XN000022-1995-05-05 — Page 3

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Government releases MPF consultancy report

The consultancy report commissioned by the Government to examine in details various aspects relating to the establishment of a privately-run mandatory provident funds (MPF) system in Hong Kong was released today (Friday).

Presenting the report to the Manpower Panel of the Legislative Council, the Secretary for Education and Manpower, Mr Michael Leung, stressed that the document was only the consultants' report and that the Government had not taken a position on its detailed findings.

"We are not bound to accept all the recommendations. Indeed, we have reservations on some of the recommendations, such as the interface between MPF system and existing schemes under the Occupational Retirement Schemes Ordinance (ORSO), and the advice that a residual provident fund scheme may not be needed," Mr Leung said.

Mr Leung told Legislative Councillors that while the Government was still considering the various issues and recommendations covered by the report, the Administration wished to share the report with them at the earliest opportunity in view of the importance of the subject.

He noted that the consultants shared the Government's view that the primary legislation enabling the introduction of the MPF system should be simple in design for better administration and understanding.

"Although Government has not yet decided on the detailed features of the primary legislation, there should be no surprises," he said.

Mr Leung recalled that in his speech to the LegCo motion debate on retirement on March 8, he had already outlined the main features of the primary legislation which would include:

coverage and eligibility

contributions

vesting

preservation and portability of benefits

benefit payments

residual provident funds scheme

MPF Authority

compensation fund

offences

provision for the making of subsidiary legislation and

provision for the MPF Authority to make rules.