Tsang: enhance the MPF rather than waste time on the universal-pension row

On calls for universal retirement protection, Chief Executive Donald Tsang said population ageing badly undermines such a system’s sustainability — forcing social consensus on far-reaching reform in the short term is unrealistic.

Why not universal pensions?

The same sticking points that sank the old-age pension proposal. Tsang told Legco’s Q&A session that today’s universal-protection proposals share two key elements with the government’s old-age pension idea of years past: everyone gets it regardless of contributions, and it’s pay-as-you-go — today’s generation supporting the last. Those two elements were exactly what blocked consensus back then, and the current MPF was born from that impasse.

What should be done instead?

Do the practical work of improving the current system. With ageing, ever fewer young people can support retirees while universal-protection costs keep climbing; avoiding bankruptcy would mean tax hikes, bigger government commitments, even laws forcing heavier employer-employee contributions. Rather than burning time on fruitless debate, do practical things and optimise the existing safety net — the government and the MPFA are already working closely to review and enhance MPF arrangements, alongside continued elderly-welfare efforts.

To follow MPF enhancement progress, visit MPF fund comparison.