XN000022-1992-11-16 — Page 4

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MONDAY, NOVEMBER 16, 1992

GOVT GUARANTEE ON RETIREMENT BENEFITS IMPRACTICABLE

* * * * *

THE SUGGESTIONS THAT THE GOVERNMENT SHOULD PROVIDE A FINANCIAL BENEFITS GUARANTEE TO GUARD AGAINST THE POSSIBLE LOSS OF RETIREMENT

FOR THROUGH FRAUD OR BAD MANAGEMENT IS NOT PRACTICABLE, THE SECRETARY EDUCATION AND MANPOWER, MR JOHN CHAN, SAID.

THIS IS BECAUSE SUCH A GUARANTEE WOULD PRODUCE AN IMMENSE CONTINGENT LIABILITY FOR THE GOVERNMENT. IT MIGHT ALSO ENCOURAGE AGGRESSIVE OR UNSCRUPULOUS FUND MANAGEMENT.

WITH

"WE BELIEVE THAT THE OCCUPATIONAL RETIREMENT SCHEMES BILL, CURRENTLY BEFORE THE LEGISLATIVE COUNCIL, WILL EFFECTIVELY DEAL

MAIN AREAS OF CONCERN REGARDING THE SAFETY OF RETIREMENT BENEFITS, HE ADDED.

THE

"

OF ST

AT THE 42ND ANNUAL GENERAL MEETING SPEAKING

JAMES' SETTLEMENT TODAY (MONDAY), MR CHAN ALSO DISMISSED THE SUGGESTIONS THAT THE BENEFITS THE GOVERNMENT SHOULD MAKE A FINANCIAL CONTRIBUTION TO PAYABLE UNDER THE PROPOSED RETIREMENT PROTECTION SYSTEM.

HE SAID THE GOVERNMENT ALREADY PROVIDED A PUBLIC ASSISTANCE SCHEME AND A SPECIAL NEEDS ALLOWANCE SCHEME.

IN

RESIDENTIAL SUBSIDISED MEDICAL

ADDITION, THERE ARE ALSO COMMUNITY SUPPORT AND SERVICES FOR ELDERLY PERSONS, AS WELL AS HEAVILY CARE AND PUBLIC HOUSING FOR THOSE WHO NEED THEM.

"WHILE THESE SERVICES MAY NOT SEEM

то DIRECTLY RELATED PROTECTION OR OLD AGE BENEFITS, IN SOME COUNTRIES THEY RETIREMENT WOULD BE INCLUDED IN THE VALUE OF THE RETIREMENT PROTECTION MR CHAN SAID.

PACKAGE,

AS

THE BE

THERE IS NO INTENTION OF REMOVING THESE BENEFITS ONCE RETIREMENT PROTECTION SYSTEM IS INTRODUCED, THEN THEIR VALUE MUST

REVENUE AT TAKEN INTO ACCOUNT, AS THEY ARE PROVIDED THROUGH GENERAL MINIMAL OR NO COST TO THE RECIPIENT,**

A

SYSTEM UNDER THE PROPOSED COMMUNITY-WIDE RETIREMENT PROTECTION

IN UNVEILED BY

EMPLOYEES THE GOVERNMENT LAST MONTH, ALL

FULL-TIME EMPLOYMENT UNDER THE AGE OF 65 SHOULD BE REQUIRED TO PARTICIPATE IN

SET RETIREMENT PROTECTION SCHEME WHICH MEETS THE MINIMUM REQUIREMENTS OUT IN THE CONSULTATION PAPER, UNLESS THEY ARE SPECIFICALLY EXEMPTED.

THERE ARE ARGUMENTS THAT PERSONS EARNING A VERY LOW WAGE SHOULD NOT HAVE TO CONTRIBUTE TO THEIR RETIREMENT SCHEMES.

IN RESPONSE, MR CHAN SAID IT WOULD NOT BE POSSIBLE TO SELECT AN

FIGURE AS

THE

OF THE CUT-OFF WAGE FOR

PURPOSE

MAKING

ACCEPTABLE CONTRIBUTIONS.

FURTHERMORE,

EXEMPTED

HOW

FROM THEIR

IF

LOW-PAID EMPLOYEES WERE TO BE CONTRIBUTING, THEN THE QUESTION WOULD STILL REMAIN AS TO SHARE OF THE CONTRIBUTION SHOULD BE FUNDED.

/HE ALSO