SECRET
FM HONG KONG
TO DESKBY 02130OZ FCO
TELNO 2816
OF 02121OZ DECEMBER 92
SECRET
HKA 016/1
AND TO IMMEDIATE UKREP JLG HONG KONG
PERSONAL FOR RICKETTS, HKD. SERVICE.
MIPT: LOCAL PENSION SAFEGUARDS:
98
124441
MDHIAN 0327
TOP COPY Q DIST ?
ра
FROM SECRETARY FOR THE CIVIL
SPEAKING NOTE FOR SCS TO BRIEF
STAFF PENSION SAFEGUARDS AND EXTENSION OF THE NPS OPTION DEADLINE.
INTRODUCTION
AS YOU KNOW WE HAVE BEEN STUDYING VARIOUS PENSION SAFEGUARD SUGGESTIONS. THESE INCLUDE:
(A) GREATER COMMUTATION:
(B) A PROVIDENT FUND SCHEME FOR FUTURE SERVICE:
(C)
(D)
(E)
AN 'HYPOTHECATED PENSION FUND SCHEME AND VARIOUS OTHER PRIVATE SECTOR OPTIONS:
VARIOUS PENSION SAFEGUARDS OPTIONS RELATING TO HOUSING
BENEFITS: AND
PARTIAL FUNDING.
PENSION SAFEGUARDS.
2. WE HAVE LOOKED AT ALL OPTIONS. THERE ARE NO EASY SOLUTIONS. AS YOU KNOW PENSIONS ARE A STATUTORY RIGHT AND A STATUTORY CHARGE ON THE GENERAL REVENUE. IN ADDITION WE HAVE JUST INTRODUCED LEGISLATION INTO LEGCO PROPOSING THAT ANNUAL PENSION INCREASES IN LINE WITH INFLATION BE MADE A STATUTORY RIGHT. THE JOINT DECLARATION AND THE BASIC LAW PROVIDE SPECIFIC GUARANTEES FOR THE CONTINUED PAYMENT OF PENSIONS ON TERMS NO LESS FAVOURABLE THEN BEFORE. NEVERTHELESS WE ALSO RECOGNISE THE STRENGTH OF STAFF FEELING ON THIS ISSUE AND UNDERSTAND THAT STAFF CONCERNS ARE A
MATTER OF PSYCHOLOGY AS WELL AS LOGIC.
3.
THE GREATER COMMUTATION, PROVIDENT FUND SCHEME FOR FUTURE SERVICE, HYPOTHECATED PENSION FUND SCHEME AND THE HOUSING RELATED SUGGESTIONS ARE NOT FEASIBLE OPTIONS FOR THE GOVERNMENT AND DO NOT REALLY PROVIDE A PENSION SAFEGUARD. WE DO NOT INTEND TO
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