 1,231 92,417 75 Widows with children .. .. .. .. 137 4,264 31 Widows without children .. .. .. .. 563 21,852 39 Widowed mothers .. .. .. .. 103 4,761 46 Totals .. .. .. .. 4,723 323,167 68

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EMERGENCY RESERVE CORPS PENSIONS. (Finance Act (No. 4), 1940.) Applications received for the year ended 31st March, 1941 .. .. 5 Number of pensions granted .. .. .. .. .. .. 2 Number of pensions in force as at 31st March, 1941 .. . . . . 1 Annual value as at 31st March, 1941 .. .. .. .. .. £104 Total payments made to 31st March, 1941 .. .. .. .. £3 WAR PENSION APPEALS. War Pensions Act, 1915. Appeals outstanding on 31st March, .1940 .. .. .. 63 Appeals lodged during 1940-41 .. .. .. .. .. 247 310 Appeals dismissed during 1940-41 .. .. . . 124 Appeals upheld during 1940-41 .. .. .. .. .. 109 Appeals withdrawn and struck out, 1940-41 .. .. .. 22 255 Appeals outstanding on 31st March, 1941 .. .. .. ..55 Percentage upheld, 42-7. The total number of appeals dealt with to the 31st March, 1941, was 10,726, the percentage upheld being 48-3. Of the 255 cases dealt with during the past year, 175 were heard at Auckland, 46-3 per cent, being upheld ; 35 at Wellington, 28-6 per cent, being upheld ; 31 at Christchurch, 35-5 per cent, being upheld ; and 14 at Dunedin, 50 per cent, being upheld. War Pensions Extension Act, 1940. Appeals outstanding on 31st March, 1940 .. .. .. .... Appeals lodged during 1940-41 .. .. .. .. .. 41 — 41 Appeals dismissed during 1940-41 .. .. . . .. 8 Appeals upheld during 1940-41 .. .. . . .. 10 Appeals withdrawn and struck out, 1940-41 .. .. .. 2 — 20 Appeals outstanding on 31st March, 1941 .. . . .. 21 Percentage upheld, 50. Of the 20 cases dealt with during the past year, 11 were heard at Auckland, 7 being upheld ; 7 at Wellington, 1 being upheld ; and 2 at Christchurch, both of which were upheld. MISCELLANEOUS. Medical treatment of war pensioners during 1940-41 cost £23,989. Railway concessions to war pensioners on maximum permanent disablement pension and those with locomotor disabilities on permanent pension in excess of 50 per cent, cost £4,000 during the year. The loading paid on life-insurance policies of war pensioners due to war-service disability amounted to £169 for the year. Temporary war pensions to soldiers decreased by 450 and permanent pensions to soldiers increased by 338 during the year. The 525 deaths among war pensioners are made up as follows : Soldiers, 247 ; widows of soldiers, 23 ; other dependants, 255. WAR VETERANS' ALLOWANCES. Since the passing of the War Veterans' Allowances Act in October, 1935, 3,953 cases have been granted, of which 2,033, with an annual value of £209,445, were in force as at 31st March, 1941. These comprised 857 single veterans, 1,121 married veterans, 54 widows, and 1 grant on account of an orphaned child. The total dependent children in receipt of allowances as at 31st March, 1941, numbered 1,563. WAR VETERANS' ALLOWANCES APPEALS. Appeals outstanding on 31st March, 1940 .. .. .. 3 Appeals lodged during 1940-41 .. .. . . .. .. 13 — 16 Appeals dismissed during 1940-41 .. .. .. .. 4 Appeals upheld during 1940-41 .. .. .. . . 10 Appeals withdrawn and struck out, 1940-41. . .. .. 1 — 15 Appeals outstanding on 31st, March, 1941 .. .. .. ..1 Percentage upheld, 66-6.

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BENEFITS AND PENSIONS IN FORCE. Annual Value and Total Payments.

COST OF ADMINISTRATION. In addition to £12,510,608 paid by way of benefits and pensions during the year the sum of £28,729 was expended for medical treatment, rail concessions, &c., for war pensioners. Excluding expenditure of £12,497 on capital items, the administration costs for the year amounted to £294,008 after making allowance for £3,542 received from other Governments for services in connection with the payment of their pensions in this Dominion. An additional amount of £34,219 was also provided towards the cost of payment of war pensions and allowances. The total cost of administering payments of £12,539,337 during the year was £331,769, or 2-65 per cent. GENERAL. The coming into operation of superannuation benefits on the Ist April, 1940, with the resultant influx of a very large number of applications, again taxed to the full the Department's machinery and organization. Another factor which occasioned some anxiety in the maintenance of smooth departmental running was the entry into the armed forces of so many experienced members of the staff, the number of officers absent on war service at 31st March, 1941, being 197. In spite of these difficulties, and with the whole-hearted and loyal co-operation of the staff, the Department was able to function smoothly, thus enabling all applications received to be expeditiously dealt with. In submitting this report I would again like to express my appreciation of the staff's efficient and uncomplaining loyalty in carrying a difficult year's work to a successful conclusion. J. EL Boyes, Chairman, Social Security Commission.

Approximate Cost of Paper.—Preparation, not given ; printing (665 copies), £14.

By Authority: E. V. Paul, Government Printer, Wellington.—l94l.

Price 6!<?.]

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As at 31st March, 1940. As at 31st March, 1941. Class of Benefit or Pension. Total Total Numbei Annual Value. Payments, Number Annual Value. Payments, m Force. 1939-40. m Force. 1940-41. £ £ £ £ Universal superannuation .. .. .. .. .. 36,602 366,020 240,336 Age .. .. .. .. 93,262 6,859,420 6,517,899 97,606 7,127,821 7,101,346 Widows .. .. .. .. 10,174 830,623 785,952 10,569 843,516 836,368 Orphans .. .. .. .. 330 16,743 14,880 350 17,888 17,713 Family .. .. .. .. 11,053 314,458 252,562 16,626 485,337 411,811 Invalids .. .. .. .. 11,811 1,005,116 942,196 11,936 998,792 999,648 Miners .. .. .. .. 988 90,179 92,653 931 85,394 88,656 Maori War .. .. .. 12 936 1,103 7 546 744 Unemployment .. .. .. 4,053 .. 434,497 1,906 .. 299,161 Sickness .. .. .. .. 2,565 .. 208,790 3,452 .. 279,581 Emergency .. .. .. 1,043 .. 86,711 2,034 .. 130,096 War (War Pensions Act, 1915) .. 23,874 1,676,937 1,673,730 23,458 1,653,534 1,649,076 War (War Pensions Extension Act, 1940) .. .. .. 551 61,644 14,376 War veterans'allowances .. .. 2,079 212,500 203,439 2,033 209,445 211,325 Boer War .. .. .. 50 1,876 1,993 47 1,777 1,858 Mercantile marine pensions .. .. .. .. .. 9 1,128 916 Emergency Reserve Corps . . .. . . .. .. 1 104 3 Sundry pensions and annuities .. 138 13,207 12,106 83 9,832 10,152 Civil Service Act, 1908 .. .. 8 2,970 3,130 6 2,337 2,647 War and other pensions paid on behalf 2,717 169,217 262,561 2,721 175,900 214,795 of the Governments of Great Britain, Australia, India, Canada, South Africa, and Crown colonies _____— Totals .. .. .. 164,157 11,194,182 11,494,202 210,928 12,041,015 12,510,608