147DEC-1990 19:17
COMMS OFFICE (GOVT HOUSE)
602 530 3284
P.11
10
fourth, the rates of contribution for employers
and employees are likely to be lower, compared to
a RPS or CPF.
17.
Since ༣ contributory OPS functions On tho principle of the working population supporting the aged, it does have some problems :
first, it has all the disadvantages of
compulsory
contributions,
smaller scale;
although
Of a
second, the contribution
time
rate would go up in as the ratio of the working population to the aged declincs. This has created problems in quite a number of countries in Europe, for example;
third, those who have already joined private retirement schemes will see it as an additional burden as they cannot opt out; and
fourth, enforcement
of contributions might be
problematis given that the eventual benefit is
not related to the level of contribution.
Page 15Page 16