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Mandatory Provident Fund Schemes Bill
Following is the speech by the acting Secretary for Education and Manpower, Miss Jacqueline Willis, in moving the second reading of the Mandatory Provident Fund Schemes Bill in the Legislative Council today (Wednesday):
Mr President,
I move the Second Reading of the Mandatory Provident Fund Schemes Bill.
The object of this Bill is to provide for the mandatory establishment of non- governmental provident fund schemes for the purpose of funding benefits on retirement. It will be beneficial for those in the workforce. There is then the separate question of social security: this is being reviewed elsewhere.
The Bill itself constitutes a framework for the mandatory provident fund schemes system. Certain matters are provided for substantively in the Bill, while other important matters will be provided for in future subsidiary legislation. The subsidiary legislation will, of course, be the subject of full and detailed discussion with all the parties concerned.
The Bill is divided into six parts, and nine schedules, covering the main features of the Mandatory Provident Fund (MPF) Schemes system, which I believe Members will be familiar with, so I shall concentrate on specific clauses.
Part I
Clause 4 provides for exemptions from the mandatory provisions of the Bill for persons listed in Part I of Schedule 1. Exempt persons include civil servants who are governed by pensions legislation, teachers to whom the Subsidised Schools Provident Fund Rules and Grant Schools Provident Fund Rules apply, and persons who are already 64 years of age by the time the Schedule comes into operation. There is also provision for exemption for persons coming from overseas to work in Hong Kong who are already covered by a retirement scheme outside Hong Kong; persons, regardless of coverage, who come here from overseas to work for a period of less than 180 days; and also those persons who have been employed for a continuous period of less than 30 days. The employers of such persons are also exempted.