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arises regarding the treatment of the existing balances in the provident funds. It must be regarded as unquestionable that to release these balances, if this was possible, would be disastrous from many points of view including that of social security protection. In some circumstances, it might be considered expedient to continue the provident fund with any balance of contribution remaining after financing of the pension scheme. Complete transformation of the provident funds' credits into pensions contribution periods would not be acceptable, but could be made voluntary. The most likely solution would seem to be the freezing of the provident fund accounts, for payment under the prescribed conditions, and the payment of all subsequent contributions into the pension scheme.
is
13. Other countries without statutory provident funds may also see the advantages of starting pension schemes whilst the potential membership predominantly young. They may have additional strong reasons for doing so, such as the wish to generate funds for investment in national development plans. It is also for consideration whether public employees, who normally have their own pensions plan, should be brought into a national pension scheme. In some countries, this may be a complex question, which would involve governments in adopting a different system of funding of their employees' pensions, and in formulating supplementary pensions where the present standards are too high for a general scheme. advantages of assimilation of public employees are considerable in regard to the promotion of mobility of employment between the public and private sectors, and the furtherance of social solidarity. It would seem most likely that the transformation of provident funds into pension schemes would be made more generally acceptable if the public employees' systems also were merged
what would be more truly national schemes.
into
The
Unemployment benefit schemes
14. In spite of the serious nature of unemployment in the developing countries of Asia and the pressure for means of relieving hardship, it has been recognised that unemployment insurance is not the most effective measure for this purpose, being designed more for short spells of unemployment. Moreover, a large proportion of the unemployed are young persons, many seeking their first jobs, who would not qualify for benefits, however limited. There would be considerable danger in launching even a limited pilot scheme because of the inevitable strong pressure for liberalisation and extension beyond feasible limits. A profound analysis of the characteristics of the unemployment and underemployment situation, not easily obtainable in all countries, is necessary for the planning of a scheme, and an extensive interlocking administrative structure is needed if its operations are to be effective. Basically, an unemployment insurance scheme is not viable unless there are adequate job opportunities and a well-functioning network of employment exchange services, and it is obvious that schemes must follow on fundamental improvements in the employment situation in the developing countries.
Family benefits schemes
of
15. Family allowances which are usually in the form of payments in respect children below certain specified ages, help to combat a cause of poverty amongst low wage earners, and have some importance in the countries which operate schemes. The allowance may be universal and financed through the government budget, CI provided through contributary schemes for employees. Universal schemes must be regarded as too costly at the present stage of development of most countries, and also the burden of an employees' scheme would detract from the possibility of financing other social security measures, which may warrant a higher priority. Furthermore, although there is no evidence of a definite connection between family allowances and high birth rates, there is some opposition to schemes which contribute to the maintenance of children. In all of these circumstances, the introduction of family allowances schemes are not envisaged in the immediate future.
Extension of the scope of protection of persons
been
16. The scope of application of social security legislation has restricted by provisions relating to the size of undertakings, their geographical location, nature and status of employment, branches of economic activity, and level of remuneration. These have to be regarded as purely transitional limitations, to be removed as soon as conditions allow, otherwise a tendency to stagnation, observed
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