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"I believe that there is sufficient will in the community at large and in the Legislative Council, for action to be taken now, not two or three years down the road, to implement a retirement protection scheme for our old people."
The Chief Secretary noted that public submissions in the past, together with reactions from the business community and trade union leaders in the last few weeks, indicated that the Government might be able to gain wide support for a mandatory, privately managed provident fund (MPF) system as a "practical way forward".
"We will probably never achieve unanimity of view on the ideal package and it has to be acknowledged that a mandatory privately operated provident fund scheme will not provide the comprehensive coverage that the OPS (Old Age Pension Scheme) was designed to.
"But we must not make perfect the enemy of the good."
She said a motion would be moved in the Legislative Council on March 8. She urged legislators to give clear support to the scheme and the Government would spare no efforts to draw up the details of a viable and practical scheme in consultation with the industry and to prepare the necessary legislation.
"It would also pave the way for consultation with the Chinese side of the Sino-British Joint Liaison Group," she said.
After setting out the main features of the scheme, Mrs Chan said the purpose of a mandatory retirement protection scheme was to cover all those in the workforce.
At the same time, there will be a minimum salary level, below which an employee might choose not to participate in a scheme.
"The minimum salary level recognises that the mandatory contribution may be difficult for those with a very low income, so it enables them to contribute on a voluntary basis. If they decide to contribute, though, then the employer must pay the employers' share.
"This is an important point. The choice rest with employee."