2.
"retirement" aspect at all. Incidentally, we are puzzled by the words "not already refunded" in the first sentence of para. 15 of your note and would be grateful for clarification.
(h) Minimum period of contribution and age criteria;
To prevent late comers from benefitting, it seems desirable to stipulate a maximum age beyond which a person may not join the scheme or to draw the full benefits, even if he continues to contribute. The indications are that those aged 40 and over are more interested in this scheme than the younger groups. Accordingly, will it be necessary to debar those aged 55 or more from joining, and should there be special requirements for those aged 50 and over on first joining? It may be reasonable to allow sickness benefit if a person continues to contribute beyond 60, but we accept that the death benefit would not be payable after the 60th birthday.
(i) Limit of Contribution:
(j)
The maximum contribution of $40 each from employer and employee was based on an earnings ceiling of $2,000; this matched the limits prescribed by our employment and workmen's compensation legislation. It is likely that a new limit of $3,000 will be set shortly. Would a maximum contribution of $60 each from employer and employee have any effects on benefits payable, apart from the maximum sums involved?
Administrative Costs: The Green Paper proposed
that the Government should
meet the administrative costs of the scheme. Could you advise on the extent to which such a Government contribution is critical to the financial viability of the scheme?
In your letter to Thomas Lee, you kindly offered to arrange for one of your officers to visit Hong Kong so that we could discuss problems on the spot. We feel this would be most useful. Perhaps you would let us know how soon this might be arranged? We would suggest a visit of about a week in May or early June.
3.
As part of our assessment of public response to this scheme, we commissioned a public opinion survey in conjunction with the University of Hong Kong. A copy of this report is attached, in case any of these finds are material to your calculations.
/4. I shall