XN000022-1992-04-10 — Page 12

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FRIDAY, APRIL 10, 1992

ARE

"AS IN THE 1991 BILL, THERE

PROVISIONS FOR THE ESTABLISHMENT OF CONSULTATIVE COMMITTEES FOR CONTRIBUTORY SCHEMES WITH MORE THAN 50 MEMBERS, WHERE A MAJORITY OF THE MEMBERS SO WISH.

"WE BELIEVE THAT CONSULTATIVE COMMITTEES WILL SERVE AS A USEFUL CHANNEL OF COMMUNICATION BETWEEN EMPLOYERS, SCHEME MANAGERS AND EMPLOYEES, ESPECIALLY FOR LARGE SCHEMES WHERE COMMUNICATION WITHIN THE BUSINESS ESTABLISHMENT IS LESS CLOSE.

"WHILE

THERE

IS NO REQUIREMENT FOR THE SETTING UP OF CONSULTATIVE COMMITTEES FOR SMALL OR NON-CONTRIBUTORY SCHEMES, EMPLOYERS ARE STATUTORILY OBLIGED TO PROVIDE INDIVIDUAL MEMBERS WITH IMPORTANT INFORMATION ABOUT THEIR SCHEME," THE SPOKESMAN ADDED.

THE BILL WILL BE INTRODUCED INTO THE LEGISLATIVE

APRIL 29.

COUNCIL ON

'IT IS INTENDED THAT ALL EXISTING SCHEMES WILL HAVE TO BE REGISTERED WITHIN TWO YEARS FROM THE COMMENCEMENT OF THE ORDINANCE. THEREAFTER, OPERATING AN UNREGISTERED SCHEME OR MAKING CONTRIBUTIONS TO SUCH A SCHEME WILL BE AN OFFENCE.

THE SPOKESMAN ALSO OUTLINED THE KEY POINTS OF THE REGISTRATION SYSTEM: IN APPLYING FOR REGISTRATION, A SCHEME WILL NEED TO SUBMIT STATEMENTS BY A SOLICITOR AND AN ACCOUNTANT STATING RESPECTIVELY WHETHER THE SCHEME IS SET UP AS A TRUST OR AN INSURANCE ARRANGEMENT, WHETHER IT IS GOVERNED BY THE LAWS OF HONG KONG, AND WHETHER PROPER ACCOUNTS AND RECORDS ARE BEING KEPT.

AN ACTUARIAL CERTIFICATE WILL BE REQUIRED IN THE CASE OF A DEFINED BENEFIT SCHEME. A DESIGNATED PERSON WILL NEED TO BE APPOINTED FOR EACH RETIREMENT SCHEME TO TAKE RESPONSIBILITY FOR RECEIVING SERVICE OF NOTICE, SUBMITTING ANNUAL RETURNS AND OTHER SPECIFIED INFORMATION TO THE REGISTRAR OF OCCUPATIONAL RETIREMENT SCHEMES.

ON FUNDING REQUIREMENTS, A REGISTERED SCHEME WILL NEED TO HAVE SUFFICIENT ASSETS TO MEET ITS AGGREGATE VESTED LIABILITIES (THAT IS, TO MAINTAIN SOLVENCY).

IN THE CASE OF DEFINED CONTRIBUTION SCHEMES, CONTRIBUTIONS MUST BE MADE IN ACCORDANCE WITH SCHEME RULES. FOR DEFINED BENEFIT SCHEMES, ACTUARIAL REVIEWS MUST BE CONDUCTED TRIENNIALLY.

ANY SHORTFALL IN VESTED BENEFITS IDENTIFIED IN THE REVIEW MUST BE TOPPED UP WITHIN THREE YEARS AND ANNUAL ACTUARIAL REVIEWS WILL BE TRIGGERED OFF TO PROVIDE CLOSER MONITORING UNTIL THE SCHEME ACHIEVES SOLVENCY.

AN

OFFICE OF THE REGISTRAR OF OCCUPATIONAL RETIREMENT SCHEMES WILL BE ESTABLISHED FOLLOWING THE ENACTMENT OF THE BILL, WITH A VIEW TO BRINGING THE LEGISLATION INTO FORCE AS SOON AS THE OFFICE IS ESTABLISHED.

FULLY

/THE REGISTRAR