T
CONFIDENTIAL
memorandum.
It is proposed that an officer from GAD should
visit Hong Kong later in the year to give further actuarial
advice, if a scheme is to be proceeded with.
The Options
9.
The response to the Green Paper shows a clear consensus
The only substantial
for better protection for employees.
difference of view is on the method of providing that coverage.
Three main options have emerged:
(a) an employers' scheme embodying individual insurance
arrangements by employers supported by statutory
requirements;
(b)
(c)
a semi-voluntary contributory scheme as proposed
in the Green Paper; and
a fully compulsory contributory scheme.
Employers' Scheme
10.
The Joint Associations Committee (with the Chinese
Manufacturers Association reserving their position) has
suggested that it may be possible to develop an alternative
to a Government scheme as proposed in the Green Paper. Under
this proposal an obligation to provide broadly equivalent
benefits would be imposed on employers by law. A copy of
of the Association's letter is at Annex C. Although this
letter is worded vaguely, the Commissioner for Labour has
clarified in a subsequent discussion with the Secretary
of the Association that their view is that additional
sickness and death benefits might be provided through
individual insurance arrangements by employers, who would
be obliged by law to provide such benefits. There would be
no contributions from employees and for those employers
already providing some or all such benefits, there would be
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