TNAG-2733-FCO40-3939-Future-of-Hong-Kong-constitutional-development-1993 — Page 46

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pensions increased Bach year in line with

inflation.

14

In addition, both the Joint Declaration and

the Basic Law

guarantee

that

pensions will

continue to be

paid after 1997 on terms no

less favourable

than before that date, and

irrespective ΟΙ nationality and place of

residence.

123.

Nevertheless,

worried about their

I recognise that civil servants are

pensions after 1997. After detailed

propose to inject

study, we now feel able to recommend that a pension reserve fund be established by resolution of the Legislative Council under Section 29 of the Public Finance Ordinance. Subject

to this Council's approval, We also

$7 billion into the Fund over two

resources would ba used exclusively to pay pensions in the unlikely event that they would not be covered from general myself imagine Hong Kong ever facing a

revenue.

I cannot

years.

The Fund's

financial crisis of this sort. But I believe that the fund

will contribute to the Civil

Service's confidence in its

future.