In "pension funds change horses" (THES, April 7), Susie Weldon reports that the Hong Kong Polytechnic University retirement scheme is 90 per cent solvent and that retiring employees may receive fewer benefits when they leave.
This is the situation facing some staff employed on superannuable terms of service, but not for contract staff, while appointees will receive a different package.
The retirement scheme in question, the superannuation fund, has been closed to new membership since July last year. New staff have been, and will continue to be, appointed on fixed-term gratuity-bearing contracts. Next year a retirement scheme structured to overcome our present difficulties will be established with membership open to all employees.
I am offering this clarification to avoid any misunderstanding on the part of your readers, especially those who may wish to join the university in the future, that the compensation package of the institution, in particular the retirement benefits, may be financially unsound. The problem has been caused by the strict application of new legislation requiring our fund to be 100 per cent solvent at all times.
Miranda Leung
Vice president (administration)
Hong Kong Polytechnic University