CITY COUNCIL EMPLOYEES (Pension or provident fund on retirement)

Mrs Seow Peck Leng asked the Prime Minister whether the present employees of City Council Departments will be paid a pension or a provident fund on their retirement after the integration of their departments into the Government.

The Parliamentary Secretary to the Prime Minister (Mr Chan Sun Wing) (for the Prime Minister): Mr Speaker, Sir, I have been asked by the Prime Minister to reply. A scheme to provide for the absorption of City Council employees into Government service is under preparation. Consultations at all levels will take place when the scheme is nearer ready. The Government may consider a scheme to enable City Council employees to opt either to retire with Provident Fund benefits or on equivalent pension. Meanwhile, in accordance with the Statement, which appears in the P.A.P.'s Five-Year Plan - I refer to paragraph 7 of the Article "Unified Administration" in The Tasks Ahead, Part I - the City Council staff have been assured that they "need have no fear that they will lose their jobs or suffer any reduction in their salaries or existing Provident Fund benefits."