S16 PROCEEDINGS OF SECTION G. 



It will be seen that the treatment of pension funds is far from 

 being an exact science. The methods of handling have become much 

 more scientific in recent years, and have run ahead of t^e data. 

 Data are now accumulating by degrees, and until they are avail- 

 able only approximate answers to the questions submitted to the 

 actuary can be supplied. 



6- COST OF ORPHANS' ANNUITIES IN AUSTRALASIA. 



Bp H. A. Smith, F.S.S., 



Assistant Statistician , New South Wales, with Plate XI. 



In this paper what is termed an Orphan's Annuity is a pension 

 or allowance commencing upon the death of the father and 

 payable to each of his children until it attains age 16. These 

 annuities are known also as " Children's Annuities" and as 

 " Family Annuities." Personally^ I prefer the term '' Orphans' 

 Annuities," as being more expressive, because the term " orphan" 

 has now come to be aijplied to a child which has lost one of its 

 parents; but whatever the annuities are called, they are being 

 more and more considered in connexion with benefits under 

 schemes of superannuation, in conjunction with a benefit to the 

 widow. In Australasia orphans' benefits were included in a super- 

 annuation scheme established in New Zealand in 1908; in a scheme 

 of superannuation pi'oposed in 1910 for the Commonwealth Public 

 Service by Mr. G. H. Knibbs, C.M.G., Commonwealth Statis- 

 tician; and in a scheme proposed in 1912 for the Public Service 

 of New South Wales by a committee appointed for the purpose by 

 the Government of that State. 



I have given some thought to this question during the last few 

 years, and as it appears probable that any information bearing on 

 it will be of interest, not only to actuaries and statisticians, but 

 also to the general public, I am induced to put forward this brief 

 statement of the available Australasian statistics. 



It is rather remarkable that the scarcity of statistics treating 

 of the number of children born to married men at various ages is 

 world-wide, and in this connexion I may quote the remarks of the 

 actuaries (Messrs. Hardy and Wyatt), appointed by the British 

 Government to investigate the national scheme of insurance 

 against sickness, &c. Referring to the question of maternity 

 benefits, they said (see J. I. A., vol. XLV., page 421) — 



" In order to estimate the cost of, and the contributions 

 for, the maternity benefits, it is necessary to determine the 

 probability of issue to a married Tuan for each age. There 

 is no definite body of statistics in this country from which 

 these ratios can be directly derived, and the only data we 

 are aware of which are suitable for the purpose are those 



