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Among those who have inquired regarding the pension are residents of the United States, South Africa, Tonga, and Australia, but these have no claim by reason of the qualification requiring residence in the Dominion. The reasons for the rejected applications are as follows : — Excess of income ... ... ... ... ... ... ... 60 Excess of property ... ... ... .. ... ... 44 „ Habits ... ... ... ... •■■ ••■ ... ■■■ 8 Deserters ... ... ... ■•■ ... •■■ ••■ 5 Insufficient residence ... ... ... ... ... ... 1 Total ... ... ... 118 Of the applications not gone on with, 2 were withdrawn, and in the remaining 4 the applicants died. Of the pensioners admitted to the roll, 19 have died to date. In no less than 101 of the cases where the pension has been granted the applicants could not produce their medals, but the Department was able to obtain the necessary proof of the award of such to settle their claims. No pains have been spared to assist those who were without direct evidence of this most important qualification. Near at home, the files of the Defence Department and of the Imperial Pay Branch of the Treasury, and the New Zealand Gazette of the early seventies, have been of immense service, while farther afield the records of the War Office and of the Admiralty in London, with the authorities of which communication was carried on by cable through the High Commissioner, have been the means of determining the eligibility of quite a number. Some 11 cables in all have been sent regarding 36 applicants, and in 17 of these the award of the medal could not be traced. The number of old-age pensioners who have applied to date to have their pensions converted to military pensions is 472, and of these 419 have had their claims to the increased amount established. The figures to the end of the year were 432 claims and 380 grants. The saving to the old-age pensions vote on account of these transfers is as follows :— £ To 31st March, 1913 ... ... ... ... ... ... 9,422 To date (i.e., 30th June, 1913) ... ... ... ... ... 10,386 As an indication of the more liberal provisions attaching to the military pension as distinguished from the old-age pension, it may be mentioned that the increase on the latter is not limited to the £10 difference between the maximum pensions payable under each head, the following being examples of actual cases dealt with : — Old-age Military T Pension. Pension £ £ £ Military Pension No. 3 ... ... ... 12 36 24 16 ... ... ... 12 36 24 135 ... ... ... 8 36 28 574 :.. ... ... 16 36 20 650 ... ... ... 11 36 25 Of the 893 who have completed the form of application, 237 were members of the various Imperial regiments that visited the Dominion, 11 were engaged on Her Majesty's ships-of-war, and the remaining 645 were associated with one or other of the various Colonial Corps, the Armed Constabulary being the Force most largely represented amongst these. The Native Contingents have furnished 33 applicants. A detailed statement showing the corps to which the various applicants belonged is embodied in Table XIV of the appendix. The main features of the Widows Act Amendment are, — («.) Provision for extending the benefits of the pension to the wives of inmates of mental hospitals with young children. The number of cases added to the roll under this head during the year was 23. The total number to date totals 28. (b.) Provision for the payment of the pension after the death of the widow to the guardian of the children. The total deaths of widows to date number 18, and in 14 of these application was made and authority given for the continuance of the pension. (c.) A more liberal definition of " income." (d.) The exemption of furniture and personal effects from the computation of the pension. As a result of this provision 37 widows to date have had their pensions increased. (c.) An extension of the pension to children born out of the Dominion in certain cases, and to those born prior to the marriage of their parents. A limited number of pensioners have benefited by these provisions. Pensions in Force. Old-age Pensions. —The number of pensioners under this head on the 31st March, including 679 members of the Native race, was 16,509, being a decrease of 140 on the figures of the previous year, thus : — Europeans. Maoris. Totals. Deaths ... ... ... ... 1,496 73 Cancellations ... ... ... ... 613 30 2,212 Deduct new grants ... ... ... 1,955 117 2,072 Decrease ... ... ... ... ... .. 14()