TUESDAY, JANUARY 18, 1983
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EXPANSION OF SCOPE OF SPECIAL NEEDS ALLOWANCES PROPOSED
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THE GOVERNMENT IS PROPOSING TO EXPAND THE SCOPE OF SPECIAL NEEDS ALLOWANCES BY INCLUDING A DEATH GRANT OF $3 000 TO HELP BEREAVED FAMILIES ADJUST TO NEW CIRCUMSTANCES.
THE GRANT WILL BE PROVIDED BY THE EMPLOYER WHERE THE EMPLOYEE DIES AFTER MORE THAN 12 MONTHS CONTINUOUS SERVICE AND FROM GENERAL REVENUE FOR THOSE WHO DO NOT HAVE THIS LENGTH OF SERVICE, FOR THE SELF-EMPLOYED, AND FOR THOSE NOT IN EMPLOYMENT BUT ARE LOOKING AFTER DEPENDANTS.
IN A REVIEW OF SOCIAL SECURITY BENEFITS AT A LUNCHEON MEETING OF THE LIFE UNDERWRITERS ASSOCIATION TODAY, THE SECRETARY FOR SOCIAL SERVICES, MR ERIC HO POINTED OUT THAT APART FROM OCCUPATIONAL BENEFITS PROVIDED BY EMPLOYERS, THE WHOLE RANGE OF SOCIAL SECURITY BENEFITS AVAILABLE IN HONG KONG ARE NON-CONTRIBUTORY.
HE ALSO EXPLAINED THAT LACK OF INSURANCE HABIT IN OUR COMMUNITY WAS A SIGNIFICANT REASON WHY THE GOVERNMENT DOUBTED THE SEMI-VOLUNTARY CONTRIBUTORY SICKNESS, INJURY AND DEATH BENEFIT SCHEME WOULD WORK.
A SURVEY WHICH COVERED 560 ESTABLISHMENTS AND INVOLVING INTERVIEWS WITH 2 089 EMPLOYEES IN VARIOUS OCCUPATIONS AND INDUSTRIES INDICATED THAT ONLY 4.2 PER CENT OF EMPLOYEES HAD LIFE INSURANCE POLICIES, 1.5 PER CENT BOUGHT MEDICAL INSURANCE AND 1 PER CENT SICKNESS INSURANCE.
IN THE LIGHT OF THESE FACTS, ANY PRUDENT GOVERNMENT WILL HAVE TO ACCEPT THAT A SOCIAL INSURANCE SCHEME OF A VOLUNTARY NATURE IS NOT LIKELY TO ATTRACT MUCH HIGHER PERCENTAGES OF PARTICIPANTS, OR A REASONABLE SPREAD OF RISKS, HE SAID.
AS AN ALTERNATIVE TO THE SCHEME, IT WAS SUGGESTED THAT EMPLOYEES SHOULD BE PROVIDED WITH ADDITIONAL BENEFITS AND ACCORDINGLY A BILL IS NOW AT AN ADVANCED STAGE OF DRAFTING WHICH WILL INCREASE THE MAXIMUM SICKNESS BENEFIT FROM THE PRESENT 36 DAYS TO 120 DAYS DEPENDING ON LENGTH OF SERVICE, AND PROVIDE FOR THE DEATH GRANT.
MR HO ALSO EXPLAINED THAT THERE WERE NO PLANS FOR THE ESTABLISHMENT OF A CENTRAL PROVIDENT FUND BECAUSE IT WAS NOT PART OF OUR STRATEGY IN THE DEVELOPMENT OF OUR SOCIAL SECURITY, AND NOT BECAUSE OF POLITICAL UNCERTAINTIES.
IN SINGAPORE, EMPLOYEES AND THEIR EMPLOYERS CONTRIBUTE 22 TO 23 PER CENT OF WAGES TOWARDS THE IR CENTRAL PROVIDENT FUND BUT WHEN THEY RETIRED, CONTRIBUTORS WILL HAVE GOT LITTLE BEYOND THE FLAT THEY OCCUPIED. IN HONG KONG, WE ALREADY HAVE A HOME OWNERSHIP SCHEME AND OUR AMBITIOUS PUBLIC HOUSING IS
IN FULL STRIDE, HE SAID.
/: AM