PJMACT
R. CENTRAL PROVIDENT FUND
RESTRICTED
This is a matter for the Hong Kong Government. The subject has been debated fully in the Legislative Council. The Hong Kong Government conclued after careful study that it should not set up a Central Provident Fund or make private provident funds compulsory. Its reasons were as follows:
(a) compulsory funds, particularly a Central Provident Fund, would
offer insufficient benefit to low paid workers and those not in steady employment;
(b) a compulsory accumulation of funds could have a serious adverse
effect on the economy;
(c) the Government would prefer to look at ways of improving social
security and improving the long service payment scheme.
Because several private provident funds and retirement schemes have recently become insolvent the Hong Kong Government have decided to examine the working framework of these funds in relation to practice elsewhere and to propose a regulatory framework, subject to public discussion, in the near future.
RESTRICTED