CONFIDENTIAL
3
10.
one.
A
According to
actuarial assessment, new entrants to the voluntary WCPS should contribute at a slightly higher rate because a voluntary scheme is more expensive than a compulsory compulsory WCPS is cheaper due to the presence of unmarried members who pull down the total rate of contribution required of the scheme as they do not receive any benefit thereunder.
As for the voluntary WCPS, it is anticipated that few officers would join the scheme until they marry, and hence a higher contribution rate is required.
11.
As such, the fact that Model Scale I staff were formerly denied the opportunity to join the compulsory WCPS is not relevant in determining the rate of contribution appropriate to them under the voluntary scheme. We consider that so far as an officer joins the scheme on a voluntary basis, he should be subject to the revised rate appropriate for a voluntary scheme.
12.
On the waiver of a medical examination for Model Scale I staff, having regard to the fact that these officers were formerly excluded from joining any dependant pension schemes and that Government as a good employer, should encourage its employees to make provisions for their dependants, we recommend that the staff request be acceded to exceptionally. Serving Model Scale I staff who wish to join the voluntary WCPS within the option period will not be required to attend any medical examination. On a similar basis, this concessionary arrangement will be extended to all serving female officers and junior disciplined services staff who wish to join the scheme during the option period after the introduction of voluntary membership under the WCPS.
Application of Revised Rate of Contribution
13.
Staff propose that any future adjustment of the rate of contribution to the WCPS arising from actuarial reviews should apply to new entrants only.
14.
In the current review, GAD has advised that serving members may continue to contribute at the old rate because their level of benefits remain unchanged under the voluntary WCPS. For the same reason and also in line with the usual practice that serving officers are given preserved rights if changes are to their disadvantage, we support this proposal.
CONFIDENTIAL
No comments yet.
Private notes are available after approval.