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Legislation. During the year the provisions of the Pensions Act, 1913, were further liberalized by Parliament, the principal features of the amendment being as follows :— Old-age Pensions:— (a.) Increase in the maximum pension from 15s. a week to 17s. 6d. a week. (b.) Exemption of the full value of the home in the computation of property. The previous exemption was £520. (c.) Increase in the limit of income and pension combined of married couples to £2 15s. a week. (d.) Exemption of the whole of an applicant's earnings in the computation of income when employment has ceased. The previous exemption was limited to £2 a week, (e.) Payment of additional pension of ss. a week to veterans of the South African War extended to cases where pension and income combined do not exceed £97 10s. per annum. (/.) Additional pension of £13 per annum in respect of children extended to age 15. Widows' Pensions: — (a.) Pension age of children increased to fifteen years. (b.) Exemption of the full value of the home in the computation of property. The previous exemption was £520. (c.) Exemption of the whole of an applicant's earnings in the computation of income when employment has ceased. The previous exemption was limited to £2 a week. Blind Pensions:— (a.) Increase in the maximum pension from 15s. a week to 17s. 6d. a week. (b.) Exemption of the full value of the home in the computation of property. The previous exemption was £520. Maori War Pensions : — Removal of disqualification in respect of old-age pensions. Minor amendments provide for certain classes of seamen and blind persons who were previously disqualified for old-age and blind pensions respectively, and for the exemption in the computation of income generally of public subscriptions and compensation in respect of death up to £100. In addition, the authority previously exercised by Magistrates to deal with applications for renewal of old-age and widows' pensions is now vested in the Commissioner of Pensions. The annual increase in the appropriations arising from these added benefits was estimated to reach £150,000 per annum, and the increase in the annual liability as at the 31st March last, with several months of the first year still to go, was as follows :— £ Old-age pensions .. .. .. .. .. 123,200 Widows'pensions .. .. .. .. 17,400 Blind pensions .. .. .. .. .. 5,200 Total .. .. .. .. £145,800 The total estimated cost of the benefits conceded in the Amendment Acts of 1924 and 1925 was £300,000 per annum, and the actual increase recorded has exceeded £290,000 per annum. Cost of Administration. £ Salaries (including medical officers) .. .. .. .. .. 32,078 Contribution to Post Office for payment of pensions .. .. .. 14,066 Medical fees .. .. .. .. .. .. 5,825 Travelling-expenses of officers and pensioners .. .. .. .. 3,802 War Pensions Appeal Board (all expenses) .. .. .. .. 3,220 War Pensions Board (salaries) .. .. .. .. ~ 2,450 Printing, stationery, and advertising .. .. .. .. .. 1,898 Postage and telegrams .. .. .. .. .. .. 1,870 Rent of offices .. .. .. .. .. .. 1,130 Office fittings and requisites .. .. .. .. .. .. 508 Exchange and commission .. .. .. .. ~ .. 339 Telephones .. .. .. .. .. .. .. 247 Overtime .. .. .. . . . . .. . . .. ]11 Fuel, light, cleaning, and water .. .. .. .. .. 91 Sundry repairs and cartage .. .. .. .. .. .. 77 Fees and legal expenses .. .. .. .. .. .. 16 £67,728 Number of officers on 31st March, 1926, 149. Percentage of cost of administration to total payment (£2,719,363), 2-49,

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