(a)
CONFIDENTIAL
(ii) it reduces Government's pension liability in
the long term; and
(111)
it is administratively simple and is in line
Aita private sector practice.
Rate of Contribution and Level of Benefits
10.
is
2:3.
shared
between
At present, the total rate of WCPS contributions
Government and staff at the ratio of
lave asked that this be shared in equal
reasons for adjusting
Staff
Proportions. We see no Compelling
tae existing ratio of contribution,
costs.
which. would
increase
11.
GAD have advised that, for a voluntary WCPS which
provides the same level of benefits as the existing one, a
total contribution of 5.83% of salary would be required
from new members.
At the ratio of 2:3, this would
mean
2.33% from Government and
3.5% from staff.
However, for
serving members who opt to remain in the scheme, GAD's
advice is that they should
be
allowed
to continue
contribute
at
to
the existing rate of 35 as their benefits
under the scheme would remain unchanged.
12.
It is
proposed
that the
rate of
contributions
unger
the proposed voluntary
WCPS should
be set
on
the