CONFIDENTIAL
(ii) Principles adopted elsewhere in respect of the
provision of a financial guarantee are -
(a) users pay for the cost which varies from time to time in accordance with prevailing circumstances; and (b) protection is only up to a defined
limit (i.e. not 100% protection).
XCCI(93)34
Other Proposals
8
While analysing the views expressed in the public response to the consultation paper, Government has noted a number of proposals which fall outside the ambit of employment related retirement protection systems. These include -
(a)
(b)
(c)
a universal pension system which would provide immediate benefits for all eligible persons, at a guaranteed minimum level;
a "pay as you go" tripartite (Government, employers, employees) contribution system which would provide a guaranteed minimum pension to non-contributors and an enhanced pension to contributors; and
enhanced social security payments.
Proposals (a) and (b) involve a substantial element of income redistribution which would be controversial. Social security payments have just been enhanced in July this year.
The Way Forward
9
In giving careful consideration to the issues and options raised above, the Administration will be guided by the following fundamental principles -
Executive Council