TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 12

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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by public assistance standards. From the social security point of view, eligibility for compassionate rehousing would be a much better solution. Having to deal with high rent cases on an individual basis is a time-consuming and unsatisfactory business: it is not possible to devise a formula to deal with all such cases in a fair and simple way. There would inevitably be "hard" borderline cases with the likelihood of public criticism whichever way they were settled.

Welfare allowance scheme

Chronic sickness allowance

6.

The basis of eligibility will in practice depend on capacity to work. This being so, it will be more satisfactory to set age limits for the allowance. In effect, an upper age limit of 70 has been set by providing that a person eligible for an old age allowance should not also be eligible for a chronic sickness allowance. But there is no equivalent effective lower age limit except to the extent that a person will have to have been incapable of work for 18 months (and so beyond minimum school leaving age) and still be incapable of work. where the line should be drawn can best be decided when the response to

Exactly the Green Paper is assessed: but it will presumably be around the minimum school leaving age plus 18 months mark.

Sickness, injury and death benefit scheme

7。

The main elements in the scheme largely stem from one fundamental feature of the scheme its voluntary nature and the consequent need to construct it on a basis that is attractive to employees and (so far as practicable) acceptable to employers. In particular this has determined the benefit and contribution structure of the scheme. When the details are looked at again in the light of the response to the Green Faper it will be very desirable to keep this in mind. It is also important to bear in mind that this is a social insurance scheme, not a savings scheme which provides for a pooling of social risks. This is one of the factors which makes it appropriate for the Government to run it; and to pay for the administrative costs.

a) Attracting employees into scheme

8.

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Experience in other countries which have started off contributory schemes has underlined the fact that a scheme based solely on retirement benefits is unlikely to be attractive, since such benefits take a long time to build up. Moreover, protection is needed against immediate contingencies just as much as eventual contingencies. So the scheme emphasizes protection against loss of income through sickness or death; and suggests the possibility of further voluntary contributions. But to provide an attraction to those who do not expect to lose income for these reasons, the scheme envisages a retirement benefit and a housing loan facility. To meet worries about inflation, the benefits are defined in terms of current or recent earnings. suspicion that hard won earnings paid in contributions are wasted on

To prevent the natural

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