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14-DEC-1993
19:16 14-DEL-1990 12:20
COMMS OFFICE (GOVT HOUSE)
852 500 3284
CVULATION & MANEL M
+ 952 81K 235
P.10
7.11
1
15.
Advocates
O
an CPS propose that 2
monthly
pension, pegged to an objective reference wage rate, should
be granted to all eligible senior citizens, thus providing
a guaranteed level of financial provision for old age. A
commonly suggested level is
of median wage, which
amounts
$2,200
30%
present. This would cost about $13.
billion per annum in the first year of operation.
16.
Many groups have suggested the OPS should be
funded through contributions, which should be made
compulsory and to be shared between emplovers and
employees, with or without Government contributions. Such
a scheme is commonly practised elsewhere, especially in
developed economies. It has clear advantages over a RPS
and a CFF :
first, it covers the entire population: retirees,
housewives, low-income earners and others who are
outside the workforce will be covered;
second, it provides immediate benefits as soon as
it is implemented;
third, it guarantees a minimum provision which may
be pegged to inflation or wages; and