Hong Kong leader Carrie Lam pledges decision ‘as soon as possible’ on ending MPF offset scheme

The chief executive said on Tuesday the controversial Mandatory Provident Fund (MPF) offsetting mechanism had been undermining the benefits of retirement protection for employees, which was supposed to be “the very purpose of setting up” the scheme.

Plans to scrap it have been in the works for years, and in announcing his budget last month, Financial Secretary Paul Chan Mo-po said the administration would commit HK$15 billion (US$1.9 billion) to the move. Several days later, welfare chief Dr Law Chi-kwong said the amount could be more than HK$15 billion and the government would consult major stakeholders to come up with a proposal acceptable to those involved as soon as possible.

The Executive Council would reportedly discuss officials’ proposal to increase to HK$17.5 billion its subsidies for companies to wean themselves off dipping into workers’ pension funds.