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Methods of calculating benefits, particularly for permanent disability, remain a serious problem for both private and government plans of disability insurance. Professor Ison analyses some of the methods in use. His evaluation includes not only the financial implications to recipients of alternative methods of calculation, but also the social costs and the probable effects on the physical and mental health and the morale of claimants. His critique concludes by suggesting a combination of two methods to provide the optimum solution to the problems identified.