XN000022-1995-08-01 — Page 10

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Registrar of Occupational Retirement Schemes, Mrs Pamela Tan, said: "Although the Mandatory Provident Fund Schemes Ordinance was passed by the Legislative Council, the commencement date of the new ordinance has not been fixed, and further requirements under the rules and regulations have not been finalised yet.

"The Government is now proceeding to establish the rules and regulations for implementation under the new Ordinance. Additionally, rules and regulations will be introduced to facilitate the interface between the new ordinance on the existing retirement schemes while keeping the impact on the latter to the minimum."

She advised employers operating occupational retirement schemes not to delay their registration.

"It is of immediate concern for employers to strictly observe the Occupational Retirement Schemes Ordinance and submit their applications for scheme registration before the deadline on October 15, 1995.

"Employers who fail to register before the deadline and continue to operate unregistered retirement schemes may be prosecuted and face penalty of up to $500,000 fine and additional daily fine of up to $10,000 and two years imprisonment,' said Mrs Tan.

The application procedure was not complicated, the Registrar stress, urging those employers who have not yet submitted their registration applications to act now, and to co-ordinate with their scheme administrators in the preparation of the required application documents. The Office will not be extending the deadline.

ORSO has come into operation since October 15, 1993. The purpose of the ordinance is to set up a registration system to ensure that all private occupational retirement schemes are properly regulated and that retirement benefits will be paid to scheme members when they fall due.

It stipulates major safeguards to enhance the protection of schemes members' interest, including the separation of scheme assets from employer's assets, adequate funding of the schemes by employers, regular independent audits and actuarial reviews, disclosure of information to scheme members, independent trusteeship and restrictions on certain investments of scheme assets.

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