CORRESPONDENCE.

Wairarapa Daily Times, Volume 5, Issue 1445, 1 August 1883, Page 2

CORRESPONDENCE.

FORESTER, "THE SYSTEM IS WRONG."

{TO THE EDITOR; OF. THE DAILY.] . Sir,— " Forester's", reply to your, leader is not' sufficiently explicit to enlighten the uninitiated, and as the proper management of our Friendly Societies is of vital importance to a large section of the community —more especially as a mutual system of providence for oia age is likely to grow out of them—Twill.' endeavor to. explain what tho Government actuarial system really is, -The solvency or otherwise of a friendly society is determined by taking the present value of the contributions they may expect to receive from the existing, member, and substracting this : from the present value of the benefits they will probably have to pay to the Bame members, assuming them to remain in the society till they .die. .. The difference should be'covered "by the to the credit of the fund,(pluß share of District .Funeral Fund), or else the Lodge is actuarily bankrupt. ■ " " .The Registrar-General's report shews %.fGreßteraV'''•■system' 1 ' to ; be wrong, tbjiip periodical contributions are nof; sufficjept to jnept the obligations which*. they undertake, and it is desirable.':tl)at ' tjieip scale of periodicaF payments bo raised so as to put existing Lodges in a sound finanoial'position. I am, etc,, P-