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In October 1992, the Government released the consultation paper "A Community-wide Retirement Protection System" which proposed a mandatory, contributory retirement protection system for all full-time employees under the age of
65.
The proposed system found little public support in the absence of a guarantee mechanism to deal with benefit losses and because it would not help those outside the workforce.
Taking heed of these points, the Government in July last year published a second consultation paper entitled "An Old Age Pension Scheme for Hong Kong."
The scheme would have given all eligible elderly persons a monthly pension of $2,300, and would have been funded by a modest contribution from employers and employees and an affordable level of financial input from the Government.
At the end of a three-month consultation period, there was no clear public consensus for the scheme to proceed.
"We had to decide where to go next," Mr Leung said, noting that there were suggestions for the Government to maintain the status quo and to continue to encourage the establishment of occupational retirement schemes on a voluntary basis.
But he said the Government did not think it should follow this road as there would still be many employees, particularly in smaller businesses, who would be without retirement protection for the foreseeable future.
"Having analysed the submissions on the Old Age Pension Scheme and following nearly 30 meetings with Legislative Councillors, trade union leaders and representatives of the business community, the Government proposed the MPF which has won majority support from the Legislative Council today." Mr Leung said.
End/Wednesday, March 8, 1995
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