PJMACT

RESTRICTED

R.

-

CENTRAL PROVIDENT FUND

Matter for Hong Kong Government. Subject debated fully in the Legislative Council.

Hong Kong Government concluded after careful study that it should not set up Central Provident Fund or make private provident

funds compulsory.

Main reasons were :

Compulsory funds, particularly Central Provident Fund, would offer insufficient benefit to low paid workers and those not

in steady employment;

A compulsory accumulation of funds could have serious adverse

effect on economy;

Government would prefer to look at ways of improving social

security and improving long service payment scheme.

Hong Kong Government have decided to review the working

framework of provident funds and retirement schemes.

Review will examine practice elsewhere and propose regulatory

framework, subject to public discussion, in the near future.

CENTRAL PROVIDENT FUND

RESTRICTED

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