11-
He also called on community support to develop a system that would enable everyone to retire in dignity and in a manner consistent with the independent self- reliant traditions which had served Hong Kong so well.
Mr Cartland revealed that a consultant had just been appointed to help elaborate the details of the scheme.
"The Government aims to have the necessary legislation in place as quickly as possible within the current legislative session," he said.
He said the Government's preliminary thinking was that the compulsory system should contain the following key features:-
E
a minimum obligatory combined contribution rate from every employer and employee of ten percent, of which five per cent should come from the employer;
a benefits-qualifying age of 65;
preservation (i.e. non-withdrawal) of benefits until the qualifying age;
portability of benefits from one employer to another;
establishment of a mechanism to ensure preservation;
establishment of residual pooling arrangements for employees who are unable to join any other scheme in the market;
a private sector guarantee against fraud or other unlawful activity, perhaps financed through insurance or by a retrospective levy on the providers (insurers, trustees, banks and fund managers);
tighter regulation of providers, in particular trustees, and of investment vehicles; and
an authority to ensure comprehensive and prompt contributions and compliance with regulations.
"The Government considers that, if the community wishes a compulsory system to be introduced, all these features would be essential and in the best interests of the retiring work-force," said Mr Cartland.
End/Tuesday, March 28, 1995