XN000022-1987-06-03 — Page 7

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NEW PENSION SCHEME PROPOSED

WEDNESDAY, JUNE 3, 1987

A BILL SEEKING TO GRANT NEW PENSION BENEFITS FOR THE CIVIL SERVICE AND TO AMEND, LARGELA CONSEQUENTIAL, EXISTING ORDINANCES CONTAINING REFERENCES TO PENSJON MATTERS, KAY INTRODUCED INTO THE LEGISLATIVE COUNCEL TODAY (WEDNESDAYE.

MOVING THE SECOND READING OF THE PENSION BENEFITS BIT.L 1987. THE HILF SECRETARY, THE HON DAVID FORD, SAID THE EXISTING SERVICE PENSION SCHEME HAD BEEN IN OPERATION SINCE 1919 AND BEGUN TO SHOW ITS AGE IN RECENT YEARS.

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HE SAID THAT V REVIEW WAS UNDERTAKEN FOLLOWING REQUESTS FROM STAFF WHICH CONFIRMED THAT THE PRESENT PENSION ARRANGEMENTS WERF IN NEED OF MODERNISATION.

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IN THE LIGHT OF THIS REVIEW A NEW SCHEME WAS DEVISED WHICH IT WAS FELT WAS MORE IN KEEPING WITH THE REQUIREMENTS OF THE HONG KONG CIATE SERVICE OF TODAY, NR FORD CONTINUED.

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THE MAIN ELEMENTS OF THE SCHEME ARE AS FOLLOWS:

THE NORMAL AGE OF RETIREMENT IS RAISED FROM 55 TO 60;

THE PENSION EARNING PALTOR FOR PENSIONABLE STAFF WILL. BE ADJUSTED FROM 1/600TH TO 1/675TH AS A CONSEQUENCE TO RAISING THE RETIREMENT AGE. IN ADDITION, THE LOWER PENSION FACTOR FOR STAFF OTHER THAN PENSIONABLE STAFF WILL BE BROUGHT INTO I INT WITH THAT FOR PENSIONABLE STAFF FROM A CURRENT DATE. THE MAXIMUM PENSION KILICEL CAN BE EARNED WILL REMAIN AT TWO/THIRDS OF FINAL SALARY;

CIVIL SERA ANTS WILL BE ALLOWED TO COMMUTI UF TO 50 PER CENT OF THEIR PENSION FOR A LUMP SUM INSTEAD OF 25 PER (FNT:

CIVIL SERVANTS WHO COMPLETE NOT LESS THAN TEN YEARS SERVICE WILL BE ELIGIBLE TO RECEIVE THEIR EARNED PENSION BENEFITS ON REACHING NORMAL RETIREMENT AGE;

SPECIAL ARRANGEMENTS WILL BE INTRODUCED FOR THE DISCIPLINED SERVICES. UNDER THESE ARRANGEMENTS HEAD OF THE DISCIPLINED SERVICES OR THE GOVERNOR IN THE CASE OF DIRECTORATE STAFF WILL BE EMPOWERED TO PRESCRIBE WITH ANY GRADE BANK OR CATEGORY OF OFFICER SHOULD RETIRE ON OPFRATIONAL GROUNDS AT A SPECIFIED AGE BETWEEN 55 AND 60. WHERE THE RETIREMENT AGE IS SET VT BELOW 60 OFFICERS RETIRED UNDER THESE ARRANGEMENTS KILL RECRIVE AN ENHANCED PENSION;

SERVING OFFICERS