نيا
WEDNESDAY, NOVEMBER 18, 1992
THE
ARE
ΤΟ
ONE AND
THE SECOND POINT ON WHICH I SHOULD LIKE TO SPEAK CONCERNS NEED FOR PROTECTION FOR THOSE MEMBERS OF THE COMMUNITY WHO APPROACHING OR HAVE ALREADY PASSED RETIREMENT. IT IS ESSENTIAL DIFFERENTIATE BETWEEN SOCIAL SECURITY AND SOCIAL SERVICES, ON THE HAND, AND MAKING FINANCIAL PROVISION FOR OLD AGE THROUGH SAVINGS RETIREMENT SCHEMES, ON THE OTHER. WHAT THE WORKING GROUP ON RETIREMENT PROTECTION IS PROPOSING IS AN EMPLOYMENT RELATED RETIREMENT PROTECTION SYSTEM, WHICH WOULD PROVIDE COVERAGE FOR THOSE IN THE WORKFORCE. IT IS IN THE NATURE OF RETIREMENT PROTECTION SCHEMES THAT BENEFITS OUR PROPORTIONATE TO THE SIZE AND DURATION OF CONTRIBUTIONS. THIS DOES NOT MEAN, HOWEVER, THAT NO CONSIDERATION HAS BEEN GIVEN BY THE WORKING GROUP TO THE NEEDS OF THOSE WHO WILL BE APPROACHING RETIREMENT OR WHO WILL HAVE RETIRED BY THE TIME THE PROPOSED SYSTEM IS IMPLEMENTED. HONG KONG ALREADY HAS A SOCIAL SECURITY SYSTEM WHICH PROVIDES A SAFETY NET FOR THE ELDERLY, THE NEEDY, THE DISABLED AND THE DISADVANTAGED. THE GOVERNOR HAS ANNOUNCED SUBSTANTIAL IMPROVEMENTS TO THE VARIOUS BENEFITS AND SERVICES PROVIDED UNDER THAT SYSTEM. THESE ARE ADDITIONAL то WHAT WE HAVE DONE AND ARE DOING IN PROVIDING INCREASINGLY BETTER HOUSING AND MEDICAL AND HEALTH CARE FOR THE COMMUNITY. THESE BENEFITS AND SERVICES WILL REMAIN IN PLACE AFTER THE RETIREMENT PROTECTION SYSTEM HAS BEEN INTRODUCED. THIS WILL MEAN THAT HONG KONG WILL HAVE TWO SYSTEMS RUNNING IN PARALLEL: ONE OF THE NATURE OF
NON-CONTRIBUTORY SOCIAL SECURITY, THE OTHER EMPLOYMENT RELATED. THIS IS NOT UNUSUAL. A NUMBER OF COUNTRIES IN DIFFERENT PARTS OF THE WORLD HAVE SUCH AN ARRANGEMENT. IN THIS WAY, I BELIEVE WE WILL BE ABLE TO TAKE CARE OF THE NEEDS OF OUR ELDERLY REGARDLESS OF WHETHER THEY HAVE BEEN IN EMPLOYMENT OR NOT.
PEOPLE,
SEVERAL MEMBERS HAVE RAISED THE QUESTION OF THE PROPOSED AGE OF RETIREMENT. A RETIREMENT AGE OF 65 IS PROPOSED SO THAT UNDER NORMAL CIRCUMSTANCES THE DESIRED LEVEL OF BENEFITS WOULD BE ACHIEVED AT THE MINIMUM CONTRIBUTION RATE. AN EARLY RETIREMENT AGE WOULD NECESSITATE EITHER A LOWER RETIREMENT PROTECTION OR A HIGH RATE OF CONTRIBUTION. TURNING TO THE QUESTION OF WITHDRAWAL OF BENEFITS, THE WORKING GROUP ON RETIREMENT PROTECTION IS RECOMMENDING THAT BENEFITS ARISING FROM THE STATUTORY MINIMUM CONTRIBUTION SHOULD NORMALLY NOT BE PAID OUT BEFORE THE AGE OF 65. HOWEVER, AN EMPLOYEE WHO PARTICIPATES IN AN EXISTING OR FUTURE APPROVED SCHEME WHICH PROVIDES FOR RETIREMENT AT AN AGE LOWER THAN 65 WOULD BE PERMITTED TO WITHDRAW HIS ACCRUED BENEFITS AT THAT AGE, EXCEPT FOR THAT PORTION OF THE BENEFITS WHICH DERIVES FROM THE MANDATORY MINIMUM CONTRIBUTION IN RESPECT OF SERVICE AFTER THE SYSTEM IS IMPLEMENTED. THIS PORTION OF THE BENEFITS WOULD REMAIN LOCKED IN UNTIL THE EMPLOYEE REACHES THE AGE OF 65. HOWEVER, ANY BENEFITS DERIVING FROM CONTRIBUTIONS MADE BEFORE THE COMMENCEMENT DATE THE NEW SYSTEM, OR FROM POST-COMMENCEMENT CONTRIBUTIONS IN EXCESS THE MANDATORY MINIMUM, WILL NOT NEED TO BE LOCKED IN AND MAY BE WITHDRAWN IN ACCORDANCE WITH THE PROVISIONS OF THE EXISTING SCHEME.
OF OF
MR
DEPUTY PRESIDENT, EVEN THOUGH OBVIOUSLY WE COULD NOT HAVE INVOLVED EVERYONE IN THE PREPARATION OF THE CONSULTATION PAPER. SOMEBODY HAS TO DRAW UP PROPOSALS TO START WITH. THE WORKING GROUP HAS DONE THAT AND WE ARE NOW CONSULTING EVERYONE IN THE COMMUNITY, THE WORKING GROUP LOOKS FORWARD TO RECEIVING PUBLIC VIEWS AND COMMENTS ON THIS MOST IMPORTANT SUBJECT. THEY WILL BE MOST CAREFULLY CONSIDERED. THANK YOU MR DEPUTY PRESIDENT.
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