PENSIONS (AMENDMENT) BILL

Order for Second Reading read. 3.59 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Under the existing provisions of the Pensions Act, a Government officer who has been allowed to retire before the minimum age of retirement to contest Parliamentary elections will qualify for pension benefits in respect of his past service in the Civil Service only when he attains the minimum age of retirement. His dependants will not be eligible for a gratuity if he dies before reaching the minimum retirement age.

However, dependants of a Government officer who has been allowed to retire under section 7(2) (j) of the Act, that is, after completing fifteen years of service in special circumstances, and who dies before reaching the minimum age of retirement, will receive a death gratuity. Besides, the Act also provides that where such an officer becomes physically or mentally incapacitated to such an extent that he is incapable of continuing in any employment before he has attained the minimum age of retirement, he may be paid his pension benefits with effect from the date he is deemed to be so physically or mentally incapacitated.

Therefore, the officer who retires to contest Parliamentary elections is at a disadvantage compared with an officer who is allowed to retire under the special circumstances of section 7(2) (j).

The purpose of the Bill is to amend the Pensions Act so that in the case of a Government officer who is permitted to retire to contest Parliamentary elections -

(a) he shall be eligible for pension benefits if he becomes physically or mentally incapacitated; and

(b) his dependants shall be paid a gratuity in respect of his past service in the Government service in the event of his death before reaching the minimum retirement age. This will bring his position in line with that of an officer who retires under section 7(2) (j) of the Act.

Mr Speaker, Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. - [Mr Hon Sui Sen]

Bill considered in Committee; reported without amendment; read a Third time and passed.