41
Provident Fund Scheme
16 -
28.
This scheme would establish a provident fund for the
Civil Service to cover the future service of both serving
The main features could be
officers and new
modelled on the
appointees.
Grant and Subsidized Schools Provident Fund
at Annex B.
Assuming
29.
eligibility
qualifying
that past service would count for
for withdrawal of benefits but would not count as
service for determining Government's contributions
under the Provident Fund Scheme, an estimate of the cashflow
requirements for such a Provident Fund Scheme, amounting to
some $6 billion
is at Annex C.
over the first six years at 1991/92 prices,
30.
There
establishing a
are
officers and new
service and does
substantial cashflow implications in
provident fund
appointees.
accrued by officers.
reduce its attraction
to see any
scheme for both serving
If it covers only future
not safeguard retirement benefits already
Its contributory nature would also
some staff, who would be reluctant
reduction in their take home pay. Moreover, the
to two years, required for its
effectiveness as a pension
lead time, say
one
establishment will limit its
safeguard, because it would by then be close to 1997.
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M