- 3
MONDAY, NOVEMBER 16, 1992
GOVT GUARANTEE ON RETIREMENT BENEFITS IMPRACTICABLE
* * * * *
THE SUGGESTIONS THAT THE GOVERNMENT SHOULD PROVIDE A FINANCIAL BENEFITS GUARANTEE TO GUARD AGAINST THE POSSIBLE LOSS OF RETIREMENT
FOR THROUGH FRAUD OR BAD MANAGEMENT IS NOT PRACTICABLE, THE SECRETARY EDUCATION AND MANPOWER, MR JOHN CHAN, SAID.
THIS IS BECAUSE SUCH A GUARANTEE WOULD PRODUCE AN IMMENSE CONTINGENT LIABILITY FOR THE GOVERNMENT. IT MIGHT ALSO ENCOURAGE AGGRESSIVE OR UNSCRUPULOUS FUND MANAGEMENT.
WITH
"WE BELIEVE THAT THE OCCUPATIONAL RETIREMENT SCHEMES BILL, CURRENTLY BEFORE THE LEGISLATIVE COUNCIL, WILL EFFECTIVELY DEAL
MAIN AREAS OF CONCERN REGARDING THE SAFETY OF RETIREMENT BENEFITS, HE ADDED.
THE
"
OF ST
AT THE 42ND ANNUAL GENERAL MEETING SPEAKING
JAMES' SETTLEMENT TODAY (MONDAY), MR CHAN ALSO DISMISSED THE SUGGESTIONS THAT THE BENEFITS THE GOVERNMENT SHOULD MAKE A FINANCIAL CONTRIBUTION TO PAYABLE UNDER THE PROPOSED RETIREMENT PROTECTION SYSTEM.
HE SAID THE GOVERNMENT ALREADY PROVIDED A PUBLIC ASSISTANCE SCHEME AND A SPECIAL NEEDS ALLOWANCE SCHEME.
IN
RESIDENTIAL SUBSIDISED MEDICAL
ADDITION, THERE ARE ALSO COMMUNITY SUPPORT AND SERVICES FOR ELDERLY PERSONS, AS WELL AS HEAVILY CARE AND PUBLIC HOUSING FOR THOSE WHO NEED THEM.
"WHILE THESE SERVICES MAY NOT SEEM
то DIRECTLY RELATED PROTECTION OR OLD AGE BENEFITS, IN SOME COUNTRIES THEY RETIREMENT WOULD BE INCLUDED IN THE VALUE OF THE RETIREMENT PROTECTION MR CHAN SAID.
PACKAGE,
AS
THE BE
THERE IS NO INTENTION OF REMOVING THESE BENEFITS ONCE RETIREMENT PROTECTION SYSTEM IS INTRODUCED, THEN THEIR VALUE MUST
REVENUE AT TAKEN INTO ACCOUNT, AS THEY ARE PROVIDED THROUGH GENERAL MINIMAL OR NO COST TO THE RECIPIENT,**
A
SYSTEM UNDER THE PROPOSED COMMUNITY-WIDE RETIREMENT PROTECTION
IN UNVEILED BY
EMPLOYEES THE GOVERNMENT LAST MONTH, ALL
FULL-TIME EMPLOYMENT UNDER THE AGE OF 65 SHOULD BE REQUIRED TO PARTICIPATE IN
SET RETIREMENT PROTECTION SCHEME WHICH MEETS THE MINIMUM REQUIREMENTS OUT IN THE CONSULTATION PAPER, UNLESS THEY ARE SPECIFICALLY EXEMPTED.
THERE ARE ARGUMENTS THAT PERSONS EARNING A VERY LOW WAGE SHOULD NOT HAVE TO CONTRIBUTE TO THEIR RETIREMENT SCHEMES.
IN RESPONSE, MR CHAN SAID IT WOULD NOT BE POSSIBLE TO SELECT AN
FIGURE AS
THE
OF THE CUT-OFF WAGE FOR
PURPOSE
MAKING
ACCEPTABLE CONTRIBUTIONS.
FURTHERMORE,
EXEMPTED
HOW
FROM THEIR
IF
LOW-PAID EMPLOYEES WERE TO BE CONTRIBUTING, THEN THE QUESTION WOULD STILL REMAIN AS TO SHARE OF THE CONTRIBUTION SHOULD BE FUNDED.
/HE ALSO