14
The Government decided that the problems which a Central Provident Fund was supposed to solve could be tackled more effectively by enhancing social welfare provision, introducing a system of regulation for retirement schemes, improving the Long Service Payment scheme, and encouraging the establishment of more retirement schemes on a voluntary basis.
Progress since 1987
15
As regards
social welfare provision, the Old Age Allowance has been extended in stages from the age of 70 to 65. Other special needs provisions have also been improved. The housing needs of the elderly have been identified by a working group and its proposals are being progressively implemented. Additionally, Health and Welfare Branch is conducting comprehensive reviews of medical and health services, and rehabilitation services having regard to demographic changes and the needs of vulnerable groups in our society.
16
In respect of the regulation of retirement schemes, the Occupational Retirement Schemes Bill 1991 has been introduced into the Legislative Council.
17
As regards the Long Service Payment (LSP) Scheme, in July 1988 the scheme was extended from those who are dismissed to those who retire on grounds of age or ill health.
In May 1991, this Council approved the Employment (Amendment) Bill 1991 which provides for further improvements to LSP
(a)
(b)
removing the difference in rates of payment on grounds of age; and
providing partial LSP entitlement (50% to 90%) to
employees below the age of 45 who
have completed five years service.
The Bill will be introduced into the Legislative Council in
October.
18
The Protection of Wages on Insolvency (Amendment) Ordinance 1991, enacted in May 1991, substantially enhanced the security of LSP and severance payments entitlements against the insolvency of employers.
19
As
regards the number of provident fund/retirement schemes. in Hong Kong, there were 5 469 schemes approved by the Commissioner of Inland Revenue (for tax purposes) at the end of 1987. This number has increased to 10 370 at the end of April 1991. According to a survey by the Census and Statistics
Department, in 1987 there were 8 351 establishments in the private sector offering provident fund/retirement schemes to a total of 468 000 employees, or about 26% of all persons employed at that time. In 1990, the corresponding numbers
increased establishments, 707 000 employees and 33% respectively.
have
to
19
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