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    Democratic and Reform Resources Centre, Powered by Joomla!
    30 Nov 2010 列印 E-mail

    Category

       Social Security Policy

    Issue

    • The Tenth Anniversary of the Mandatory Provident Fund

    News Content

    • On the eve of the tenth anniversary of the Mandatory Provident Fund, the MPF head Anna Wu Hung-yuk said yesterday the MPF is failing to provide full retirement security, and a debate is needed on how it can be improved.
    • Wu said there was an urgent need to address the fund in view of the plight of elderly people living in poverty, and the aging population. She also noted that fund was not for all, as it only cares the working population. Family housewives’ contribution is totally neglected, thus not recognized.
    • She added it was time to look at the World Bank’s two extra pillars to retirement protection published in 2005 – a non-contributory social pension and support in health care, housing and individual assets.

    Questions

    • Retirement benefits comprised! Even Wu admitted said retirement benefits were also being reduced by an arrangement that allows severance and long-service payments to be offset against MPF benefits when an employee retires. In the first six months of the year, about HK$1.1 billion of MPF-accrued benefits were used in this way!
    • An extremely high administrative cost! The yearly administrative cost is reported to be as high as 6.5 billion.
    • The MPF fails to address the immediate retirement needs. Elderly people are frequently seen on the street, collecting paper boxes or newspaper to make a dollar or two. It is unacceptable for a prosperous city like Hong Kong to turn a blind eye to the plight of the elderly people.
    • The MPF also fails to provide a pension for all. The housewives who have been contributing to the development of prosperous Hong Kong are rejected and recognized.
    • The pension should be designed for all, and cared for all, but the tiny proportion of the population, such as the finance and banking industry. Is it a business? No, it is not a business. It should be socially run, and socially beneficial.