TNAG-2671-FCO40-3868-Future-of-Hong-Kong-Sino-British-Joint-Liaison-Group-retirem-1993 — Page 8

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The concept, however, is likely to be controversial due to the income redistribution element inherent in the system. Although income redistribution does take place in Hong Kong through the implementation of social policies, a contributory old age pension system could be regarded as going too far in that it seeks to redistribute income more directly than any other social policies.

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There are also other disadvantages -

(a)

all the disadvantages of compulsory contributions are applicable, albeit on a smaller scale as the percentage of contributions is likely to be lower;