Pension Adjustments to be made a statutory right
20.
The second proposal is to make pension adjusgments
against price inflation a statutory
staff request.
Since 1976, pension
right in response to
adjustments have been
granted annually without fail, on the basis of the movement
of the Consumer Price Index
A.
They
serve to maintain the
It would be
be a very
original purchasing power of pensions.
drastic course of action if in future pensioners
denied adjustments
budgetary reasons.
were to be were
against price inflation, even for
Since the New Pension Scheme has made
pension benefits a right, it is only logical that pension
adjustments should also be paid as of right and the method of
adjustment be statutorily provided for in the pension
increase ordinances.
21.
The proposal to embody the current administrative
practice for pension adjustments in legislation does not have
additional financial and staffing implications. The proposal
could help, in a small way, address the staff concerns about
security of pensions.
(C)
Technical amendments to the pensions legislation
22.
The third proposal involves making a number of
technical amendments to the pensions legislation.
The HKG is