XN000022-1981-12-23 — Page 9

WEDNESDAY, DECEMBER 23, 1981

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BEEFIT SCHEME IDEA LACKS WORKERS' SUPPORT

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A PROPOSED SEMI-VOLUNTARY CONTRIBUTORY SICKNESS, INJURY AND DEATH BENEF IT SCHEME ESSENTIALLY DESIGNED FOR YOUNG EMPLOYEES WOULD NOT BE SUCCESSFUL AS IT WOULD TEND TO ATTRACT THE OLDER AND LESS HEALTHY MEMBERS OF THE WORKFORCE, THE SECRETARY FOR SOCIAL SERVICES, THE HON E.P.HO. SAID IN THE LEGISLATIVE COUNCIL MEETING TODAY (WEDNESDAY).

IN REPLY TO A QUESTION FROM THE HON ANDREW SO, MR HO SAID THE. AN OPINION SURVEY OF EMPLOYEES ALSO INDICATED THAT ONLY FEW PEOPLE HAD BOUGHT LIFE INSURANCE, MEDICAL INSURANCE AND SICKNESS INSURANCE, CASTING CONSIDERABLE DOUBT ON THE ACTUAL SUPPORT ANY VOLUNTARY CONTRIBUTORY SCHEME WOULD RECEIVE.

THE SURVEY SHOWED THAT ABOUT HALF OF THE EMPLOYEES INTERVIEWED WERE NOT PREPARED TO PAY MORE THAN TWO PER CENT OF THEIR SALARY TO A CONTRIBUTORY SCHEME.

+IN THE LABOUR ADVISORY BOARD DISCUSSION OF THE PROPOSAL, + MR HO SAID, THE EMPLOYEES REPRESENTATIVES FELT THAT THE SCHEME WAS UNATTRACTIVE BECAUSE THE AMOUNT OF BENEFIT WAS SMALL.+

IN ADDITION, ACTUARIAL ADVICE ALSO INDICATED THAT A VOLUNTARY SCHEME WOULD ADD CONSIDERABLY TO THE ADMINISTRATIVE COMPLEXITIES OF ANY CONTRIBUTORY SOCIAL INSURANCE PLAN.

HE SAID, THE VOLUNTARY ELEMENT WOULD ALSO MAKE IT DIFFICULT TO ESTIMATE WITH ANY ACCURACY INCOME FROM CONTRIBUTIONS AND HENCE TO SET BENEFITS AT THE RIGHT LEVEL FROM THE OUTSET.+

HE SAID THE GOVERNMENT THEREFORE DECIDED TO DEVELOP ALTERNATIVE PROPOSALS TO COVER THOSE RISKS THROUGH AN AMENDMENT OF THE EMPLOYMENT ORDINANCE WITHOUT INVOLVING ANY CONTRIBUTION FROM THE EMPLOYEE.

+WHERE THE DEATH GRANT TO BE INCORPORATED IN THESE PROPOSALS IS NOT PAYABLE BY THE EMPLOYER AND EQUIVALENT GRANT WOULD BE PAYABLE UNDER AN AUGMENTED SPECIAL NEEDS ALLOWANCE SCHEME ADMINISTERED BY THE SOCIAL WELFARE DEPARTMENT, HE SAID.

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