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HONG KONG LEGISLATIVE COUNCIL 11 May 1988
(t) in Part XX by adding the following-
*2. The adjusted pension under paragraph 1 may be further increased
by 6 per cent.'; and
(u) by adding the following after Part XX-
'PART XXI
Applicable to a basic pension based on a salary in force from 1 April 1987 to 31 March 1988 inclusive
1. The basic pension may be increased by 6 per cent.'.
He said: Sir, I move the first motion standing in my name on the Order Paper.
The Government's declared policy is to maintain the original purchasing power of civil service pensions, including pensions payable under the Widows and Orphans Pension Scheme and under the Widows' and Children's Pensions Scheme. This is achieved by periodic pension adjustments in line with move- ments in the Consumer Price Index (A).
Sir, during the latest review period from 1 April 1987 to 31 March 1988, the moving annual average of the Consumer Price Index (A) rose by 6.5 points or 6.2 per cent. In line with established practice, it is proposed that a pension increase of 6 per cent should be awarded with effect from 1 April 1988.
The total cost of increasing all pensions by 6 per cent is estimated at $49.8 million for a full year. This is a statutory charge which may be authorised by resolution of this Council under the appropriate Ordinances.
Sir, I beg to move.
Question proposed, put and agreed to.
WIDOWS AND ORPHANS PENSION (INCREASE) ORDINANCE
THE CHIEF SECRETARY moved the following motion: That the Schedule to the Widows and Orphans Pension (Increase) Ordinance be amended by adding the following---
'44. The pension calculated on the total contributions up to 31 March 1987 inclusive plus the total increases in pension up to 31 March 1988 may be increased by 6 per cent with effect from 1 April 1988.
45. The pension calculated on contributions from 1 April 1987 to 31 March 1988 inclusive may be increased by 6 per cent with effect from 1 April 1988.'.
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