TNAG-2671-FCO40-3868-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-retirem-1993 — Page 15

147DEC-1990 19:17

COMMS OFFICE (GOVT HOUSE)

602 530 3284

P.11

10

fourth, the rates of contribution for employers

and employees are likely to be lower, compared to

a RPS or CPF.

17.

Since ༣ contributory OPS functions On tho principle of the working population supporting the aged, it does have some problems :

first, it has all the disadvantages of

compulsory

contributions,

smaller scale;

although

Of a

second, the contribution

time

rate would go up in as the ratio of the working population to the aged declincs. This has created problems in quite a number of countries in Europe, for example;

third, those who have already joined private retirement schemes will see it as an additional burden as they cannot opt out; and

fourth, enforcement

of contributions might be

problematis given that the eventual benefit is

not related to the level of contribution.

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