3
month of absence, i.e. only after a period of 30 days absence. This would be consistent with the waiting period required of able-bodied unemployed adults under the PA scheme. In view of the uncertainties of funding, it seems prudent not to provide for higher benefits than the three months originally proposed. We do not want to
risk having to increase the level of contributions because the fund becomes insolvent.
10.
With regard to paragraph 12 of the GAD's note, medical certification is required for sickness pay under the Employment Ordinance. Certificates are provided by registered medical practitioners, who are subject to the normal disciplinary rules. Thus, in theory, they can cover the new scheme in the same way. However, in practice, it will be very difficult to prevent malingerers from taking advantage of the scheme. This makes a flat waiting period of 30 days even more desirable.
Return of Contributions
11.
We feel that a return of the employees' contributions plus interest should be permitted at any time, subject to a period of notice. We consider three months to be reasonable.
Employers' contributions will not be returnable in the light of GAD's advice that this should be set aside to provide for sickness, injury and death benefits.
No Claim Bonus
12. dropped.
We accept GAD's advice that this should be
Retirement Benefit
13.
As advised by GAD, this is in essence enforced savings by the employee, who will only receive a return of his own contribution, plus interest. It would probably be best not to call this a "retirement" benefit, to avoid misleading the public, although GAD has advised that, in due course, it may be possible to pay an additional lump sum related to the period of contribution.
Maximum Contribution
14.
The earnings ceiling of $2,000 a month under the Employment Ordinance (on which the maximum contribution was based) is likely to go up to $3,000. We have asked for advice on the actuarial effects of this new limit on the benefits to be provided.
Age Criteria and Minimum Period of Contribution
15.
To ensure the viability of the scheme, it is necessary to prevent elderly persons from joining the scheme and collecting benefits after a short period of contribution. The survey referred to above indicates that support for the scheme seems strongest from those aged 40 and above. Are special stipulations needed for those first joining after their 50th birthday? Is is
/advisable