Carrie Lam speaks at a forum on retirement protection. Photo: RTHK
The Chief Secretary, Carrie Lam, has conceded that the Mandatory Provident Fund (MPF) scheme is not enough to protect the welfare of local employees and the elderly.
Speaking at a forum on retirement protection on Tuesday, Lam admitted the administration of the existing MPF scheme could have been better.
"The Mandatory Provident Fund system has to be improved – fees must be lowered and 'leakage' as a result of early withdrawals by employers to offset severance and long-service payments must be tackled", she said.
But Lam again warned of a huge financial burden on the government if a universal pension scheme was implemented.
Richard Jackson, President of the Global Aging Institute in the US which studies ageing populations across the globe, said Hong Kong's MPF system was deeply flawed and needs to be reformed.
He said contribution rates are too low and administrative charges are very high by international standards.
http://news.rthk.hk/rthk/en/component/k2/1253907-20160412.htm
