རྒྱུུ

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APPENDIX B.

Table showing Inroute of Ceylou Widows' and Orphans' Peusion Fund from Nett Contributions and Interest and the Percentage of such Income absorbed by Pension Payments.

Year.

Income from Nett Contributious,

Income from Interest.

Income from Nett Contributions

and Interest.

Pension Payments.

Percentage of Income from Nett Contributions and Interest absorbed by Pension Payments.

RA

Rs

Bs

Ks

1881

31,678

384

32.262

109

1843

63,723

5.794

69,517

1,702

1886

85,706

9,220

91,926

5.657

6

1887

86.146

13,870

100,016

7,671

N

1888

95,070

12,417

114,487

10,307

9

1899

99.879

25,717

125,596

12,812

TO

1800

105,392

32,415

137,807

16,780

12

[89]

114,144

39,815

158.959

19,38]

13

1892

123,061

48,004

173,065

21,808

B

1853

136.230

56,974

193,204

2-,399

13

1894

148,735

67,780

216,515

34,397

16

IN9S

174,061

78,398

272.459

42,470

17

[NOG

179.347

90,888

270,235

40,944

15

1897

13.50%

104,432

2:8,840

41,312

15

1898

152,444

118,963

311,407

62,299

20

1599

201,576

133.604

335,140

58,172

17

1900

199,673

149,759

349,433

70.703

22

1901

210.432

169,592

375,024

4,371

1902

210.812

IN1,799

392,6||

*5,907

1903

209 9573

198,894

408,847

94,461

22 28

Note — Tar @guns in the last two volumus world have been lugher if the tibles direl July, 113, had been in force from the commencement of the Fund,

No. 169.

HONGKONG.

Government House, Hongkong, 24th June, 1907.

SIR,- have the honour to acknowledge the receipt of Your Lordship's despatch No. 11 of the 16th of January on the subject of the Ordinance to amend the Widows' and Orphans' Pension Fund Ordinance 1900,

2. The only explanation 1 can offer of the fact that in 1903 the Directors of the Fund and the Executive Council agreed to the proposal for the taking over of the Fund by the Government, is that neither the then Chairman of the Fund or any member of the Executive Council, was a contributor. None of the four Directors who were contributors raised at the time any objection to the transfer, and this being so the Chairman and the Executive Council concluded that there was no opposition to the proposal on the part of the contributors who do not appear to have given the matter detailed consideration.

3. When, however, the Appropriation Bill for 1907, in which the Widows' and Orphans' Pension Fund was included as revenue, came before the Legislative Council the Un-Official Members, as has been explained in Sir M. NATHAN'S despatches No. 243 of the 6th of October, 1905, and No. 280 of the 15th of November last, objected to the inclusion of the fund. A reference to the reports of the meetings of the Council forwarded with the first of those despatches will place Your Lordship in possession of the remarks made on the subject by Messrs. R. SHEWAN and G. STEWART who had been deputed by the Un-Official Members of Council to review and criticise the Budget for the current year.

4. Prior to the meeting of the Legislative Council referred to, Sir M. NATUAN had received representations against the transfer from contributors to the Fund; and he, therefore, decided not to introduce the Bill to amend the Willows' and Orphans' Pension Fund Ordinance until these representations land been put into definite shape by a small Committee of Civil Servants constituted for the purpose.

Er

HON. COLONIAL SECRETARY,-After ascertaining the views of the Contributors to the Widows and Orphans' Pension Fund on the proposal that the Government should take over the Fund we find :-

That a

large majority of members is strongly opposed to the Fund being taken over by the Government.

:

2. With regard to this finding it is argued that the valuation of the Fund as it existed on 31st December, 1900, showed that the gross liabilities of the Fund then amounted to $232,337, that there was a surplus of between 4 per cent and 5 per cent of the liabilities and that therefore the Fund was so far in a sound financial position that although the present liabilities of the Fund could not be determined until a further valuation took place, the balance to credit of the Fund on 31st December, 1906, amounting to $272,022 appeared to indicate that the Fund was maintaining a position of solvency: that the financial position of the Fund as disclosed by the next valuation or by some future valuation might justify an increase in the benefits derived from the Fund and that the benefits now offered were not sufficient compensation for the sacrifice of possible prospective benefits and for the loss of management.

8. As regards the contention that “the Government made in effect a large contribution to the Fund by agreeing to pay interest at the high rate of 6 per cent on the monies belonging to the Fund deposited with it" we would point out that the rate of interest charged on loans against first class security by the Hongkong and Shanghai Banking Corporation since 1891 has been:

To the Public. To the Government.

7% per an. per an. 7% per an. 6% per an.

From 1.1.91-31.8.91

יי

7.

1.9.91-30.9.92

6

1.10.92-30.9.95

1.10.95-date

and on current account :-

From 1.1.91-date

2% per an

per an.

per an.

per an.

7% per an.

From these figures it is evident that the monies belonging to the Fund deposited with the Government have possessed a value to the Government of 2%-54% varying with the state of its banking account, And it is within our knowledge that for some years past and for periods varying in length the Government's account with the Bank has been overdrawn as a result of currency transactions.

It is also evident from the figures that the monies belonging to the Fund have possessed] a umrketable value during the whole period equal to and during part of the period exceeding the Government's contribution.

Further, we have made enquiries and are informed on good authority that the Fund could be lent out on mortgage at the present time at as much as 8-9% and that this form of investment would offer the very best security to the Contributors.

4. We would suggest therefore as a means of relieving itself of the burden of paying 6% on surpluses that the Government might itself invest or appoint trustees to invest the monies belonging to the Fund in approved local securities.

5. In conclusion we would respectfully subunit that the large majority of the Contribu- tors, in view of the fact that they are never likely to be transferred, cannot be regarded as being affected by the argument for the Fund being taken over by the Government and for the introduction of the Ceylon Tables that "it is very desirable that the pension rates in Hongkong, the Straits Settlements and the Federated Malay States should be the same. especially as for some purposes the three administrations are manned by a joint service". The very small section of Contributors who are eligible for transfer have presumably no other advantage to gain, the pension funds of the three administrations being distinct, than that they would not on transfer find themselves possibly compelled to subscribe to a Fund at a higher rate than that to which they have been accustomed.

S. B. C. Ross. FRANCIS CLARK, E. H. D'AQUINO, R. CROFTON.

Directors.

37

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