WEDNESDAY, NOVEMBER 12, 1986
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SET UP PROVIDENT FUND SCHEME FOR ELDERLY
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IT IS NOW THE RIGHT TIME TO MAKE PREPARATIONS FOR SETTING UP A PROVIDENT FUND SCHEME FOR THE ELDERLY AS WE CAN NO LONGER RELY SOLELY ON PUBLIC ASSISTANCE SERVICES TO SOLVE THEIR FINANCIAL PROBLEM, THE HON ROSANNA TAM SAID TODAY (WEDNESDAY).
SPEAKING DURING THE DEBATE ON ELDERLY SERVICES MRS TAM SAID THAT, THROUGH SOME SORT OF CONTRIBUTION TO THE SCHEME THE AGED COULD MAINTAIN A CERTAIN SOURCE OF FINANCIAL INDEPENDENCE AFTER RETIREMENT, THUS REDUCING THEIR RELIANCE ON SOCIETY,
SHE SUGGESTED THAT THE PROVIDENT FUND SCHEME BE ESTABLISHED THROUGH LEGISLATION.
+A COMPREHENSIVE PROVIDENT FUND SCHEME SHOULD BE PROMULGATED, REQUIRING EACH AND EVERY COMPANY TO ESTABLISH AND MANAGE ITS OWN SCHEME.
+ THE MOST IMPORTANT POINT IS THAT ACTION SHOULD BE TAKEN TO ENSURE THAT WHEN AN EMPLOYEE CHANGES JOB OR OCCUPATION, HIS PREVIOUS CONTRIBUTIONS AND YEARS OF SERVICE WILL BE PUT INTO THE RECORD, SHE SAID.
MRS TAM SAID SHE FIRMLY BELIEVED THAT THE ESTABLISHMENT OF A PROVIDENT FUND SCHEME WOULD NOT ONLY HELP SOLVE THE FINANCIAL PROBLEM OF THE AGED BUT ALSO INDUCE THE PUBLIC TO SAVE MORE MONEY AT A TIME WHEN HONG KONG WAS CONFRONTED WITH AN AGEING POPULATION.
SHE POINTED OUT THAT THE CRUX OF THE PRESENT PROBLEM OF THE ELDERLY LAY IN THE LACK OF FINANCIAL RESOURCES WHICH PROHIBITED OLD PEOPLE FROM CHOOSING THEIR PREFERRED WAY OF LIVING AND DEPRIVED THEM OF THEIR FAMILY AND SOCIAL STATUS.
THEY WERE EASILY NEGLECTED AND FORGOTTEN, SHE ADDED.
MRS TAM SAID BEFORE A PROVIDENT FUND SCHEME WAS SET UP. A FEASIBLE WAY TO IMPROVE THE ELDERLY'S LIVING CONDITION WAS TO REVIEW THE AMOUNT OF ASSISTANCE GIVEN TO THEM AND EXTEND THE SCOPE OF PUBLIC ASSISTANCE.
SHE PREDICTED THAT BY THE 21ST CENTURY, THE NUMBER OF OLD PEOPLE AGED 65 AND ABOVE WOULD INCREASE TO 720 000.
+BY THEN THE EXPENDITURE ON PROVIDING SUPPORT SERVICES TO THE ELDERLY WOULD INCREASE TO $8 BILLION WHICH WOULD POSE A CONSIDERABLE ECONOMIC BURDEN ON THE COMMUNITY, SHE SAID.
THEREFORE, SHE SAID THE INTRODUCTION OF A PROVIDENT FUND SCHEME WAS THE BEST LONG-TERM SOLUTION TO THE PROBLEM.
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