3

H.—l

Separate Accounts. —Every approved society and every branch thereof must keep books and accounts relating to 1 liits system separate from its other accounts, and must submit such books and mi counts to State auditors. Such society and branch is to be valued every three years in respect of the assets and liabilities arising under the Act. Returns as required by the Commissioners must be rendered. Branchks and Transfers. —The branches of a society cannot secede or dissolve without the consent of the Commissioners. There is also provision for the transfer of a contributor from one society to another, or to another country having branches of an approved society or national machinery of similar character. Surplus.—Should a surplus be disclosed at valuation it is to be used for the following purposes : (1.) If the society has branches, to reduce the deficiency, if any, of such branches. (2.) Additional benefits as sanctioned by Commissioners. (3.) If a branch shows a surplus, one-half of such surplus to be transferred to the central body of the society and the remaining half to be distributed in benefits as approved. (4.) If after a distribution of benefits a deficiency is subsequently shown to exist, there shall be no further distribution of benefits until the deficiency is remedied. Deficiency.—Any deficiency disclosed at valuation may, as far as possible, be made good out of any surplus that the central body may hold, with the proviso that the central body may refuse to do so if satisfied the deficiency is due to maladministration. It is then compulsory on the society or branch to make good the deficiency in three years either by—(l) compulsory levy on members ; (2) reducing sickness or maternity benefit; (3) deferring date of sickness benefit; (4) reducing periods of sick-pay ; (5) increasing periods between sickness and disability. The society or branch may by rule provide that levies may be enforced by notifying the employer to deduct from the members wages. Age Adjustment.—The finances of societies which accept as members more than a fair proportion of old contributors are protected by the establishment of a central equalizing reserve fund, to which all societies contribute a levy of for men and l£d. for women per week. Existing Friendly Societies.—Any registered society or branch shall, in respect of its existing funds, submit a scheme for abolishing, reducing, or altering such benefits as respect members who become insured persons under this scheme, and for the application of the accumulated funds in any of the following methods : (1) payment of other benefits ; (2) reduction of contributions of members in respect of additional benefits ; (3) in the payment of contributions under this scheme payable by its members. There is power to admit as approved societies such superannuation funds now carried on by employer and employees as are sanctioned by the Commissioners. Deposit Contributors. Medically Unfit and Others. —Persons who have not been able or who omit to join an approved society, or who have been expelled from one society and are unable to join another, are required to pay their own and employer's contributions into what is called the " Post-office Fund," and they are to be provided for on the system adopted by " deposit " societies. The sick and disablement allowances are payable only so long as the contributions, &c, credited to the contributor last, but medical treatment continues until the end of the current year. There must be a year's contributions paid into the fund before benefits commence. This fund therefore carries all the risks that the approved societies will not undertake. The administration of the sickness and medical treatment of " deposit contributors " is under the local Health Committee, a most important body that is to be established under this system. Doctors and Medicine. Medical Treatment. —The intention is to leave the arrangement of this benefit as at present — i.e., with the societies, who may contract with doctors as heretofore, except that the remuneration of the medical practitioners is to be increased, and the dispensing is to be excluded from their work and confined to dispensaries and chemists. It appears that the present average friendly society payment to doctors in England is about 4s. per head, including medicines, but the Bill proposes to raise this rate. It is interesting to compare the charge with the average cost in New Zealand—viz., about 18s. per member. The societies, of course, will provide medical treatment only for the voluntary and compulsory insured persons who are attached to them as members, and for these even they may arrange for the local Health Committee to undertake the administration of the benefit on their behalf, recouping the committee out of their funds. The medical question, which, as in other parts of the world, is at present regarded as unsatisfactory in Great Britain, will be a difficult one to solve, and if this scheme succeeds in placing it on a footing agreeable to both parties, then it will have achieved a notable result. Local Health Committees. For Local Health Supervision.—These important bodies are to be established in every county or borough, with the following constitution: —As many as eighteen and not less than nine members may be appointed as hereunder: One-third by the borough, consisting wholly or in part of sanitary authorities ; one-third by the approved societies of district; one-third by any association of " deposit contributors," or, if there is no such body, by the other members of the committee. In addition, the Commissioners may appoint a number not exceeding one-fourth of those before mentioned, including at least two medical practitioners.