HK retirement protection scheme MPF flops, claim those marching for new deal

October 21, 2013 Leave a comment

MPF flops, claim those marching for new deal
Monday, October 21, 2013
About 40 unionists went on the march yesterday to demand a comprehensive retirement protection scheme. Members of the Hong Kong Confederation of Trade Unions marched from Hoi Fu Centre in Admiralty to the government headquarters at Tamar. In urging the introduction of retirement protection, they called for the abolition of the Mandatory Provident Fund Scheme mechanism whereby employers’ MPF contributions are used to offset long service and severance payments.The marchers included representatives of the catering, property management and security sectors and domestic helpers. Besides being in their working clothes, they sported white wigs to highlight the fact that people must keep working even when they have reached their old age as they lack the means to retire. The situation is intolerable, the unionists said. They argued that the MPF was established to protect life after retirement, but employees effectively lose long service and severance payments. “Dismissal compensation is gone,” the confederation said. Unionist leader Kwok Siu-kit said: “The MPF has been implemented for over 10 years and has proved to be a failure. But comprehensive retirement protection could guarantee a more stable life in retirement.” He backed the idea of those aged 65 or above being able to draw HK$3,000 every month automatically and without checks on their assets. He said workers have concluded that the Mandatory Provident Fund Scheme will not support them after retirement. Many people did not have much of an income, he added, and the MPF benefits of 20 or 30 working years are only enough to keep them going for a few years after retirement. HILARY WONG

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