TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 146

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24

and bride munists?

(iii)

rembers as in b(v) above. The finances of the

scheme would be outside the Government's accounts. There would be an independent statutory authority with members appointed by the Governor, which could include contributors.

Administration of the scheme would be the

responsibility of the statutory authority.

However, to facilitate cross-checking with the

public assistance scheme (see b(vi) above), actual

payments would best be handled by the

A

Social

Welfare Department on an agency basis without

charge. A Government subsidy towards administratior,

costs may be appropriate.

Such costs would

initially be high in proportion to contributions.

But provided the scheme was reasonably successful,

it is thought that the administrative costs might

settle down to around 4 of contribution income.

(comparable figures in the U.. are 45, Malaysia 4%, Singapore 3% and Fiji 4, the latter

3 being for provident funds),

(iv) The Government could further assist in getting

this scheme off the ground by making available

an initial pump-priming payment, and could also provide low interest loans (as with the silicosin

scheme) to meet any temporary funding difficulties.

(v)

could

Tax incentives to encourage participation in the scheme should be considered (e.g. exempting the Jump

sun death and retirement benefits from tax and

allowing employers' contribution to be deductahin

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at this

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