XN000022-1977-10-05 — Page 12

WEDNESDAY, OCTOBER 5, 1977

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INSURANCE COVER FOR WORKERS PROPOSED

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A SEMI-VOLUNTARY CONTRIBUTION SCHEME PROVIDING INSURANCE COVER AGAINST SICKNESS, INJURY AND DEATH, AND ALSO A SMALL RETIREMENT BENEFIT HAS BEEN PROPOSED IN A GREEN PAPER ON SOCIAL SECURITY, THE GOVERNOR, SIR MURRAY MACLEHOSE, TOLD THE LEGISLATIVE COUNCIL THIS AFTERNOON.

DESCRIBING THE ADDITIONAL PROPOSAL AS OF +CONS IDERABLE INTEREST+, SIR MURRAY SAID THE MAIN AIMS OF THE SCHEME WOULD BE TO PROVIDE A MONTHLY BENEFIT FOR THOSE OFF WORK LONGER THAN THE PERIOD OF 36 PAID SICKNESS DAYS PROVIDED UNDER THE EMPLOYMENT ORDINANCE- AND A LUMP SUM FOR THE HEIRS OF THOSE DYING BEFORE THE AGE OF 60.

IN EACH CASE THE BENEFIT WOULD BE BASED ON THE CONTRIBUTOR'S PREVIOUS EARNINGS, SUBJECT TO ACTUARIAL ADVICE, THERE MIGHT ALSO BE ROOM WITHIN THE SCHEME FOR A HOUSING LOAN FACILITY, SIR MURRAY POINTED OUT.

+THE CONTRIBUTION RATE WOULD BE KEPT LOW PERHAPS AT THE RATE OF 2 PER CENT OF EARNINGS FROM EMPLOYER AND EMPLOYEE ALIKE. THE GOVERNMENT WOULD PAY FOR THE ADMINISTRATIVE COSTS AND PERHAPS PROVIDE INITIAL PRIMING FOR THE SCHEME'S FUNDS. BUT IN GENERAL THE SCHEME WOULD BE SELF-FINANCING, HE SAID.

+SO FAR OUR SOCIAL SECURITY SCHEMES HAVE BEEN OPERATED OUT OF REVENUE, WITH THE ADDITION OF BENEFITS PROVIDED BY EMPLOYERS EITHER STATUTOR ILY OR VOLUNTARILY. BUT IT IS POSSIBLE THAT THIS IS AN AREA WHERE EMPLOYEES WOULD WELCOME THE OPPORTUNITY TO PLAY A MORE POSITIVE ROLE IF ENCOURAGED TO DO SO, HE SAID.

THE SIGNIFICANT FEATURE OF THE PROPOSAL, SIR MURRAY NOTED, IS THAT IT WOULD BE UP TO EACH EMPLOYEE WHETHER HE WISHED TO JOIN, BUT IF HE DID SO HIS EMPLOYER WOULD HAVE TO PAY CONTRIBUTIONS TOO ÚNLESS HE WERE CONTRACTED OUT OF THE SCHEME. THE EMPLOYER COULD CONTRACT OUT IF HE ALREADY PROVIDED BENEFITS SUCH AS WOULD BE CONFERRED UNDER THE SCHEME.

+THIS SCHEME WOULD CATER FOR AN AREA OF NEED, WHICH CANNOT BE MET SATISFACTORILY THROUGH THE PUBLIC ASSISTANCE SCHEME BECAUSE THE PERSONS CONCERNED OR THEIR FAMILIES HAVE MEANS ABOVE THE LEVEL OF ELIGIBILITY FOR PUBLIC ASSISTANCE, BUT ARE NOT SO FAR ABOVE IT AS TO BE INSULATED AGAINST THE FINANCIAL EFFECTS ON THE FAMILY OF THE PROLONGED SICKNESS OR DEATH OF A BREAD-WINNER.

+MOREOVER, THERE MAY BE SOME WHO THOUGH WITHIN THE INCOME LEVEL ELIGIBLE FOR PUBLIC ASSISTANCE WOULD PREFER TO INSURE THEMSELVES IN THIS ALTERNATIVE WAY, HE SAID.

/SIR MURRAY