CONFIDENTIAL
PAPER FOR DISCUSSION WITH STAFF
PENSION SAFEGUARDS
General Statement
1.
Hong Kong
Government
believes that
pensions
are
secure. Pensions are both a statutory right, and a statutory
charge on the General Revenue. The Joint Declaration and the
Basic Law provide that this legislation will continue in
force after 1997. They also contain specific guarantees that
SARG shall pay pension benefits due to pensioners
irrespective of nationality or place of residence, on terms
no less favourable than before.
In practice, Government
the
should have little difficulty in discharging its legal
pensions obligations.
twelve years is forecast to represent only about 4% 5% of
Government's recurrent annual operating expenditure.
Pensions expenditure over the next
2.
security,
In view of staff's concerns on the issue of pension
the Administration has considered various proposals
for pension safeguards which include
(a)
an hypothecated pension fund scheme; and
(b)
higher commutation of pensions;
(c)
(d)
a Provident Fund Scheme for civil servants;
partial funding of pensions.
CONFIDENTIAL