What Did Chan Yuen-tsang Say About Raising the Contribution Ceiling?

What did he write in March 2011?

CityU MBA director Chan Yuen-tsang backed raising MPF contribution caps: a decade after the 2000 launch, inflation demanded periodic adjustment so accounts kept pace with prices. His experiment — asking 800 people to choose HK$5,000 cash or a HK$6,000 MPF injection — saw cash win unanimously; citizens would take HK$1,000 less for money in hand.

Why would workers accept a higher ceiling?

Both sides pay more, and the employer’s extra is part of total pay; but raising low earners’ requirements only cuts their saving rate, leaving them short in retirement and on CSSA — kicking the ageing problem down the road.

What did he propose?

While reserves were flush, create an “ageing fund” with HK$200–300 billion, drawing yearly to contribute MPF for low earners — the government foots the bill eventually anyway.