Why Did Scholars Urge Scrapping the Compassionate-Withdrawal Consultation?

What did Chow Wing-sun argue in 2011?

In July 2011, as the MPFA prepared to consult on early MPF withdrawals for hardship — critical illness, home down-payment arrears, unemployment, children’s overseas study, medical treatment — HKU professor Chow Wing-sun accused it of turning MPF into a “cure-all fund” and urged scrapping the consultation. Average accounts held just HK$100,000-plus, he noted — a year of overseas tuition alone costs that much, so early withdrawals wouldn’t even cover fees; in citizens’ eyes MPF was already “rotten to the core.”

What should come first, scholars said?

Launch semi-portability fast to cut management fees, and scrap the severance/long-service offset — that would restore confidence. HSBC’s Leung Siu-kei also backed removing the offset.

What’s the lesson for workers?

Rather than plotting early withdrawals, grow the pot — choose low-fee, well-performing funds at MPF fund comparison.