XN000022-1990-03-21 — Page 24

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WEDNESDAY, MARCH 21, 1990

MR YEUNG SAID HE COULD NOT AGREE THERE HAD BEEN A HIGH WASTAGE OF TEACHERS RECENTLY.

AS A

PERCENTAGE

"THE FIGURES DO NOT SUPPORT THIS CONTENTION. OF THE TOTAL NUMBER OF CONTRIBUTORS, THE FIGURES FOR WITHDRAWALS THE FUNDS HAVE AVERAGED 6 PER CENT ANNUALLY. SIX YEARS AGO THE WAS 6.16 PER CENT, THE PRESENT IS 6.92 PER CENT.

▬▬

FROM FIGURE

CENT

"AS A PERCENTAGE OF CONTRIBUTORS' BENEFITS, THE AMOUNTS

CONSTANT

PER 5.4 WITHDRAWN HAVE ALSO REMAINED FAIRLY

SIX ALARM, YEARS AGO AND 5.7 PER CENT NOW. CLEARLY THERE IS NO CAUSE FOR HE SAID.

+1

VESTED IN LARGELY

WERE MR YEUNG SAID FUND ADMINISTRATION AND CONTROL THE RESPECTIVE STATUTORY BOARDS OF CONTROL WHICH WERE MADE UP OF TEACHERS WHO WERE THEMSELVES CONTRIBUTORS.

AND OFFICIAL REPRESENTATION CONSISTED OF TWO MEMBERS OUT OF 11

CONTROLLED LARGELY 13 RESPECTIVELY. THUS MANAGEMENT OF THE FUNDS WAS BY TEACHERS THEMSELVES.

MR YEUNG SAID AS REGARDS FUNDING, TO MATCH TEACHERS' MONTHLY

DONATED CONTRIBUTIONS OF 5 PER CENT OF SALARY, THE GOVERNMENT

OF CENT, 10 PER CENT OR 15 PER CENT, ACCORDING TO THE LENGTH OF THE TEACHER.

5 PER SERVICE

FOR

1989, AND ANY PURPOSE OTHER

THE FUNDS STOOD AT OVER $7 BILLION AS AT AUGUST 31,

DEPLOYED THE UNDERLYING ASSETS HAD NOT BEEN THAN THOSE PRESCRIBED FOR THE FUNDS BY LAW.

THE

IS MANAGED BY "AS REGARDS INVESTMENT, THIS I UNDERSTAND TREASURER, WHO IS APPOINTED BY THE DIRECTOR OF ACCOUNTING SERVICES. THE MONEY IS INVESTED IN CERTIFICATES OF DEPOSIT, FIXED DEPOSITS, TRIPLE A RATED BONDS AND EQUITIES IN COMPANIES WITH TRUSTEE STATUS.

CLEARLY

"THE RETURN OVER THE LAST 10 YEARS HAS PRODUCED HEALTHY

14 PER CENT AVERAGE ANNUAL DIVIDENDS OF ABOUT

A VERY IMPRESSIVE TRACK RECORD," HE SAID.

TWO

ΤΟ YEARS

— T

CONTROL RESERVE

ΤΟ

"AS REGARDS LIQUIDITY, I UNDERSTAND THAT THE BOARDS OF HAVE TAKEN STEPS OVER THE PAST

INCREASE THE ACCOUNT OF EACH FUND FROM 5 PER CENT TO 7 PER CENT OF THE SUMS DUE CONTRIBUTORS.

THE "THIS HAS HELPED TO STRENGTHEN THE LIQUIDITY OF THE FUNDS.

HAVE ALSO TAKEN BOARDS OF CONTROL

THE STEPS TO RAISE

LEVEL OF A POSSIBLE INCREASE LIQUIDITY SO AS TO ENABLE THE TWO FUNDS TO MEET IN WITHDRAWALS

RECOURSE TO THE 'FORCED' SALE OF

WITHOUT HAVING

INVESTMENTS.

1990, COMPARED WITH ESTIMATED WITHDRAWALS OF 1989-90.

"THIS SHOULD RESULT IN $1.4 BILLION BFING AVAILABLE FOR PAYMENT AT THE END OF THE CURRENT

YEAR, I.E. AUGUST ABOUT $400

FINANCIAL

31,

MILLION

IN

/"THUS THE