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WEDNESDAY, JANUARY 19, 1994
THESE INCLUDE WHETHER THE SCHEME SHOULD COVER IMPORTED WORKERS AND FOREIGN DOMESTIC HELPERS; WHETHER PENSION BENEFITS CAN BE PAID TO HONG KONG RESIDENTS WHO EMIGRATE; WHAT HAPPENS TO THE CONTRIBUTIONS OF THOSE PERSONS WHO DIE BEFORE RECEIVING THEIR PENSION; WHETHER THERE SHOULD BE AN INCOME DECLARATION OR A MEANS TEST FOR ELIGIBILITY ΤΟ BENEFITS UNDER THE SCHEME, PARTICULARLY IN THE CASE OF NON- CONTRIBUTORS; AND WHETHER THERE SHOULD BE A MINIMUM RESIDENCE PERIOD BEFORE AN ELDERLY PERSON BECOMES ELIGIBLE FOR BENEFITS UNDER THE OPS.
MR LAM ASSURED MEMBERS THAT ALL THESE ISSUES WOULD BE COVERED IN GOVERNMENT'S DELIBERATIONS.
"VIEWS EXPRESSED IN RESPECT OF FINANCIAL AND OPERATIONAL ASPECTS OF THE OPS WILL BE CONSIDERED VERY CAREFULLY AND THOSE THAT RECEIVE BROAD PUBLIC ENDORSEMENT WILL BE ADOPTED WHERE PRACTICABLE AND AFFORDABLE, HE STATED.
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ON THE TIME TABLE OF THE CONSULTANCY STUDY, MR LAM SAID THE GOVERNMENT PLANNED TO COMPLETE THE STUDY AS SOON AS PRACTICABLE.
"WE SHALL PUBLISH A CONSULTATION DOCUMENT ΤΟ SEEK FURTHER PUBLIC VIEWS, HOPEFULLY BY THE SUMMER.
"WE SHALL THEN TAKE INTO ACCOUNT PUBLIC VIEWS, INCLUDING THE OUTCOME OF OUR CONSULTATION WITH CHINA, AND MAKE THE DECISION ON WHETHER TO PROCEED WITH THE SCHEME BEFORE THE END OF THIS YEAR, HE SAID.
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TURNING TO CALLS FOR THE ESTABLISHMENT OF MANDATORY EMPLOYMENT- RELATED SAVING SCHEMES, MR LAM REITERATED THAT THEY WOULD NOT BE ABLE PROVIDE THE ELDERLY WITH ADEQUATE RETIREMENT PROTECTION NOW OR IN THE FUTURE; NOR WOULD THEY COVER OR PROVIDE MEANINGFUL BENEFITS TO THE BULK OF THE POPULATION.
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HE POINTED OUT THAT A PRIVATELY-RUN MANDATORY SAVING SCHEME WOULD BE VERY COMPLEX TO OPERATE AND IMPOSE A SUBSTANTIAL ADMINISTRATIVE BURDEN ON THE COMMUNITY WITHOUT THE GUARANTEE OF COMMENSURATE BENEFITS.
A CENTRALLY-RUN SAVING SCHEME, OR A CENTRAL PROVIDENT FUND, WOULD BE EVEN MORE INEFFECTIVE GIVEN THE FACT THAT THEY TYPICALLY YIELD LOWER-THAN-AVERAGE RETURNS.
"GIVEN THESE CONSIDERATIONS, IT IS CLEAR THAT NEITHER TWO MANDATORY SAVING SCHEMES WOULD BE AN EFFECTIVE SOLUTION PROBLEM OF FINANCIAL SECURITY FOR OLD AGE," MR LAM SAID.
OF THE TO THE
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