Gov't to seek support for MPF plan

March 27, 2018

Chief Executive Carrie Lam:
We will try our very best to convince the employer groups and the business chambers that this offsetting feature is actually undermining the very purpose of setting up a Mandatory Provident Fund, which is to preserve the benefits for the retirement protection of employees in Hong Kong. Now that the Government has demonstrated the needed political resolve to address this issue and to put in extra funding, I hope that we will be able to convince the employers. But as I said, we will try our best.

The Government will strive to convince employers to support the abolition of the MPF offsetting arrangement.

Chief Executive Carrie Lam made the statement before today's Executive Council meeting.

She said the MPF scheme has existed for nearly 20 years and it is now time to refine it and abolish the controversial arrangement.

"We will try our very best to convince the employer groups and the business chambers that this offsetting feature is actually undermining the very purpose of setting up a Mandatory Provident Fund, which is to preserve the benefits for the retirement protection of employees in Hong Kong.

"Now that the Government has demonstrated the needed political resolve to address this issue and to put in extra funding, I hope that we will be able to convince the employers."

Mrs Lam said the Government will announce the proposal for scrapping the mechanism soon, adding $15 billion was allocated in 2018-19 Budget for the move.