XN000022-1995-07-24 — Page 2

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Update on MPF Schemes Bill

Following is an update on the Mandatory Provident Fund Schemes Bill and the Government's position on the committee stage amendments.

The Mandatory Provident Fund Schemes Bill

This paper provides an update on the Mandatory Provident Fund Schemes Bill, on which the Second Reading Debate will resume this Wednesday (July 26),

It also outlines a number of changes that the Government will be proposing at the committee stage and explains why it is important for the MPF Schemes Bill to be debated in full, and enacted, within the current session, rather than let the discussion be deferred until the next legislative session.

On a proposal by the Hon Michael Ho Mun-ka to move a procedural motion to adjourn the resumption of the Second Reading Debate, the Government urged LegCo members to vote against such a motion for the following reasons:

The community deserves to know where it stands on the subject of retirement protection. Members deserve the opportunity to vote for the Mandatory Provident Fund Schemes Bill on its merits.

The Legislative Council urged Government to expedite the introduction of a mandatory retirement protection system in March this year. Enactment of the Bill setting out the necessary legislative framework is the most expeditious way of doing this. The main features of the Bill are well-known. Any further delays will only frustrate the community's aspirations for the early introduction of a retirement protection system.

Government will be moving Committee Stage amendments to clauses 44-46 of the Bill to allow for subsidiary legislation to be subject to approval by resolution of the Legislative Council up until the date of commencement of clause 6 in its entirety. Government will discuss the subsidiary legislation with Members of the Legislative Council and other interested members of the community.

The Bill will lapse if the motion becomes effective. Such a delay will create unnecessary uncertainties and will substantially reduce the accrued benefits of scheme members.