TNAG-1609-FCO40-22131-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1987 — Page 143

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22.

introduced in January 1986 as a

The LSP was

s om e protection

measure to provide

for elderly

employees who are

operation, employers indicated their willingness to

dismissed. After only a year of

extend the scheme to cover

retirement through old age

or ill health, and to extend payment to

to extend payment to the families

of

deceased

in this way

workers.

Legislation to extend the

scheme will be put to this Council shortly.

•

35.

The

advan ta ges of the LSP

to the

are

beneficiaries

not sufficiently appreciated.

First, it is non-contributory, thus avoiding any

and I think most important initial reduction in take home pay. Secondly, it is

based on final salary, so its value is not eroded by

inflation during the period of reckonable service.

Thirdly, it is retroactive, SO that service before

the law came into effect count towards the scheme.

24.

is

по

The LSP scheme at present does have two

limitations, which members have not been slow to

mention. Firstly, the conditions under which it is

payable are rather restricted; second, there

requirement at present for an employer to fund his

liabilities under the scheme. On the first point,

the coverage of the scheme will be extended

considerably by the forthcoming amendments,

amendments, and it is

our intention that further improvements will be made,

as fast and as far

as

Our

economic

circumstances