29 March 2000
Overwhelming support for revised retirement scheme
In response to press enquiries, a spokesman for the Kowloon-Canton Railway Corporation (KCRC) said today that 3,703 staff members have voted on the proposed new defined contribution retirement scheme when voting closed at 6:00 pm yesterday (Tuesday).
A total of 3,746 staff members are eligible to vote.
The results of vote counting by a public accounting firm showed that 95.5% of all eligible staff have voted in support of the revised scheme.That means all existing scheme members will be able to join the revised benefit structure," he said.
The spokesman said the overwhelming support for the revised scheme showed that it was highly attractive to the majority of staff members.Its main features include:
  • The Corporation will maintain its current contribution rates ─ 12% for non-management staff and 16% for management staff.
  • Staff will be able to fully vest the Corporation's contribution after eight years' service.Under the current scheme, they can only fully vest the Corporation's contribution after serving for 10 years.
  • On the day of conversion, staff will be allocated all benefits they are entitled to.There is currently a surplus in the scheme after the allocation of benefits. This surplus will also be allocated to members.
  • Staff can choose to decide their own investment options.Retirement benefits will be based on contributions from staff and the Corporation together with investment returns.