CONFIDENTIAL
4
Manufacturers' Association, the Federation of Hong Kong
Industries and the Hong Kong Employers' Association) put
forward the view that a scheme of individual insurance
arrangements by employers, supported by statutory requirements
might be examined. Concern was also expressed over the
exclusion of the self-employed (estimated at 100,000) from
the scheme proposed in the Green Paper and the Government
was urged to re-examine their position in any scheme which
might be implemented.
Actuarial Advice
8.
The U.K. Government Actuary's Department (GAD) has
given preliminary advice on the actuarial aspects of a semi-
voluntary scheme as proposed in the Green Paper, based on
the general assumption that such a scheme would be likely
to appeal more to older people. For sickness claim, in the
absence of any available information on incidence, British
experience was used and assumed that the proportion of
insured employees claiming sickness benefit would at any one
time rise from about 2% at the youngest ages to 2% at the
oldest ages for men, and from about 1% to 2% for women.
Briefly, actuarial advice is that the benefits proposed
can be supported with a contribution of 2% from both employer
and employee. Because of the voluntary nature of the
proposed scheme, it would be necessary to set aside the
employee's contribution effectively to form a provident
fund to meet withdrawals and return of contributions (plus
interest) to participants on retirement. Benefits would
have to be provided for by employers' contributions.
advice on other aspects is referred to elsewhere in this
CONFIDENTIAL
/memorandum
GAD's