CONFIDENTIAL #
4
may in addition be Chinese
objections
and
fears about
encouraging civil servants to retire. We had difficulty in
obtaining Chinese agreement in 1986 to the proposal to
increase the commutation rate to 50% under the New Pension
Scheme.
Provident Fund Scheme
9.
This scheme
would
establish a provident fund for
the Civil Service to cover the future service of both serving
officers and new appointees.
The main features could be
modelled on the Grant and Subsidized Schools Provident Fund
Annex B
at Annex B.
10.
Assuming
that past service would count for
eligibility for withdrawal of benefits but would not count as
qualifying
under the
requirements
service for determining Government's contributions
Provident Fund Scheme, an estimate of the cashflow
for such a Provident Fund Scheme, amounting to
some $6 billion
over the first six years at 1991/92 prices,
Annex C
is at Annex C.
There are substantial
11.
establishing a
officers and
new
provident fund
appointees.
cashflow
implications in
scheme for both serving
If it covers only future
G.F. 326
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