TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 43

carry his account with him on changing mmploymsæt. There is nothing new in this but it may be a useful wresentational point.

ass Benefit: The 36 sickness days allowed

under the Employment Ordinance is a maximum entitlement based on years of service. A worker would only qualify for this amount after three years' continous service, at a rate of one sickness day for each completed month of service. We have decided that there should be a clear date for sickness benefit under the voluntary contributory schame and that, for administrative simplicity, this should begin from the second calendar month of sicknesa, i.e. that there should be a waiting period of 30 days. There is a similar waiting period for able-bodied unemployed adults under the Publie assistance scheme. We note your advice that the benefit could be extended by another two months, however, in view of all the uncertainties, we feel that a cautious approach would be advisable. Accordingly, we propose to start with three months benefit and to increase it later if funds are available.

(d) Death Benefit:

We are not clear whether the death

pay is

payable in full without deduction for other * benefits received under the scheme.

benefit of six – page

ESSLIMO

that this must be NOT We consider that death benefit should be payable if membership were très but the contributor's funds have not been withdra (e.g. during the period of notice of withdrawal from the Scheme). We also feel that, apart from « minimum 6 months benefit payable after the normal waiting peried of 6 months after entry/ re-entry, this benefit should increase with period of contribution up to a maximum of 12 months. No Claim Borus: We accept that a mo claim bomis

would be contrary to the objecta of a social insurance scheme and do not press for this.

the

Return of Contributions: It is proposed that an employee may choose to withdraw at any time or on reaching the age of 60. In the light of your advice, he would receive başk his own contribution plus interest. ifa suggest that three months notice of withdrawal must be riven.

Retirement Benefit: This is not a main feature our scheme. In essence at least in the initial stages, the employee will only get back his own contribution plus interest. In effect, this would constitute a form of enforced savings. To avoid misleading the publi it would probably be best not to mphasize the

"retirment