50
The main aims of the scheme would be to provide a monthly benefit for
those off work longer than the period of 36 paid sickness days provided
under the Employment Ordinance; and a lump sum for the heirs of those
dying before the age of 60. In each case the benefit would be based
on the contributor's previous earnings. Subject to actuarial advice,
there might also be room within the scheme for a housing loan facility.
The contribution rate would be kept low perhaps at the rate of 2% of
earnings from employer and employee alike. The Government would pay for
the administrative costs and perhaps provide initial priming for the
scheme's funds. But in general the scheme would be self-financing.
A significant feature of the proposal is that it would be up to each
employee whether he wished to join, but if he did so his employer would
have to pay contributions too unless he were contracted out of the
scheme. The employer could contract out if he already provided benefits
such as would be conferred under the scheme.
126.
This scheme would cater for an area of need, which cannot be
met satisfactorily through the Public Assistance Scheme because the
persons concerned or their families have means above the level of
eligibility for public assistance, but are not so far above it as to
be insulated against the financial effects on the family of the prolonged
sickness or death of a bread-winner. Moreover, there may be some who
though within the income level eligible for public assistance would
prefer to insure themselves in this alternative way.
127.
As Honourable Members will appreciate the proposed scheme
differs from the sort of social insurance scheme found in many countries.
since it will be up to employees whether they join or not. Moreover
such a scheme does not exist in a community with such extensive
non-contributory social security coverage'as Hong Kong will have.
/The demand