ABSTRACT
In this chapter, we highlight defi ciencies in the compulsory occupational schemes described in the previous chapter and make recommendations to address them. The recommendations are summarized in the following Chapter 12, together with those pertaining to the voluntary occupational schemes. Our concerns generally fall into two categories. The fi rst category includes matters of scheme design and fi nance. As a result of a wide range of design fl aws, the compulsory schemes generate insuffi cient retirement incomes for those individuals they are intended to cover. The second category includes administrative and operational defi ciencies in the management and oversight of the schemes, which result in suboptimal performance, growing frustration among employer and employees, negative public opinion, and an incentive to evade scheme participation. In addition, we discuss three matters that do not neatly fall into either of the categories and which raise distinct policy issues: investment policy; small employer coverage; and the compulsory nature of gratuity provision.
