Tsang: enhance the MPF system instead of reopening the pension debate

(Editor’s note: this report was originally in English and is rewritten in Chinese per this site’s practice.)

Chief Executive Donald Tsang told his Legislative Council question-and-answer session that the government is working with the MPFA to review and enhance the MPF system — and that improving the existing safety net beats starting another social debate over universal retirement protection.

Why not universal retirement protection?

An ageing population would badly hit its sustainability. Tsang said the MPF emerged because the public opposed the government’s old-age pension proposal. A universal scheme shares a pension’s key traits: everyone is entitled regardless of contributions, so the current generation supports the previous one. Ageing means ever fewer young people to bear retirees’ living costs while protection-system expenses keep rising.

What does he propose instead?

Review and enhance what exists. “Instead of starting another social debate, it is more constructive to review and enhance our existing protection system,” Tsang said. “We will also continue to put effort into elderly welfare.”

To follow the latest enhancements to the MPF system, visit MPF fund comparison.