XN000022-1993-12-15 — Page 16

WEDNESDAY, DECEMBER 15, 1993

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GOVT OPTS FOR COMPULSORY OLD AGE PENSION SCHEME

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THE GOVERNMENT ANNOUNCED TODAY (WEDNESDAY) THAT HAVING ANALYSED THE FULL RANGE OF OPTIONS ON RETIREMENT PROTECTION, IT HAS COME TO THE CONCLUSION THAT THE PRESENT APPROACH OF ENCOURAGING VOLUNTARY SCHEMES SHOULD BE MAINTAINED.

AT THE SAME TIME, TO PROVIDE FOR THE FINANCIAL SECURITY OF TODAY'S AND TOMORROW'S ELDERLY, THE GOVERNMENT INTENDS TO PURSUE THE OPTION OF A COMPULSORY CONTRIBUTORY OLD AGE PENSION SCHEME (OPS).

IN A STATEMENT DELIVERED IN THE LEGISLATIVE COUNCIL TODAY, ACTING SECRETARY FOR EDUCATION AND MANPOWER, MR W K LAM, SAID GOVERNMENT'S CONCLUSION WAS BASED ON GOOD GROUNDS.

THE THE

"WE CONTINUE TO BELIEVE FIRMLY THAT NO ONE, CERTAINLY NOT THE GOVERNMENT, CAN BE A BETTER JUDGE THAN INDIVIDUALS ON THE MOST APPROPRIATE FORM OF SAVINGS COMPATIBLE WITH THEIR OWN CAREER PLANS AND RETIREMENT NEEDS, HE SAID.

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"ADVOCATES OF COMPULSORY SAVINGS OFTEN IGNORE ONE IMPORTANT FACT: IT IS NOT THE WAY OF HONG KONG PEOPLE TO BE DIRECTED ON

HOW, WHEN, WHERE OR HOW MUCH TO SAVE AND INVEST.

"THE FREEDOM TO MANAGE ONE'S OWN FINANCIAL AND ECONOMIC AFFAIRS 15 A FUNDAMENTAL PART OF HONG KONG'S WAY OF LIFE. WE MUST NOT VIOLATE THIS KEY PRINCIPLE, HE STATED.

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ON THE PROPOSED COMPULSORY CONTRIBUTORY OPS, MR LAM SAID IT WAS THE ONLY OPTION THAT COULD TACKLE THE PROBLEM OF FINANCIAL PROVISION POR OLD AGE WITHIN A REASONABLY SHORT TIME.

Th

"BUT WE HAVE TO GET IT RIGHT, HE SAID. "WE HAVE ΤΟ PROCEED WITH GREAT CARE AND SATISFY OURSELVES ON SEVERAL MAJOR ISSUES."

THESE INCLUDE:

FIRST, SUCH A SCHEME WOULD HAVE TO PROVIDE MEANINGFUL BENEFITS FINANCED FULLY BY THE CONTRIBUTIONS. то ANSWER THIS QUESTION, THE GOVERNMENT SHALL EMPLOY EXPERT CONSULTANTS TO ADVISE ON FINANCING AND ADMINISTRATION.

SECOND, THERE WOULD HAVE TO BE GENERAL PUBLIC ACCEPTANCE FOR A COMPULSORY OPS. THE GOVERNMENT SHALL RELY HEAVILY ON THE ADVICE OF MEMBERS OF THE LEGISLATIVE COUNCIL IN THIS REGARD, AS WELL AS THAT OF THE WIDER COMMUNITY.

* THIRD, AS THIS IS AN ISSUE WHICH GOES WELL BEYOND 1997, THE GOVERNMENT SHALL HAVE TO CONSULT THE CHINESE GOVERNMENT BEFORE REACHING A DECISION.

EXTENSIVE STUDY, THAT

"THE GOVERNMENT IS CONVINCED, AFTER CONTINUATION WITH OUR VOLUNTARY APPROACH TO RETIREMENT PROTECTION, TOGETHER WITH THE AFFIRMATION THAT WE INTEND TO PURSUE THE OPTION OF A CONTRIBUTORY OPS, SUBJECT TO THE ABOVE ISSUES BEING SATISFIED, IS THE RIGHT WAY FORWARD, SAID MR LAM.

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