PROCEEDINGS OF SECTION G. 513 



As regards the mortality among the early breakdowns, it is 

 natural that nothing should be definitely known. A rough and 

 ready approximate table has perforce to be used. The usual 

 assumption is that the mortality rate is constant, and equal to 

 9 per cent, for all ages up to about 45, and then improves slowly, 

 becoming nearly normal at age 65. 



Age. 



30 

 35 

 40 

 45 

 50 

 55 

 60 

 65 



The reason is tliat men under fifty are not retired as broken 

 down unless it is absolute breakdown, and then the mortality rates 

 are the same practically whether the age of retirement is 30 or 50. 

 After that age the cause of retirement is breakdown, becoming 

 more and more affected by old-age failure as the regular pension 

 age of 65 draws nearer and nearer. At the rei»iring age of 65, 

 of course, the mortality of all becomes normal. 



Trust funds have some provision for pensioning off a servant 

 who breaks down in health. Here, again, satisfactory data are not 

 available. For long this benefit was considered as a minor benefit, 

 but recent experience has shown that breakdown rate, while 

 existent, had escaped notice because cases were "not recorded. 

 Closer records being kept, the seriousness of the liability revealed 

 itself. 



My own impression is that the breakdown pension benefit is a 

 very serious matter indeed, and that v/e have not yet seen the full 

 extent of it. 



It is very suggestive that while in 1901 the rate was recognised 

 and an estimate made for practical purposes in the Old Country, m 

 1911 the same actuary, with longer experience, has found it neces- 

 sary to increase his estimated rates by no less than 50 per cent. 



So serious a view do some actuaries take of the position that I 

 have seen it recommended that a sufficient contribution to the fund 

 to be made by the employer would be his guaranteeing to pro\ade 

 these breakdown pensions, all the other benefits being left to be 

 provided for by the employe himself out of his contributions. As 

 the employer's contribution ranges from 10s. to <£l for every £i 

 paid by the member, it would appear that the breakdown pension, 

 according to that authority, costs from 30 — 50 per cent, of the total 

 benefits provided. 



6117. R 



