Donald Tsang: Fix MPF Rather Than Build Universal Pensions

Then-Chief Executive Donald Tsang said in May 2011 that rather than universal retirement protection, the government should fix MPF — and would keep improving the system.

Why not universal protection?

The fiscal burden would be too heavy. Tsang argued universal pensions would need big tax or contribution hikes and were fiscally unsustainable; improving MPF to strengthen protection would suffice for retirement needs.

How would MPF be fixed?

Lower fees, tighter regulation, member choice. The government’s direction: press trustees to cut fees, tighten intermediary regulation, and roll out the Employee Choice Arrangement for more options and better protection.

How did people react?

Labour and welfare groups weren’t buying it. Unions and universal-protection advocates countered that MPF misses the incomeless and low earners — no amount of fixing changes that — and demanded the government face the issue with early public consultation.