13
22.
introduced in January 1986 as a
The LSP was
s om e protection
measure to provide
for elderly
employees who are
operation, employers indicated their willingness to
dismissed. After only a year of
extend the scheme to cover
retirement through old age
or ill health, and to extend payment to
to extend payment to the families
of
deceased
in this way
workers.
Legislation to extend the
scheme will be put to this Council shortly.
•
35.
The
advan ta ges of the LSP
to the
are
beneficiaries
not sufficiently appreciated.
First, it is non-contributory, thus avoiding any
and I think most important initial reduction in take home pay. Secondly, it is
based on final salary, so its value is not eroded by
inflation during the period of reckonable service.
Thirdly, it is retroactive, SO that service before
the law came into effect count towards the scheme.
24.
is
по
The LSP scheme at present does have two
limitations, which members have not been slow to
mention. Firstly, the conditions under which it is
payable are rather restricted; second, there
requirement at present for an employer to fund his
liabilities under the scheme. On the first point,
the coverage of the scheme will be extended
considerably by the forthcoming amendments,
amendments, and it is
our intention that further improvements will be made,
as fast and as far
as
Our
economic
circumstances