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(a) of the current position regarding guaranteeing all pension payments before
and after 1997; and
(b) whether it intends to provide such a guarantee by requesting the British and Chinese governments to sign an international agreement to be-lodged with the United Nations; if not, why not? Reply:
Mr President,
Guarantees in respect of pensions have been made by Hong Kong's present and future sovereign powers. Specifically:
(a) The Sino-British Joint Declaration, is an agreement between the Governments of the United Kingdom and the People's Republic of China, binding in international law and formally lodged with the United Nations. Section IV of Annex I to the Joint Declaration specifically provides that the Hong Kong Special Administrative Region Government (HKSARG) shall pay all pensions and benefits due to pensioners on terms no less favourable than before, irrespective of their nationality or place of residence; and
(b) The Basic Law of the HKSAR was adopted by the National People's Congress of the People's Republic of China in April 1990. Article 102 of which requires the HKSARG to pay all pensions, gratuities, allowances and benefits due to pensioners on terms no less favourable than before, irrespective of their nationality or place of residence.
To address staff concerns about the security of their pensions, the Hong Kong Government also established in March 1995 a Civil Service Pension Reserve Fund which is set aside to be used exclusively for pension payments to former civil servants in the unlikely event that the payment of their pensions could not be met from general revenue. The Government is committed to ensuring that the Fund is maintained at a level at least equivalent to a full year's pension payment. The Fund was established with a sum of $7 billion in the first instance.
Furthermore, the legislation granting pension benefits in respect of the public service provides for the payment of pension benefits to pensioners as of right. Pensions are a statutory charge, which takes precedence over non-statutory charges, on the general revenue.