Mandatory Provident Fund plan to be finalised

It's planning to scrap the MPF offestting mechanism.

The Government is striving to finalise the plan to scrap the Mandatory Provident Fund offsetting mechanism so it can be included in the Policy Address in October.

Chief Secretary Matthew Cheung made the statement to the media after attending a radio programme today, saying he hopes the plan will be acceptable to both employers and employees.

He said if the plan is not finalised on time for the Policy Address, the Government aims to unveil it by year's-end.

Mr Cheung added the Government is studying ways to help employers set aside enough savings to make employees' severance or long-service payments.

Under the current MPF offsetting mechanism, employers use workers' pension funds for the payments.