Exco convenor WK Lam. File photo.
The convenor of the Executive Council, WK Lam, has said it would be impossible to introduce a universal retirement protection scheme in Hong Kong.
He said the labour market is shrinking, and average salary increases for workers have slowed down.
Lam also said that public support for such a scheme has decreased.
He said the government should instead improve the Mandatory Provident Fund scheme, by lowering administrative fees and scaling down the offsetting mechanism, which allows employers to use their MPF contributions to cover the cost of severance and long service payments.
Last year, a research team commissioned by the government to study retirement protection recommended a universal pension plan that would pay elderly people HK$3,000 a month.
Since then, the government has faced criticism that it has been dragging its feet on the issue. A public consultation is due to begin this month.
http://news.rthk.hk/rthk/en/component/k2/1230695-20151219.htm