XN000022-1987-05-13 — Page 22

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WEDNESDAY, MAY 13, 1987

HE SAID THAT PERHAPS WORKERS WITH VERY LOW EARNINGS MIGHT

THE LEVEL OF THEIR BE EXCLUDED FROM THE SCHEME FOR TWO REASONS. WAGES WAS BARELY ADEQUATE FOR THEIR SUBSISTENCE. THE CONTRIBUTIONS, IF MADE, WERE SO LOW THAT THE BENEFITS PAYABLE ON RETIREMENT WERE INSIGNIFICANT FOR SOCIAL SECURITY PURPOSES.

SECONDLY, HE SAID, THE TYPES OF CONTINGENCY NEEDS, IN RESPECT OF WHICH BENEFIT PAYMENTS WERE MADE, MUST BE UNEQUIVOCALLY DEFINED AT THE OUTSET.

+ IF THE PRIMARY OBJECTIVE OF THE PROVIDENT FUND SCHEME IS TO PROTECT AGAINST OLD AGE, BENEFITS SHOULD BE PAYABLE ONLY UPON RETIREMENT, INVALIDITY OR DEATH,+ HE SAID.

THIRDLY, HE NOTED THAT SOME FEARS HAD BEEN EXPRESSED THAT IF RETIREMENT BENEFITS WERE PAYABLE IN A LUMP SUM, THE RECIPIENTS MIGHT SQUANDER THE LIFE-LONG SAVINGS IN ECONOMICALLY UNSOUND PURSUITS.

CONSEQUENTLY, ALTERNATIVE FORMS OF PAYMENT WERE PROPOSED. THE BENEFICIARIES MIGHT BE PAID BY PERIODIC INSTALMENTS OR ADVISED TO PURCHASE ANNUITY SCHEMES.

FOURTHLY, DR HO SAID, SOME SORT OF LEGISLATION MUST BE ENACTED TO EMPOWER THE GOVERNMENT OR A STATUTORY BODY TO REGULATE AND SUPERVISE THE OPERATION OF THE PROVIDENT FUNDS ENTRUSTED IN THE VARIOUS INVESTMENT INSTITUTIONS.

LASTLY, TAX RELIEF MIGHT BE CONSIDERED FOR THE EMPLOYEE'S CONTRIBUTIONS TO THE PROVIDENT FUND TO ENCOURAGE WAGE-EARNERS TO PARTICIPATE IN THE SAVINGS SCHEME FOR OLD AGE.

REFERRING TO THE OTHER TWO PRONGS OF HIS SUGGESTION TO PROTECT SOCIAL SECURITY FOR OLD AGE. DR HO SAID THE COMMISSION HE PROPOSED SHOULD ALSO REVIEW THE PUBLIC ASSISTANCE AND THE OLD AGE ALLOWANCE SCHEMES, AS THESE WELFARE PROVISIONS FORMED THE MAJOR SOURCE OF INCOME FOR THE DESTITUTE ELDERLY.

+IN ADDITION, THE EXISTING LONG SERVICE AND SEVERANCE BENEFITS AND OTHER LABOUR LEGISLATION SHOULD ALSO BE REVIEWED AND EXTENDED, HE SAID.

HE SUGGESTED THAT SUCH CONDITIONS AS THE QUALIFYING AGE OF THE WORKER, THE MAXIMUM COMPENSATION, AND OTHER PAY ENTITLEMENTS SHOULD BE MODIFIED IN THE INTEREST OF WORKERS.

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