Govt to set up $7 billion Civil Service Pension Reserve Fund
Following further discussions today (Monday) with the staff side, the Government intends to go ahead and establish a $7 billion Civil Service Pension Reserve Fund as soon as possible, subject to a resolution of the Legislative Council and the voting of funds by the Finance Committee.
A Civil Service Branch spokesman pointed out that the Fund would be used exclusively to pay pensions in the extremely unlikely event that they could not be covered by the General Revenue.
The future balance of the Fund would be maintained at a minimum of one year's estimated pension expenditure.
"The Joint Declaration and the Basic Law specifically guarantee the continued payment of pensions on terms no less favourable than before and irrespective of nationality or place of residence. The establishment of the Fund will reinforce these guarantees.
"The Administration has had to consider what the public would accept. This is particularly so given that it is extremely unlikely that the Fund would ever be used as there are already statutory pensions safeguards under the JD and BL," the spokesman explained.
The Fund will be established by a resolution of the Legislative Council under Section 29 of the Public Finance Ordinance.
End/Monday, December 19, 1994
Maximising capacity of airport
To overcome the shortage of capacity problem at the Hong Kong International Airport, the Government has proposed to utilise the programmable slots still available but unused during the early morning and late evening periods to accommodate more flights so that the economic benefits of the airport could be maintained.
Despite the efforts made by the Civil Aviation Department in the last few years to enhance the handling capability of the airport, there is little more the department can do within existing operating arrangements and a consultation on the proposals to maximise the airport's capacity is underway.