WIDOWS' AND ORPHANS' PENSION (AMENDMENT) BILL

Order for Second Reading read.

10.34 a.m.

Mr S. T. Stewart: Mr Speaker, Sir, I have His Excellency's consent to proceed with this Bill. I move, "That the Bill be now read a Second time."

The purpose of the amendments proposed in the Bill is to provide additional options not at present allowed by the principal Ordinance to contributors to the Straits Settlements Widows' and Orphans' Pension Scheme who retire under the provisions of the Retirement from the Public Service (Compensation) Ordinance.

The present law provides for a compulsory contribution to the scheme of 4 per cent of officers' salaries, and retiring officers are given a choice between paying 4 per cent of their last drawn personal emoluments or 4 per cent of their unreduced pension. Officers who are compulsorily retired under the Compensation Ordinance as a result of the implementation of the policy of Malayanisation are denied the full benefits of the scheme to the extent that their compulsory retirement prevents them from contributing sums which increase progressively as the officers' salaries increase by incremental advancement or by promotion.

It is therefore desired, Sir, to make the following three further options available to officers retiring under the Compensation Ordinance:

(a) to cease contributing to the scheme and to have the prospective benefits frozen from the date of cessation; or

(b) to pay into the scheme an actuarially computed amount which would freeze their prospective benefits at the amounts produced as if they had continued to contribute after retirement at 4 per cent of last drawn salary or 4 per cent of unreduced pension; or

(c) to allow contributors to withdraw an actuarially calculated proportion of their contributions in return for a complete relinquishment of their rights under the scheme.

Clauses 2, 3 and 4 of the Bill now before the House, and new rules IX and X are designed to give effect to this intention. Sir, the legislation is, in the nature of things, complicated, but the examples given in clause 8 (b) of the Bill show the effect of the alternatives. Members are assured that the options have been based on actuarial advice and that no loss of Government funds is incurred.

The Government of the Federation of Malaya has already amended its Widows' and Orphans' Pension legislation to provide for these similar additional options, and the Bill will now bring us into line with the Federation in this matter.

The Bill also makes provision to enable members of the Straits Settlements Widows' and Orphans' Pension Scheme who are compulsorily retired in the Federation of Malaya to avail themselves of the same options.

Sir, the other clauses in the Bill are consequential amendments to the principal Ordinance. I would like to point out that there is a very minor typographical error in the last line of the explanatory note, where the figure "8" should be "9". I shall, in the Committee stage, move a small amendment of which I have already given notice. Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill. [Mr Stewart].

Bill considered in Committee.

[Mr SPEAKER in the Chair]

10.39 a.m.

Clause I-

Amendment made: In page 1, line 5, to leave out "1957" and insert "1958".- [Mr Stewart].

Clause 1, as amended, ordered to stand part of the Bill.

Clauses 2 to 9 inclusive ordered to stand part of the Bill.

Bill reported with an amendment; read the Third time and passed.