It is with, some diffidence that we venture to submit to the Institute a paper on the subject of Pension Funds; indeed, after again perusing the masterly essays on this important subject which Mr. Manly and Mr. King have given to us it appears almost presumptuous to add anything further. Valuable papers have also been contributed by other members of our Institute. Thus Mr. James McGowan in vol. xxxvii of the Journal dealt with the subject of Pension Funds more or less generally, and supplied us with a very large number of formulæ. Mr. James Bacon in vol. xlii dealt with the construction of Salary Scales, whilst Mr. E. C. Thomas and Mr. Thomas Tinner (see J.I.A., vols. xlviii and xliv) both supplied formulæ intended to meet difficulties arising in certain events. With regard to benefit societies, Sir Alfred Watson's paper (J.I.A., vol. xliv) on this important branch of the subject may be taken as a text book.

In this note 1 submit for discussion two questions in connection with limited-payment policies: (1) by what method should the office premiums be calculated, and (2) how should the policies be valued. Neither of these questions appears to have been brought—except incidentally—before the Institute; both are of some practical importance in view of the large amount of limited-payment business transacted in the United Kingdom; and in regard to both there seem to be greater differences in practice than would be justified by theory. The following remarks refer more particularly to participating policies of the kind issued by the majority of British companies—that is to say, policies entitled throughout their currency to the same reversionary bonuses as similar ordinary whole-life policies—but similar considerations would apply to non-participating policies.