employee under other statutory schemes -e. g. the Employees' Compensation Ordinance or if he is contributing to any death, retirement or insurance scheme which would provide dependant survivors with cash benefits of $3,000 or more, or if the death attracts a similar or higher payment under any statutory or administrative scheme (e.g. Traffic Accident Victims Assistance). If the employer has contributed towards any scheme which provided dependant survivors with cash benefits of less than $3,000, he would only be required to pay the balance. For the purpose of this paragraph "dependants" should have the same meaning as defined in the Employees' Compensation Ordinance. The death, retirement or insurance scheme refers only to formal insurance schemes to which the employer has contributed and should not include any private schemes which the employee has taken out of his own or any ex-gratia payment or token sum that the employer may choose to give to dependant survivors.

18

It is further proposed that as soon as the above amendment to the Employment Ordinance is brought into effect a death grant of $3,000 should be made payable on a non-means-tested basis under the Special Needs Allowance to dependant survivors under the following conditions

(a)

(b)

in the case of an employee whose death occurred while still in employment but who has not satisfied the qualifying period of one year of continuous service provided that he has lived continuously in Hong Kong for a period of one year immediately before death;

in any other case where a death grant is not otherwise payable by the employer, provided that the deceased:

(i) had resided continuously in Hong Kong for a period

of one year immediately before death; and

(ii) had financially supported them; or

(iii) although not financially supporting the family, had been living with them and responsible for looking after young children or bed-ridden members of the family.

The death grant under SNA is set at $3,000 to maintain uniformity with the death grant to be provided by the employers and will be revised in accordance with any adjustment made on the employers' liabilities. However, the death grant under SNA will not be payable if the death attracts a similar or higher payment under any death retirement or insurance scheme to which the employer has contributed or any statutory or administrative schemes such as the Traffic Accident Victims Assistance Scheme or Criminal and Law Enforcement Injuries Compensation Scheme. If the dependant survivors already received benefits of an amount less than $3,000 arising from any insurance scheme to which the employer has contributed, the death grant payable under SNA would only constitute the balance. The insurance scheme referred to in this paragraph should have the same meaning as in paragraph 17 above.

CONFIDENTIAL **

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