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1937. NEW ZEALAND.

THIRTY-NINTH ANNUAL REPORT OF THE PENSIONS DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1937.

Presented to both Houses of the General Assembly pursuant to Section 90 of the Pensions Act, 1926.

Tlie Commissioner of Pensions to the Hon. the Minister of Pensions. Sir, — Pensions Department, Wellington, 30th August, 1937. I have the honour to furnish herewith, for the information of Parliament, the report of the Department relating to war, old-age, widows', Maori War, miners', epidemic, invalidity, and sundry pensions, family allowances, and war veterans' allowances for the year ended 31s't March, 1937. The following comparative statement relates to the annual value and gross payments of all pensions administered by the Department for the past two years : —

Pensions in Force: Annual Value and Total Payments.

Cost per head of European population : 1935-36, £2 9s. Id. ; 1936-37, £3 ss. 9d.

* Blind pensions formerly payable have been merged with invalidity pensions.

As at 3Xst March, 1936. As at 31st March, 1937. Class of Pension. ~ ~Total _ Total Number. Annual Value.l Payments, Number. Annual Value. Payments, | 1935-36. 1936-37. £ £ £ £ War .. .. .. 22,631 1,384,340 1,349,447 23,711 1,532,424 1,483,345 Old-age .. .. .. 43,309 1,828,150 1,718,601 54,134 3,068,293 2,413,103 Widows' .. .. 4,369 321,605 311,864 4,753 464,879 412,280 Maori War .. .. 43 2,107 2,577 36 2,106 1,972 Mines' .. .. .. 851 73,331 67,834 1,040 87,838 83,253 Epidemic .. .. •• 10 501 907 3 76 253 * Invalidity .. .. .. 507 23,961 22,991 7,491 478,165 284,760 Boer War .. .. 55 2,086 2,127 57 2,131 2,067 Sundry pensions and annuities 151 15,065 13,053 144 13,161 13,892 Civil Service Act, 1908 .. 13 4,460 4,676 11 3,933 4,106 Family allowances .. .. 11,691 144,856 149,043 9,515 125,702 130,730 War veterans'allowances .. 1,043 58,358 16,544 2,079 151,713 110,667 Totals .. .. | 84,673 3,858,820 3,659,664102,974 5,930,421 ; 4,940,428

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Payments on behalf of other Governments, The following figures relate to the war and other pensions paid by the Department during the year on behalf of other Governments :—

WAR PENSIONS. Summary of War Pension Payments.

The amount paid for the year ended 31st March, 1937, shows an increase over the preceding year of £133,898.

Summary of Annual Liability as at 31st March, 1937.

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Number at . , . Government. Class of Pension. 31st March, j Annua! Average Payments, Value. Pension. 1936-37. £ £ s. d. £ Great Britain .. .. War .. .. 1,377 72,324 53 0 0 \ „ . Army and civil .. 760 52,199 69 0 0 /158,153 Australia .. . . War .. .. 515 24,167 46 18 6 26,518 India .. .. Army and civil .. 59 14,949 253 0 0 20,339 South Africa War .. . . 4 372 93 0 0 \ r .. Civil .. .. 31 4,076 131 0 0 / 5 ' 78y Crown Colonies .. .. „ .. 38 9,861 260 0 0 11,963 Canada .. .. .. War .. .. 1 216 216 6 8 566 Totals.. .. .. 2,785 178,164 .. 223,328

Payments made in Total. London. Australia. Canada. Africa Ck>mTtries ew Zealand. £ £ £ £ £ £ £ Total payments to 31st 1,064,912 623,076 36,782 6,617 10,882 23,084,950 24,827,219 March, 1936 Payments in 1936-37 50,739 30,582 2,267 590 801 1,398,366 1,483,345 Total payments to 31st 1,115,651 653,658 39,049 I 7,207 11,683 24,483,316 26,310,564 March, 1937 '

Class of Pension. Number of dumber of j Average Pensioners. Children. aJL * c - , Pension. ■ ■ . ; ■ - . . ■ '1 - £ £ Soldiers (permanent) .. .. .. 10,647 33 621,630 58 Soldiers (temporary) .. .. .. 4,444 35 318,423 72 Dependants of disabled soldiers .. .. 3,252 5,809 262,477 81 Widows (without children) .. .. 1,332 .. 128,256 96 Widows (with children).. .. .. 385 740 63,314 164 Other dependants of deceased soldiers— Parents .. .. .. .. 3,441 .. 129,399 38 ' Other adult dependants .. .. 75 .. i 2,516 34 Guardians of children .. .. 135 231 : 6,409 47 Totals, &c. .. .. .. 23,711 6,848 1,532.424 65

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War Pensions payable outside New Zealand as at 31st March, 1937.

Economic Pensions payable at 31st March, 1937.

War Pension Appeals. Appeals outstanding on 31st March, 1936 .. .. .. . . 328 Appeals lodged during 1936-37 . . .. .. • • • • 971 Appeals dismissed during 1936-37.. .. .. .. • ■ 465 Appeals upheld during 1936-37 . . .. .. .. • • 424 Appeals withdrawn and struck out, 1936-37 .. .. 27 916 Appeals outstanding on 31st March, 1937 .. .. .. 383 Percentage upheld, 46-3. The total number of appeals dealt with to the 31st March, 1937, was 8,415, the percentage upheld being 48 per cent. Of the 916 cases dealt with during the past year, 502 were heard at Auckland, 48'6 per cent, being upheld ; 169 at Wellington, 34-3 per cent, being upheld ; 113 at Christchurch, 48-7 per cent, being upheld ; and 132 at Dunedin, 50-8 per cent, being upheld.

Medical treatment of war pensioners during 1936-37 cost £66,87 J. Railway concessions to war pensioners on maximum permanent disablement pension and those with locomotive disabilities on permanent pension in excess of 50 per cent, cost £1,869 during the year. The loading paid on life-insurance policies of war pensioners due to war-service disability amounted to £173 for the year. Temporary war pensions to soldiers increased by 181 and permanent pensions to soldiers increased by 346 during the year. The 484 deaths among war pensioners are made up as follows : Soldiers, 197 ; widows of soldiers, 20 ; other dependants, 267. War Veterans' Allowances. Since the passing of the War Veterans' Allowances Act in October, 1935, 2,529 cases have been granted, of which 2,079, with an annual vaiue of £151,713, were in force as at 31st March, 1937. These comprised 854 single and 1,191 married veterans, with 1,994 dependent children, and 34 widows.

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Wives and Soldiers. Parents of Dependants. Soldiera - Annual liability ! ... ttt' i i Other Permanent. : Temporary. Temporary. Widows. Dependants. ■ I £ Great Britain.. .. 296 66 44 149 364 52,366 Australia .. .. 333 167 54 65 119 4-3,706 Other countries ..56 19 4 6 23 4,897 Totals .. 685 252 102 220 506 100,969

Average Class. Number. Annual Value. t Annual Grant. £ £ Soldiers with permanent pensions .. •• •• 1,883 115,851 Soldiers with temporary pensions • 1,474 90,834 62 Widows with children .. . • • • • • 85 2,685 32 Widows without children .. . •• •• 331 12,818 Widowed mothers .. .. •• •• •• 163 7 ,482 46 Totals 3,936 229,670 58

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War Veterans' Allowances Appeals. Appeals outstanding on 31st March, 1936 j. .. ~ . . 36 Appeals lodged during 1936-37 .. .. . . .. . . 96 — 132 Appeals dismissed during 1936-37 .. .. .. .. .. 67 Appeals upheld during 1936-37 . . .. . . . . 42 Appeals withdrawn and struck out, 1936-37 .. .. .. . . 5 — 114 Appeals outstanding on 31st March, 1937 .. .. .. jg Percentage upheld, 36'8 Family Allowances. The claims lodged during the year totalled 1,417, which, with the 225 outstanding from the previous year, made a total of 1,642 to be dealt with. Of these, 1,131 were accepted and 308 rejected. n re ject e d. claims represent cases where the income of the family was in excess of the limit allowed. Three hundred and seventy-nine new claims from Maoris were finally dealt with during the year, 241 being granted and 138 rejected. The total children of the 9,515 allowances in force as at 31st March, 1937, and those in excess of two ib a family numbered 43,454 an d 24,424, the average per family being 4-56 and 2*56 respectively. The total amount paid during the year was £130,730, while the total annual value of all allowances m force at the close of the year was £125,702.

Weekly Rates at which Allowances granted.

Numbers according to Size of Family.

Weekly Incomes of Families.

Co,st op Administration. Tie-cost of administration for the year amounted to £88,039, the principal items of expenditure being £45,385 for salaries of officers of the Department, who numbered 265 as at 31st March, 1937 ; £15,745 and £4,601 paid to the Postal Department for payment of pensions and postage and telegrams respectively ; £5,230 for salaries and other expenses of the War Pensions Appeal Board ; and £2,427 for salaries of the War Pensions Board. The percentage of cost of administration to the total pension payments made of £5,163,756 (including £223,328 paid on behalf of other Governments) was 1-70, or 4-Id. in the pound. LEGISLATION. Civil Pensions. The Pensions Amendment Act, 1936, and the Finance Act, 1936 (No. 2), widened the scope of the civil-pensions legislation, and the following brief summary shows the principal benefits to the pensioners coming within the various categories — Old-age Pensions. The maximum pension has been increased from £45 10s. to £58 10s. per annum. Any income which has ceased may now be exempted.

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Weekly Rate. J Is. 2s. j 3s. 4s. , ōs. j 6s. 7s. 1 8s. 9s. : 10s. I 12a. 14s. 16s. 18s. Number granted .. 4 625 ' 5 | 279 ' i 109 1 66 1 22 10 3, 1 1 _. J I ! I 1 I

Number of Children . 0 I in Excess of Two. i • 8. 9. ' 10. — L 1 1 Number of families .. 606 281 115 I 77 30 14 6 1 1

Weekly Income. £1 and under 0ver £1 and U P 0ver £2 and U P ° Teir £3 an d up ; fl ,,, to £2. to £3. to £4 ' i Uver Number of families .. 29 196 525 171 210

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Receipts during any income-year not exceeding £500 by way of legacy, life insurance, or compensation for accidental injury or death, where such receipts are expended on a home property or for any other purpose deemed reasonable, may also be exempted. Additional property exemptions include any interest in land, including any interest in any mortgage of any estate or interest in land. The general exemption for other property has been increased from £50 to £500. The period of residence in New Zealand to qualify for pension has been reduced from twenty-five years to twenty years. The deduction in respect of age from the pension of a female applicant under sixty-five years has been eliminated, and a woman of sixty years of age now receives the full pension. Widows' Pensions. Every pension has been increased by 10s. a week, and the maximum pension has been increased from £4 to £4 10s. a week. The old provision charging 5 per cent, of all property other than home and furniture as constructive income has been eliminated. A new provision provides pension for deserted wives with children on the same basis as widows pensions, subject to maintenance proceedings having failed, or a maintenance order not being complied with and the whereabouts of the husband being unknown. Miners' Pensions. Provision was made extending the qualifying diseases for miners' pensions, which now include miners' phthisis (pneumoconiosis) or tuberculosis of the lungs or any other disease of the respiratory organs commonly associated with or a sequel to pneumoconiosis, or any other occupational disease or heart-disease contracted while working as a miner in New Zealand. A definite right to pension at the rate of 17s. 6d. a week during widowhood has been given to the widow of a miner dying while in receipt of pension. (Right to pension irrespective of circumstances previously was for two years only.) Military Pensions (Maori War). The pension payable to a Maori War veteran has been increased from £49 per annum to £58 10s. per annum. Blind Pensions. The pensions formerly payable to blind persons under Part 111 of the Pensions Acft, 1926, are now included in the new invalidity pension provisions, with new benefits in respect of wife and children (10s. weekly for the wife and 10s. a week for each child) and an increase in the basic pension from ITs. 6d. to £1 a week. Invalidity Pensions. The Pensions Amendment Act, 1936, made provision for the first time for the payment in New Zealand of invalidity pensions to persons of the age of sixteen years or upwards. The benefits of the Act arc payable to persons of good character and who ha.ve been resident in New Zealand for ten years and who are permanently incapacitated for work, provided the Condition of invalidity arose in New Zealand. The following scale of pensions is provided for : — Married Man : £1 a week plus 10s. a week for wife and 10s. a week for each child under sixteen years, with maximum pension of £4 a week. Widower with Child or Children : £1 a week plus 10s. a week for each child under sixteen, maximum pension £4 a week. Other Applicants; £1 a week. , Apart from pension, an income of £2 a week is allowed in the case of a mairried applicant or widower with children, and £1 a week in the case of other applicants. The qualifications in respect of property are the same as for old-age pensions. Family Allowances Amendment Act, 1936. The income exemption permitting maximum allowance in respect of children! has been increased from £3 ss. to £4 a week. War Pensions Amendment Act, 1936. The benefits brought about by this Act are — A time-limit of seven years from date of discharge within which marriage was required to take place before the wife or widow of a disabled or deceased ex-member of the N.Z.E.F. could qualify for pension has been removed, and the pensions become payable where marriage took place prior to Ist August, 1936 (this also applies to allowances under the War Veterans' Allowance Act, 1935). The maximum economic pension payable to certain classes of ex-soldiers has been increased from £1 2fe. 7d. a week to £1 ss. a week. The reductions made by the National Expenditure Adjustment Act, 1932, in certain classes of statutory pensions and all ecomonic pensions payable to dependants of deceased soldiers have been fully restored.

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Organization.

The increased number of pensioners consequent upon the widening of the scope of the pensions legislation necessitated a review of the number of pension districts into which the Dominion is divided. As a result, new branch offices at Whangarei and New Plymouth are being opened, bringing the total number of branches to fourteen. The extended activities of the Department made necessary an increase of staff, and this has rendered the accommodation of the Department's offices, particularly the branch offices, inadequate. Several branch offices have already been moved to more commodious and convenient premises, and arrangements are being made, where necessary, to suitably accommodate the staffs of the remaining branches. Better provision is being made also for the convenience of the public, and, where possible, special rooms are provided to ensure privacy when applicants are being interviewed.

Statistics in regard to Civil Pensions.

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—— Old-age. i Widows'. Maori War. Miners'. "Invalidity. Epidemic. Pensions in force at 31st March, 1936 .. 43,309 4,369 43 134J J New pensions granted, 1936-37 .. .. 14,388 1,117 .. Deaths during 1936-37 .. .. .. 2,974 7 7 58 201 Cancellations during 1936-37 .. . . 589 726 .. 20 107 7 Net increase or decrease .. .. .. +10,825 +384 — 7 +189 +6,984 — 7 Pensions in force at 31st March, 1937 .. 54,134 4,753 179J / 3 Total children in receipt of pension, 31st .. 9,666 .. 415 2,123 March, 1937 Total European pensioners, males sixty-five 51,779 years and over, and females sixty years and over Total Maori pensioners .. .. .. 2,318 458 12 277 Total Asiatic pensioners .. .. .. 37 .. . . . . 2 § Pensioners under section 7 (b), Pensions Act, 71 1926 Percentage of European pensioners to total 3-4 European population New claims lodged .. .. 17,191 1,676 375 11,337 New claims rejected .. .. 2,008 494 107 2,956 Number of children on whose account pension .. 2,416 granted Annual liability at 31st March, 1937 .. £3,068,293 £464,879 £2,106 £87,838 £478,-165 £76 Average pension per annum . . .. £56 13 7 £97 16 2 £58 10 0 £84 9 2 £63 16 8 £25 6 4 Gross expenditure for year 1936-37 .. £2,413,103 £412,280 £1,972 £83,253 £284,760 £253 Increase or decrease on figures of previous +£694,502 +£100,416 -£605 +£15,419 +£261,769 -£654 year Cost per head of European population .. £1 12s. Id. 5s. 6d. 0'3d. Is. l-3d. 3s. 9-5d. O-04d. Credit from national endowment .. .. £40,940 Refunds paid to Public Account .. .. £711 £151 .. £14 £132 Number of pensioners in homes and hospitals 1,596 .. 4 15 829 Amount paid to controlling authorities of £67,324 .. £186 £1,114 £33,440 these Number of pensioners in mental hospitals .. 177 3 .. 1 Amount paid to Mental Hospitals Depart- £8,731 £70 .. £65 ment on account of these Unpaid instalments as at 31# March, 1937 .. £9,340 £2,057 £33 £133 £3,659 Instalments forfeited and subsequently paid.. £3,157 £574 £8 £66 £3,442 Average of family under fifteen years . . . . 2-03 Total claims lodged to date .. .. 166,163 21,588 1,893 3,451 12,303 Total claims established .. .. .. 132,198 18,137 1,698 2,658 7,998 972 Total claims rejected .. .. .. 32,392 3,333 195 766 3,206 Total number of children benefited. . . . .. 43,545 Total deaths .. .. .. 63,480 151 1,656 1,030 340 14 Total guardians appointed . . .. . . 409 Total cancellations .. .. .. 14,584 13,233 6 588 167 955 Grand total paid to date .. .. .. £27,508,721 £5,263,666 £609,409 £903,458 £458,617 £474,087 Total amount paid on account funeral expenses .. .. . . £9,662 Total credit from national endowment .. £860,389 Invalidity appeals — Appeals lodged during 1936-37 . . .. .. .. . . . . 657 Appeals dismissed during 1936-37 .. . . .. . . 308 Appeals upheld during 1936-37 .. .. . . . . .. .. 165 Appeals withdrawn and struck out 1936-37 . . .. .. .. 18 Appeals outstanding on 31st March, 1937 .. . . . . .. .. 166 Percentage upheld . . .. . . .. . . .. .. 33-6 * Blind pensions formerly payable have been merged with Invalidity Pensions. f Miners. J Widows of miners. § Pensions may be granted to males sixty years and over and to females fifty-five years and over in eases where two or more children under fifteen are being maintained. The seventy-one cases above comprise : European — Males, 60 and under 65, 61 ; females, 55 and under 60, 4; Maori —Males, 60 and under 65, 5; females 55 and under 60, 1. Total European population at 31st March, 1937, 1,502,737.

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Pensions granted, Deaths, and Cancellations in each Year, with Number in Force.

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Number of ' „ „ In Force „ , , Number of ,, , n In Force ■ī, e t T f Pensions Deaths. Ca,^ a ' at End of Pensions Deaths - tions at End » f 31st March, granted _ | tions. Period dlst Marcn, granted n°ns. period Old-age. Family Allowances. 1899-1900 12,186 824 77 | 11,285 1928 .. 3,154 25 123 3,006 1901-1910 17,848 10,237 3,576 15,320 1929 .. 1,437 39 641 3,763 1911-1920 24,028 16,017 3,338 19,993 1930 .. 1,004 41 858 i 3,868 1921 .. 2,152 1,880 428 19,837 1931 .. 1,399 46 604 4,617 1922 .. 2,553 1,578 321 20,491 1932 .. 3,040 56 269 7,332 1923 .. 2,781 1,763 328 21,181 1933 .. 3,841 68 785 10,320 1924 .. 2,549 1,870 392 21,468 1934 .. 3,022 68 1,129 12,145 1925 .. 2,654 1,635 425 22,062 1935 .. 2,166 63 1,927 12,321 1926 .. 3,100 1,839 418 22,905 1936 .. 1,730 55 2,305 11,691 1927 .. 3,302 2,049 407 23,751 1937 .. 1,131 25 3,282 9,515 1928 .. 3,638 2,093 421 24,875 — 1929 .. 3,614 1,968 411 26,110 Totals.. 21,924 486 11,923 1930 .. 3,506 2,242 465 26,909 1931 .. 4,640 2,202 352 28,995 1932 .. 5,806 2,188 296 32,317 1933 .. 5,534 2,262 657 34,932 Maori War i£ :: IS IS % S5Z ™ ™ . » 1936 ... 6,476 2,746 562 43,309 1921 .. 2 130 811 1937 .. 14,388 2,974 589 54,134 1922 .. 1 72 .. 740 Totals.. 132,198 63,480 14,584 .. 1924 .. 1 80 1 589 I J 1925 .. 1 «-*■ ♦ • tit j , 1926 .... 74 1 444 Widows. 1927 70 374 1912-1920 5,817 47 2,326 3,444 lq5R " 66 30 8 1921 .. 627 8 642 3,421 ]( ™ 49 259 1922 .. 523 3 598 3,343 J* " ' 50 209 1923 .. 616 12 536 3,411 J™ ' ' x 40 170 1924 .. 730 8 607 3,526 1932 27 143 1925 .. 602 6 524 3,598 1933 36 | 106 1926 .. 684 2 447 3,833 1034 20 86 1927 .. 705 6 562 3,970 21 65 1928 .. 761 4 629 4,098 " 22 .. 43 1929 .. 823 5 584 4,332 m7 7 36 1930 .. 702 6 655 4,373 15,01 " 1931 " q 2? I'SS Totals.. 1,698 ,656 6 1932 798 8 647 4,709 1933 .. 731 3 750 4,687 — 1934 .. 703 5 766 4,619 1935 .. 687 2 799 4,505 1936 .. 696 10 822 4,369 War. 1937 .. 1,117 7 726 4,753 1916-1920 49,254 953 13,730 34,571 1921 2 207 358 4)656 31,764 Totals.. 18,137 151 ] 13,233 .. 1922 .. 945 369 3,249 29,091 ' 1923 .. 625 358 2,898 26,460 * Invalidity. 1924 .. 551 361 3,484 23,166 1925 114 114 1925 .. 432 334 1,946 21,318 1 926 " 92 9 1 196 1926 .. 353 369 586, 20,716 1927 46 6 4 232 1927 .. 350 353 88 20,625 ]928 39 11 1 259 1928 .. 330 401 -6 20,560 1929 43 14 6 282 1929 .. 398 360 —88 20,686 1930 .. 47 10 8 311 1930 .. 347 405 -111 20,739 1931 43 18 6 330 1931 431 387 —242 21,025 1 932 ' 45 13 2 I 360 1932 .. 348 432 —100 21,041 1933 " 52 9 8 395 1933 .. 352 400 —111 21,104 1934 60 12 5 438 1934 365 419 -264 21,314 1935 70 24 10 474 1935 .. 463 445 —346; 21,678 1 936 " 55 13 9 507 1936 .. 740 451 —664! 22,631 1937 .. 7,292 201 107 7,491 1937 .. 1,136 484 t ! 23,711 1 I Totals.. 7,998 340 167! .. Totals.. 59,627 7,639 28,277 I * Blind pensions formerly payable have been merged with Invalidity Pensions. f This represents 822 reinstatements lees 394 actual cancellations.

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Pensions granted, Deaths, and Cancellations in each Year, with Number in Force—continued.

H. Digby Smith, Commissioner of Pensions.

Approximate Cost of Payer.—Preparation not given; printing (644 copies) £12 10s

By Authority: E. V. JPaijl, Government Printer, Wellington. —1937.

Price 6d.~]

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Year ended _ .. Oancella31st March. l enS ' 0 8 Deaths " tions. a * :End ' ol granted. Period. Miners'. 1916-1920 | 683 133 135 li 415 1921 .. 1 107 43 5 474 1922 .. 78 38 8 506 1923 .. 96 52 6 544 1924 .. 88 48 4 580 1925 .. Ill 70 14 607 1926 .. 96 50 13 640 1927 .. 84 51 5 668 1928 .. 104 47 4 721 1929 .. 94 53 2 760 1930 .. 86 59 8 779 1931 . . 153 51 5 876 1932 .. 175 56 4 991 1933 .. 100 52 296 743 1934 ' 70 51 26 736 1935 .. 124 48 29 783 1936 ., 142 70 i 4 851 1937 .. 263 58 20 1,040 | j Totals..! 2,658 1,030 588 War Veterans' Allowances. 1936 .. 1,061 7 lli 1,043 1937 .. 1,468 Ii 388, 2,079 Totals.. 2,529 51 • 399 ' i

_ _i : Year ended Number of Canoella-| 31st March, P " s Deatha - tion" 1 End of ( granted. | Period. Epidemic. 1920 ., 939 1921 .. 27 4 113 849 1922 .. | 6 .. 172 683 1923 .. .. 2 112 569 1924 1 111 457 1925 ...... 92 365 1926 .. ... 1 51 313 1927 .. .. 2 52 259 1928 .... 3 47 209 1929 .... .. 21 188 1930 .. .. i 1 27 160 1931 22 138 1932 ...... 27 111 1933 .. .... 13 98 1934 .. | .. .. 30 68 1935 .... .. 34 34 1936 .. .. .. 24 10 1937 .... • • 7 3 Totals.. 972 14 955 . I I I