Appendix 15
Subsidized Schools Provident Fund

  Teachers joining the Subsidized Schools Provident Fund are subject to the Rules of the Fund which are statutory rules made under the Education Ordinance. The following are extracts of certain main features for easy reference only.

1. With effect from 1 September 1980, Government's subsidies towards the employers' contribution in respect of the Subsidized Schools Provident Fund shall be made in accordance with the following scale :
 
  Length of continuous
contributory service
Employers' contribution
(percentage of employees' salary)
  Less than ten years
5%
  Not less than 10 years )
10%
  but less than 15 years )

 
  Not less than 15 years
15%

2. Employees' contribution shall remain at 5%.

3. Every teacher who is not over the age of 55 years upon his first appointment to a school on or after 24 June 1982 is required to contribute to the Fund. A part-time teacher employed on a regular basis may at his option contribute to the provident fund. Full-time teachers taking up part-time teaching on a temporary basis will not entitle to further contribute to the provident fund.

4. An annual dividend to each contributor of 5 per cent of his account is guaranteed and any shortfall in funds for the purpose of the guaranteed dividend Is to be met by a loan (repayable without interest) made by the Government to the Funds. No supplementary dividend may be declared if there is an outstanding loan.

5. Benefits to contributors are increased on the following sliding scale according to length of continuous contributory service on withdrawal from the Funds in normal circumstances :
 
   
Benefits on Withdrawal


Length of continuous
contributory service
 
Contributor's
own contribution
plus dividends
declared thereon
Government's
donation plus
dividends
declared thereon
Less than 5 years  
100%
Nil
Not less than 5 years )
100%
50%
but less than 6 years )

   
Not less than 6 years )
100%
60%
but less than 7 years )

   
Not less than 7 years )
100%
70%
but less than 8 years )

   
Not less than 8 years )
100%
80%
but less than 9 years )

 
Not less than 9 years )
100%
90%
but less than 10 years )

   
Not less than 10 years )
100%
100%