TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 44

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"retirement" aspect at all. Incidentally, we are pizzled by the words "not already refunded" in the first sentence of para. 15 of your note and would be grateful for alarification.

(h) Minimum period of contribution and are criteria;

To prevent late comers from benefitting, it seems desirable to stipulate a maximum age beyond which a person may not join the scheme or to draw the full benefits, even if he coutimes to contribute. The Inlications are that those aged 40 and over are more interested in this schees than the younger groups. Accordingly, will it be necessary to debar those aged 55 or more from joining, end should there be special requirements for those agad 50 and over on first joining? It may be ressonable to allow sickness benefit if a person continues to ecatribute beyond 50, but we accept that the duat benefit would not be payable after the 60th birthday.

(1) Limit of Contribution:

The maximum contribution of 140 each from employer and employee was based on an earnings ceiling of $2,000; this watched the limits prescribed by our employment al2 workman's compensa tien legislation. It is likely that a new limit of $3,000 will be set shortly. Would a maximum contribution of 360 och from employer and employee hæe may effects on bonefits payable, apart from the maximum mums involved:

(j) Administrative Costs: The Green Paper proposed

that the Government should

meet the administrative costs of the scheme. Could you advise on the extent to which such a Government contribution is critical to the financial viability of the scheme?

In your letter to Thomas Lee, you kindly offered to arrange for one of your officers to visit Hong Kong me that we could discuss problems on the spot. #e feel this would be most useful. Perhaps you would let us know how soon this might be arranged? We would suggest a visit of about a week in My or early June.

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As part of our assesment of public response to this scheme, we commissioned a public opinion survey in conjunction with the University of Bong Kong. A copy of this report is attached, in orse any of these finds are material to your calculations.

4. I shall