2374
THE NEW ZEALAND GAZETTE.
[No. 71

(iv) When promoted to warrant rank, the deferred pay which has
accrued to his credit by reason of his service before promotion,
plus accrued interest thereon to date of payment, will become
payable to an officer on the date when the engagement which is
current at the time of his promotion would have been completed
had he not been promoted, provided that where an engagement
or re-engagement has not been completed before a further
re-engagement has been entered into, deferred pay will be payable
on the date the original engagement or re-engagement would
have expired.

4. Deferred pay which has accrued to the credit of an officer will not
   be payable in the following circumstances, and will be forfeited to the
   Crown :—

(i) On resignation or retirement from the Active List before attaining
the age of 40 years, or if over the age of 40 years, if the officer
has completed less than 6 years’ service as Commissioned Officer,
Commissioned Officer from warrant rank, or Warrant Officer on
the Active List. The provisions of this subclause will not,
however, apply to sums which have accrued to the credit of
an officer prior to the date of his promotion to warrant rank.

(ii) On dismissal from the Service, with or without disgrace, by
sentence of Court-martial.

(iii) On being discharged “ Run.”

5. An officer whose services are dispensed with on account of misconduct,
   or who is invalided from the Service for causes due to misconduct or
   causes within his own control, will not be entitled to any payment on
   account of deferred pay, but the Naval Board will consider each case on its
   merits and may authorize payment to him of any sum not exceeding the
   amount of deferred pay to which he would otherwise have been entitled.

6. Deferred pay will be subject to any deductions for the time being
   in force on account of employment taxation.

7. Deferred pay will accumulate at compound interest at the rates in
   force from time to time and under the terms for crediting of interest on
   moneys invested in the Common Fund of the Public Trustee.

8. Deferred pay shall not be credited to an officer in either of the following
   circumstances :—

(i) During sick leave granted without pay.

(ii) When placed on the half-pay list.

(iii) When full hospital stoppages are enforced (Article 143, clause 3).

Article 134 : Cancel, and substitute :—

134. Deferred pay : Men.—Deferred pay shall be allowed to
     accumulate to the credit of every rating other than those serving under
     loan agreements (Category (ii), Article 50) at the following rates, which
     have been in force as from 1st July, 1936 :—

Rating or Relative Rating. Per
Diem.
s. d.
Chief Petty Officer over six years .. .. .. 2 10
Chief Petty Officer under six years .. .. .. 2 7
Petty Officer .. .. .. 2 3
Leading Seaman .. .. .. 2 0
Able Seaman .. .. .. 1 9
Ordinary Seaman (over 18) .. .. .. 1 3
Boy .. .. .. 0 6

2. Deferred pay will accumulate at compound interest at the rates in
   force from time to time and under the terms for crediting of interest on
   moneys invested in the Common Fund of the Public Trustee.

3. Deferred pay will be subject to any deductions for the time being in
   force on account of employment taxation.

4. Subject to the provisions of clauses 5 and 7, all deferred pay and
   accumulated interest standing to the credit of a rating may be paid to
   him—

(a) On completion of any engagement or re-engagement ; or

(b) On discharge from the Service ;

but any rating who re-engages for a further term of service may exercise
the option of allowing the amount which is standing to his credit on the
date when he completes his current engagement to remain so that it will
further accumulate by way of quarterly additions and compound interest
until he expresses his desire to withdraw it. Notwithstanding the pro-
visions of clause 5 (a), (d), and (e), every rating shall have a vested interest