*
c) Contribution
:
8.12
Employers and employees would contribute equal amounts. The aim would be to keep each contribution dom to about 2% of earnings, subject to a maximum contribution (or earnings ceiling) which could be adjusted from time to time. For example, if the maximum contribution were $40 a month, contributions would be paid as follows :-
2%
earnings $1,000 a month
earnings $2,000 a month
earnings $3,000 a month
monthly contribution of $20 from employee and $20 from employer monthly contribution of $40 from employee and $40 from employer
monthly contribution of $40 from employee and $40 from employer
2%
8.13
If the scheme were to be adopted, the Government would examine the possibility of enabling employees to make additional voluntary contri- butions to the scheme to secure a higher rate of benefit, but without any liability on the employer to match the employee's extra contribution.
a) Benefits provided by scheme
8.74
The sickness and injury benefit would be paid in respect of the second, third and fourth months away from work (the first month being regarded as covered by sickness allowance payable under the Employment Ordinance) to any person who had been a member for at least 6 months. To qualify, a medical certificate would be necessary. The amount of sickness and injury benefit might be about half "normal pay" excluding overtime (subject to the earnings ceiling mentioned in para. 8.12). "Normal pay"} for this purpose would be the beneficiary's average monthly pay during previous 12 months.
8.15
If the member died before the age of 60, a lump sum death benefit would be payable. A lump sum of up to six months pay might be possible. On reaching the age of 60, there might be a small retirement benefit; this would be in the nature of a "no claims" bonus and would therefore be less if a member had received more than a specified amount of benefit before reaching retirement. How much benefit would be payable would depend on an actuarial costing but it is likely to be of the same order as the death benefit. The amount of lump sum payable would probably be related to the average earnings of the beneficiary for the three years ending on his 59th birthday or (in the case of death benefit) the three years before his death.
8.16
The scheme might also provide a housing loan facility, after 5 years as a contributing member, The maximum amount available might be based on a formula linked to the total of contributions already made to the scheme, so that what was drawn out of the scheme was in proportion to what had been put in. The amount borrowed would have to be repaid: otherwise the value of the protection provided by the scheme would be diminished. To be fair to other scheme members, a reasonable rate of interest would have to be paid. The sum available might be sufficient for a downpayment on a small flat.
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