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WEDNESDAY, MAY 13, 1987
MRS TAM SAID THE IMPLEMENTATION OF SUCH A PROVIDENT FUND SCHEME COULD NOT BE ACHIEVED BY MERELY ENCOURAGING THE EMPLOYERS TO SET UP THEIR OWN SCHEMES ON A VOLUNTARY BASIS. OTHERWISE, AT THE CURRENT RATE OF 50 NEW SCHEMES BEING SET UP EACH MONTH. IT WOULD TAKE A VERY LONG TIME FOR ALL THE 200 000 ESTABLISHMENTS, IN PARTICULAR THOSE SMALL AND MEDIUM-SIZED ENTERPRISES, TO ACCOMPLISH THEIR OWN SCHEMES.
SHE BELIEVED THE MOST APPROPRIATE APPROACH WAS TO REQUIRE ALL EMPLOYERS OF DIFFERENT SIZES OF ORGANISATIONS TO ESTABLISH PROVIDENT FUND SCHEMES THROUGH LEGISLATION.
SHE SAID SUCH PROVIDENT FUND SHOULD HAVE FIVE CHARACTERISTICS.
FIRSTLY, ALL PRIVATE ENTERPRISES IN HONG KONG SHOULD BE REQUIRED BY LEGISLATION TO ESTABLISH PROVIDENT FUNDS WITH CONTRIBUTIONS FROM BOTH THE EMPLOYERS AND EMPLOYEES.
SECONDLY, TO FACILITATE THE IMPLEMENTATION, A GRADUAL APPROACH SHOULD BE ADOPTED IN STAGES STARTING WITH THE LARGE ENTERPRISES AND FOLLOWED BY MEDIUM AND SMALL-SIZED ENTERPRISES.
THIRDLY, A STANDARD REQUIREMENT FOR ALL PROVIDENT FUND SCHEMES SHOULD BE LAID DOWN BY LEGISLATION.
FOURTHLY, IN THE EVENT OF TERMINATION OF EMPLOYMENT, THE EMPLOYEE'S PREVIOUS CONTRIBUTIONS SHOULD BE TRANSFERABLE TO HIS NEW FUND.
FIFTHLY, INDIVIDUAL ENTERPRISE COULD ENGAGE INSURANCE COMPANIES OR FINANCIAL FIRMS TO MANAGE THEIR OWN FUNDS.
MRS TAM REITERATED THAT HONG KONG SHOULD ACTIVELY CONSIDER HOW TO ESTABLISH A PROVIDENT SCHEME.
SHE BELIEVED THIS WOULD HELP SOLVE THE PROBLEMS OF SOCIAL SECURITY FOR THE RETIRED WORKERS, OF THE PRESSURE OF AN AGING POPULATION AND OF THE MAINTENANCE OF SOCIAL STABILITY FOR THE NEXT TEN YEARS TO COME.
+1 AM IN FULL SUPPORT OF THE PROPOSAL TO SET UP A COMMISSION BY THE GOVERNMENT TO STUDY THE ESTABLISHMENT OF A COMPULSORY PROVIDENT FUND, SHE SAID.
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