Return on teachers' fund slumps

PUBLISHED : Wednesday, 27 January, 1999, 12:00am
UPDATED : Wednesday, 27 January, 1999, 12:00am

Teachers have suffered during the financial turmoil with a sharp decline in the growth of their provident fund.

Members of the Subsidised Schools' Provident Fund saw their contributions grow by just five per cent, down from 12.7 per cent in the previous year.

Chairman of the fund's board Ying Yu-hing said the fund stood at $21.7 billion at the end of August, nearly $2 billion less than the previous year. About 34,900 teachers from subsidised primary and secondary schools are members of the scheme.

Each teacher contributes five per cent of their monthly salary and their employer another five per cent. 'The currency turmoil is a great blow to us. But we are not alone,' he said.

'We have sold some shares and bought more bonds at fixed interest rates to reduce the risk of losing money. We hope the rewards will be better in the coming year.'