HONG KONG LEGISLATIVE COUNCIL - 7 February 1990
香港立法局
一九九○年二月七日
29
Alary cost? It is now over three years since the last actuarial valuation of vernment's scheme, and in view of recent large salary increases, should be a comprehensive review now?
EF SECRETARY: Sir, the amount of money required to fund Government sions in the period up to 1997 has been estimated by the United Kingdom vernment Actuary's Department as somewhere in the region of $120 billion. early this is a very large sum, a sum which we do not believe could asonably be set aside to fund the pensions on a full basis. We are, however, raware that there is concern amongst the Civil Service about security of ensions, and we are looking at a number of proposals in that respect. On the question as to what percentage of recurrent expenditure is now spent on pensions, the figure I have is 4% per annum of recurrent expenditure, which represents a figure for 1989-90 of $1,977 million.
MR. DAVID CHEUNG: Sir, does the Chief Secretary not consider that the 25% on-cost for the Civil Service is rather generous when compared with the 5% to 15% in the other sector, after taking into account the fact that civil servants enjoy high job security while appointees in other sectors could lose their jobs ʼmuch more easily?
CHIEF SECRETARY: Sir, I think in making judgments about the cost of civil service pensions, one has to compare the costs with the flexibility that is provided by other types of scheme. Clearly, if there is a higher degree of flexibility in the provident schemes, then the benefit is one of flexibility as well as the amount received, whereas the benefits accrued under a pension scheme can only be received at the end of a long career; it is part of the pension scheme's purpose to hold and provide continuity in the service and to maintain people in the service for long periods of time. And that is offset against the flexibility which is in the private sector.
MR. ARCULLI: Will the Chief Secretary please elaborate on the pension on- cost percentage for various bands on the Directorate and Master Pay Scales, and comment on the discrepancy, if any, between the various bands?
CHIEF SECRETARY: Sir, I do not have that detail with me. I will try to provide an answer in writing to Mr. ARCULLI. (Annex II)
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