CONFIDENTIAL
The Hong
operation
Kong
Government
has also been monitoring the
ot the New Pension Scheme and considering other
measures which might be introduced to improve the existing PENSION arrangements.
result there are a number of
As
modifications which the HKG intends to introduce. We should
ilke to take this opportunity to inform the Chinese Side of
the proposed changes.
(a)
Dependant Pensions benefits
16.
The first proposal is in
relation
to dependant
There are a number of areas
in
anu Lelated benefits.
which these benefits are
unsatisfactory.
For example,
discriminatory with advantages
ana Sometimes women.
out of date and considered
some of the provisions are
sometimes accruing in favour
In the case of the dependant
We
pensions schemes, the feature of compulsory contributions by
15 also no longer in keeping with modern practice.
nave, at the request of staff, reviewed the existing
arrangements. Having regard to private sector practice and
consultation with staff, proposals for change have been
Ivrmulateu. These are set out in the third paper passed to the Chinese Side earlier (Paper 3).
10
17.
Among the proposed changes, the most important will
be the conversion of the existing compulsory dependant
pension schemes into voluntary ones. This is in keeping with
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F