WEDNESDAY, AUGUST 2, 1978
INTEREST OF WORKERS PREVENTS
APPROVAL FOR SELF-ADMINISTERED RETIREMENT SCHEMES
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THE FINANCIAL SECRETARY, THE HON. PHILIP HADDON-CAVE, SAID TODAY THAT IT WAS GOVERNMENT'S STAND NOT TO GRANT APPROVAL TO SELF-ADMINISTERED RETIREMENT SCHEMES IN ORDER TO SAFEGUARD THE INTERESTS OF WORKERS.
REPLYING TO POINTS RAISED BY SOME UNOFFICIAL MEMBERS OF THE LEGISLATIVE COUNCIL ON +TAXATION OF RETIREMENT BENEFITS+ DURING THE COUNCIL'S ADJOURNMENT DEBATE, MR. HADDON-CAVE SAID HE WAS SURPRISED THAT. THIS STAND IS OBJECTED TO BY THEM.
MR. HADDON-CAVE SAID THAT THE INLAND REVENUE (RETIREMENT SCHEME) RULES PROVIDED THAT THE RETIREMENT SCHEME SHALL BE EXCLUSIVELY FOR THE BENEFIT OF THE EMPLOYEE AND OF THE WIDOW, CHILDREN, SURVIVING DEPENDENTS, OR LEGAL PERSONAL REPRESENTATIVES OF AN EMPLOYEE+ AND THAT +EACH EMPLOYEE CONCERNED SHALL BE ENTITLED TO DEFINED BENEFITS+,
+SEPARATELY FUNDED RETIREMENT SCHEMES GIVE WORKERS SOME ASSURANCE THAT WHEN THE DATE OF RETIREMENT FINALLY ARRIVES, THE FINANCIAL BENEFITS DUE TO THEM ARE ACTUALLY AVAILABLE TO THEM,+ MR. HADDON-CAVE EMPHASISED.
+FURTHERMORE, AS THE SCHEMES MUST ALSO BE PROPERLY FUNDED THE FUNDS CONCERNED ARE USUALLY INVESTED IN A MIXTURE OF LOCAL AND OVERSEAS STOCKS, BANK DEPOSITS AND BONDS, RISKS ARE SPREAD AND A STEADY RETURN ACHIEVED, HE ADDED.
ON THE OTHER HAND, MR. HADDON-CAVE NOTED THAT IN THE CASE OF SELF-ADMINISTERED RETIREMENT SCHEMES, FUNDS ARE INVESTED BY EMPLOYERS IN THEIR OWN BUSINESSES.
+SUCH SCHEMES GIVE A LESSER DEGREE OF PROTECTION TO WORKERS IN THAT PAYMENTS ARE LESS ASSURED IF THE EMPLOYER'S BUSINESS RUNS INTO DIFFICULTY OR IF IT IS LIQUIDATED AND, EVEN WHEN THIS IS NOT THE CASE, THE RETURN ACHIEVED IS MUCH LESS CERTAIN,+ MR. HADDON-CAVE EXPLAINED.
HE ALSO SAID THAT THE INLAND REVENUE (RETIREMENT SCHEME) RULES IMPLIED THAT A SCHEME IS NOT TO BE USED AS AN INSTRUMENT OF DISCIPLINE BY THE EMPLOYER:
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+SELF-ADMINISTERED SCHEMES, WHEREBY FUNDS ARE INVESTED IN THE EMPLOYER'S OWN BUSINESS, COULD BE USED BY THE EMPLOYER TO ENFORCE DISCIPLINE AND LOW WAGES,+ HE SAID,
MR. HADDON-CAVE
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