of social security, a realistic assessment would have to be made of the commitments that employers were being asked to assume, from the point of view both of employers and of employees. Employers would, under- standably, resist the open-ended commitment implied in any statutory requirement to maintain the real value of benefits.
The role of occupational benefits in the programme of social security development
7.5
In due course, Government will consult employers' and employees' organizations, and other groups who are concerned about the future role of occupational benefits in Hong Kong. But, with the exception of what is said in Chapter 8 about contracting-out of the sickness, injury and death benefit scheme, the Government does not expect occupational benefits to play an enlarged role in the formal structure of social security nor that employers will be required, by law, to provide any further type of benefit.
7.6
The Government does not take this view primarily because of the financial obligations that would fall on employers, though this is an important factor. The main reason is that reliance on occupational benefits is unsatisfactory to employees and the self-employed. Occupational benefits provide flexibility and a valuable means of adding to social security cover. But, because they are linked to a particular employment, their continuance may depend on that employment. So, if an employee changes jobs or retires early, his benefit coverage may cease. Alternatively, he may remain in the same job, but the security of the benefits may be threatened by a decline in the prosperity of his employer or of the industry in which he is working. Another important consideration is that the coverage of occupational benefit schemes is limited and patchy - within Hong Kong as a whole, within particular industries and within a particular company. And the self- employed are not covered at all.
7.7
It might be possible, by introducing legislation to control the terms of membership, the benefit structure and other major scheme features, to satisfy many of the drawbacks of occupational benefit schemes which are outlined in the preceding paragraph. But even so occupational benefits would not play a major role in a social security structure which matches the needs of Hong Kong; the coverage of such schemes is too thin for that. An adequate system of social security must be centrally administered.
The future role of occupational benefits in Hong Kong
7.8
Nevertheless occupational benefit schemes have a role to play. Their flexible nature, which can be modified and developed to match the circumstances of particular companies or industries, can bring substantial benefit to scheme members and may be much valued by them. They can therefore form a very useful supplement to the social security system developed by the Government.
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