TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 143

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particular, a proper actuarial costing would be required to

determine rates of contribution and hence the benefits available

under-the scheme. The aim would be, however, to keep

contributions low (of the order of 2% employees, 2% employers)

with benefits pitched to correspond to the low rate of

contributions.

This should be possible, since the scheme is

designed to provide protection during working life rather than

a benefit for retirement. Informal discussions with employees

and employers association have indicated that the response to

a voluntary contributory scheme would be non-committal or

even welcoming in principle rather than hostile.

36.

376

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freeze his membership by ceasing to contribute to

Is this unemblyment

beneft?

It is suggested that the main features of the scheme

might be along the following lines:

a) Person able to join the scheme

i) Any person in work, apart from the self-

employed, would be entitled to join in respect

of that employment, unless he were working for

a contracted-out employer.

ii) An employer could contract-out of the scheme

if he could show that the benefits available

as an occupational benefit to a particular

employee or class of employees were at least

as good as those provided under the scheme.

iii) An employee could opt to leave the scheme. If

he did, he would cease to be eligible for

benefit, apart from retirement benefit reduced

contribution bo in relation to his period of membership in the

scheme. Alternatively, he could withdraw

entirely from the scheme, in which case he

would receive back his own contributions plus

proportion of the employere-contributions -

what happen lithe amply scentslutn