XN000022-1994-10-26 — Page 41

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WEDNESDAY, OCTOBER 26, 1994

COMPULSORY PROVIDENT FUNDS WILL NOT BE CONSIDERED: SEM

* *

THE SECRETARY FOR EDUCATION AND MANPOWER, MR MICHAEL LEUNG, NOT LOOK TODAY (WEDNESDAY) REITERATED THAT THE ADMINISTRATION WOULD BACK ON THE CASE FOR COMPULSORY PROVIDENT FUNDS, BE THEY PRIVATELY-RUN OR CENTRAL.

"BECAUSE PROVIDENT FUNDS PROVIDE NO RELIEF TO THOSE OUTSIDE THE WORKFORCE.

THE BECAUSE PROVIDENT FUNDS CANNOT MEET THE NEEDS OF AGEING POPULATION SOON ENOUGH.

"AND BECAUSE PROVIDENT FUNDS, EVEN AFTER DECADES, ONLY MEAGRE PROTECTION TO THOSE WITH LOW INCOME, HE SAID.

PROVIDE

MR LEUNG WAS RESPONDING TO VIEWS OF THE LEGISLATIVE COUNCILLORS ON THE POLICY THE OLD AGE PENSION SCHEME AT THE RESUMED DEBATE ADDRESS.

ON

THE

HE STRESSED THAT THE OLD AGE PENSION SCHEME WAS FOUNDED ON

NO RATIONALE THAT, AS A CARING AND AFFLUENT SOCIETY, HONG KONG SHOULD

ELDERLY SLIPPING INTO LONGER RISK AN INCREASING PROPORTION OF ITS POVERTY.

"THE

INCOME

AIM IS TO ENHANCE THE QUALITY OF LIFE, THROUGH PROTECTION, FOR THAT LARGE GROUP OF ELDERLY PEOPLE WHO HAVE LOST THEIR EARNING CAPACITY," HE SAID.

MR

MIGHT NOTED THAT WHILE THE ELDERLY PEOPLE LEUNG ENTIRELY WITHOUT MEANS, MANY WERE LIVING AT THE MARGINS OF LOW AND CONSTANTLY FACED THE PRESSURE OF FINANCIAL HARDSHIP.

NOT

BE INCOME

"WE

ACCEPT THAT THE MODEST LEVEL OF PROVISION PROPOSED IN

ΤΟ HELP SCHEME WILL NOT PROVIDE RELIEF FOR ALL, BUT IT WILL ECONOMIC HARDSHIP FOR MANY, HE SAID.

THE

EASE

"THE

SCHEME WILL

BECAUSE

TOTAL

NOT BANKRUPT OUR ECONOMY. PROVISION PENSION PAYMENT AMOUNTS TO LESS THAN 1.5 PER CENT OF GDP.

FI

AND IT IS MR LRUNG

"BECAUSE PENSION PAYMENT WILL BE IRON-LINKED TO CONTRIBUTION

INCREASES

BENEFIT'S IN THUS INCOME

PREVENTING INDISCRIMINATE BECAUSE AT AN ESTIMATED AVERAGE CONTRIBUTION OF $180 PER MONTH, AN EXTREMELY MODEST PRICE FOR THE WORKING COMMUNITY TO PAY, SAID.

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