The Mandatory Provident Fund offsetting mechanism must be abolished, Chief Secretary Matthew Cheung says.

Speaking to the media today, Mr Cheung said the Government's target is to remove the mechanism within this administrative term.

He said the community has reached a consensus that the mechanism should be abolished, but there are different views on how to remove it.

The Government will continue working with different stakeholders to reach a consensus on the proposal to scrap the offsetting arrangement, he added.