In 1893 a combined assurance and annuity scheme for Civil servants was initiated. In return for monthly deductions (amounting to about £5 annually for every £100 of salary the Insurance Department contracts to give a uniform initial insurance of £100 (increasing with the salary) until the age of sixty is attained, and after that age an annuity varying with the age at entry. Those who elect to pay a small extra premium can have the assurance continued beyond age 60 until death. These policies, placed in a separate table, are merged in the general business of the Department, and share in the periodical distributions of profits, At successive valuations the necessary reserves are made to fully cover the liability which has accrued upon each of the contracts, and consequently there is no danger of future trouble in connection with this scheme such as has overtaken so many pension schemes as the result of inefficient conception and inexpert administration.

The following statement shows approximately the branches of the Service from which this large premium income is derived:—

	Yearly Premium.
Railways	15,300
Post and Telegraphs	7,800
Education	5,600
Police Force	2,000
Other Departments (per Treasury)	8,300
Voluntary assurance premiums	39,000
Compulsory assurance premiums (Under Civil Service Insurance Act)	5,800
Total	£44,800