The Mandatory Provident Fund (MPF) System was set up as one of the pillars under the multi-pillar retirement protection model advocated by the World Bank to prepare the working population for retirement. Since its inception on 1 December 2000, a number of reforms have been implemented to further improve the MPF System. Among them is the Default Investment Strategy (DIS) which, to be launched on 1 April, is designed primarily for scheme members who are not interested in managing or do not know how to manage their MPF. The business sector has made a number of suggestions to the Government, including that MPF contributions should also come from the Government in addition to employers and employees, as well as a comprehensive review and integration of the existing MPF, severance payment and long service payment arrangements. While enhancing protection for employees, the System should also take into account the financial burden on businesses, especially SMEs, and Hong Kong's overall competitiveness.
As the head of the Mandatory Provident Fund Schemes Authority (MPFA), Dr David Wong Yau-kar will talk about the challenges the MPFA faces, such as how to further lower the fees of MPF funds, offsetting of MPF as well as its next work target, eMPF, a centralized electronic platform at the Chamber's "Town Hall Forum Series" on 25 April.