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The spokesman pointed out that the investments of the two Funds were currently carried at historical cost in the books of accounts which had no relevance to the financial position of the Funds.
"The Rules are amended to enable the investments of the Funds to be carried at market values. The amendment conforms to the international accounting standards and brings the Funds into line with arrangements for private sector schemes and in particular the Occupational Retirement Schemes Ordinance which requires disclosure of the market value of investments in the accounts," he said.
"Amendments are also made to allow the Funds to incur and pay for their administrative expenditure from its income by removing the requirement to charge administration costs of the Funds to the General Revenue in the first instance. This will add flexibility in the administration of the Funds.
"The wordings of Rule 10 of the Rules are also amended to clarify the types of the investment that may be made by the Funds."
The spokesman explained that certain transitional arrangements which were required when amendment was made in 1982 to change the qualifying period for benefits from 10 to five years with retrospective effect from 1980 were no longer needed. "The time element embraced by the Rules is no longer applicable for current teachers. All teachers who were first appointed to grant or subsidised schools during the period and were of the age 50 to 55 are no longer in service.
"These transitional provisions are therefore removed," the spokesman said.
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EIA study for SSDS commissioned
The Environmental Protection Department (EPD) has commissioned, on behalf of the Drainage Services Department, a consultancy study to carry out an environmental impact assessment for the Strategic Sewage Disposal Scheme (SSDS).
The contract for the $36 million study was awarded to the joint venture of Montgomery Watson Hong Kong Limited and Binhai Wastewater Treatment and Disposal (Hong Kong) Consultants Limited.