“One of the most difficult questions which has presented itself to the board in the organisation and management of their staff in India has been how to meet the claims that have been constantly urged for the payment of pensions, after a given period of service, founded upon the analogy of the Indian services. The company’s permanent European staff consists of gentlemen drawn chiefly from the best-managed English lines. It is felt that without some provision being made for them in case of sickness, involving their retirement from the service, or in cases where, after a certain period of time, they may wish to retire, or when it may be considered desirable that they should do so, the railway service in India does not present sufficient attractions. Various schemes, with a view to make the service more popular, have been suggested, both here and in India; but, until recently, every proposition which has been made has been found, from one cause or other, to be impracticable. After much anxious consideration—and being satisfied of the almost insuperable difficulty of applying the principle of pensions to a constantly-varying service such as this must necessarily be—it has been thought that the best mode of meeting the difficulty is to establish a Provident Fund, in the advantages of which all the servants of the company, European and native, receiving a monthly pay of Rs. 30 and upwards shall participate, the Fund being supported by contributions from the staff, assisted by the company. It is proposed—1st. That the present staff shall contribute to the fund only if they think fit; but that all persons joining the service on or from a given date, with a monthly pay of Rs. 30, and those who may be promoted to this pay shall be required to do so. 2nd. That the staff shall be divided into two classes,—class A consisting of all European servants of the company, and class B comprising all servants of the company not Europeans. 3rd. That those in class A shall contribute 5 per cent., and those in class B 2½ per cent. on their respective monthly salaries or wages. 4th. That the company shall contribute annually 1 per cent. on the surplus net earnings, after 6 per cent. per annum has been appropriated to the company and the Government, in the terms of their contract, together with 1 per cent. on the 6 per cent. so appropriated, so far as the surplus will admit of the said contributions. 5th. That the moneys of the fund shall be invested, from time to time, either in Indian Government Securities or in the Railway Stock, and that, subject to rules and regulations to be prescribed by the board, the fund and all accruing interest shall be the property of the respective members of the staff in the ratio of their subscriptions.