The Government is striving to come up with a policy directive on the way forward to handle the offsetting arrangement for the Mandatory Provident Fund.
Speaking to the media on her return from the UK and Germany today, Chief Secretary Carrie Lam said it is a complicated issue whether to abolish the arrangement to offset severance payments and long service payments against the fund's accrued benefits.
The Government must study the issue in depth before making a decision, which must balance employees’ retirement protection and employers’ operating costs, especially when most employers are small and medium enterprises.
Implementation of a solution will have to wait until the next-term government as it involves amending legislation, she added.
On the two Hong Kong people still hospitalised after being attacked on a German train, Mrs Lam said Au Yeung Chi-kin, who suffered a serious head injury, is making good progress and should be transferring to a rehabilitation centre next week. The Government will continue to provide assistance to them.
