'\o iwiVMNtv; ^^'«^< or Frietully Societies. I N 7 ip\ SOI 



for aunuities wore combined with those for sick allowances, and calculated 

 to commence at 21 years of age ; and the contributions for both sickness and 

 annuities, were entirely to cease at fi5, when the 8ui)erannuation allowance 

 became payable. By this plan, however, of combining the payments for sick- 

 ness and annuities, many societies, and even some actuaries, were led into er- 

 ror, it having been supposed that the contributions in the above table were 

 suitable for sickness during the whole period of life, instead of only to the age 

 of 65 •. But the general failure of Friendly Societies cannot be wholly attri- 

 buted to this mistake, by far the greater number of them having adopted no 

 calculation whatever. 



'.The Committee of the Highland Society of Scotland having taken as a 

 standard the average of the whole sickness in each decade reported to them 

 by Friendly Societies, resolved, for suflicient reasons stated by Mr Oliphant 

 in his Report, Is/, To commence their computations at the 21st year of age) 

 2</, To present a view, in the simplest form, of the course of a society's af- 

 fairs, supposing that 1005 members would enter in the 21st year of their age, 

 that all would continue till death, and that no new members would be admit- 

 ted ; 3(/, To assume that the various contributions should be payable whether 

 in sickness or in health ; ith^ To institute computations for annuities or super- 

 annuation allowances to such members as should survive their 70th year of 

 age ; Sth^ To found the calculations upon a medium rate of mortality derived 

 from the Northampton, Carlisle, and Swedish Tables ; and, 6th, To consider 4 

 per cent, as the rate of interest which would be received for the society's, 

 stock. 



The society was supposed to embrace /oMr schemes. 1st, For Weekly sick al- 

 lowances, both the contributions and benefits commencing at the 21st, and ter- 

 minating at the 70th year of age ; 2rf, Life annuities, the contributions com- 

 mencing at the 21st, and terminating at the 70th year of age ; but the annui- 

 ties only commencing at the 70th year, and then continuing during life ; 3d, 

 A sum payable at death, the contributions for which, commencing at the 21st, 

 and terminating at the 70th year of age, should a member live so long ; and, 

 ith. Annuities to widows, the contributions commencing at the 21st, and ter- 

 minating at the 70th year of age. All, or only some of these schemes, how- 

 ever, and one or more contributions for the whole, could be adopted or consoli- 

 dated, as a society might judge proper. Both contributions and allowances 

 were considered to be payable in the middle of the year, as the payments to 

 societies are usually made monthly or quarterly, and the disbursements weekly 

 through the whole year. 



In order that all the members of any actual society may be placed on a just 

 and equal footing, it is shewn to be necessary " either, 1st, That all shall enter 

 at the same age; or, 2d, That the difference of age shall be compensated in 

 one way or other: And there are three ways in which later entrance may be 

 compensated, 1st, By the party paying an equalising fine at entry ; or, 2d, By 

 paying a higher rate of annual contribution, according to his age ; or, 3d, By 



receiving a lower rate of allowance -j-." Thus, should an annual contribution 



* Errors of Actuaries, by an Actuary. Colchester, 8vo. Is. 



\ Highland Society's Report, p. 81. ConstaWc & Co. Edinburgh, 1824, Gt. 



