11
to
establish a one-year
should be further pursued.
roll forward pension reserve fund
FINANCIAL IMPLICATIONS
28.
initially
to
HK$ 3 billion will be required
establish a one-year roll forward pension reserve fund.
Assuming a return of 10% per annum on the Reserve Fund, it
would require an annual top-up by Government of up to $0.65
billion up
year 2001-02, by which time the size of the
fund would be about HK$12 billion. The fund would be around
$8 billion in 1997/98.
to
STAFF REACTION
29.
A one year pension reserve cannot fully meet deep
seated staff concerns about the security of pensions. Staff
may press for a three or five year roll forward fund
instead. Whilst this could not be agreed, it would be argued
that Government has done what it can to address staff
This would carry some
concerns.
weight with staff as we
be
would
seen as reacting in a
shared concerns.
positive way to a widely
Failure to address the pension safeguards
issue on the other hand would have a serious adverse effect
on the confidence and morale of the Civil Service.