can be supported.
- 7
17.
The
proposal for
Government to require that at
least 50% of the assets of private sector occupational
retirement schemes be held in HK dollars would be criticized
as ત form of exchange control and as a crude attempt by
Government to protect civil servants' benefits at the expense
of private sector employees.
18.
Even if the funding problems associated with a
hypothecated pension scheme could be resolved, it would be
difficult to achieve over the years an average rate of return
higher than the cost of borrowing long term money. This led
propose that Government should provide an
guarantee to cover interest rate risks on
the consultant
interest rate
to
borrowing (in HK dollars) exceeding the yield on investments
(in foreign currency).
amount to a Government
supported.
An interest rate guarantee would
subsidy of the scheme and cannot be
19.
There are
also serious doubts about the
receivable purchase scheme.
An
practicability of a
illustration given by the consultant shows a shortfall of
$230 million in a ten-year period for a receivable purchase
scheme which would cover 50% of a civil servant's entitlement
to pension gratuity.
Such a scheme would not be attractive
Page 105Page 106
1
No comments yet.
Private notes are available after approval.