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A bill which seeks to provide the legal framework for the Mandatory Provident Fund Schemes Authority (MPFA) to implement the budget proposal to inject $6,000 into a Mandatory Provident Fund (MPF) account of each eligible MPF scheme member and MPF-exempted Occupational Retirement Scheme (ORSO scheme) member who earns not more than $10,000 a month will be gazetted this Friday (June 13).
Amendments to the Mandatory Provident Fund Schemes Ordinance are required because the existing law does not provide for contributions to be made to MPF accounts by any party other than employers, employees and self-employed persons.
The bill, namely the Mandatory Provident Fund Schemes (Amendment) Bill 2008, will also provide the MPFA with the power to collect and make use of necessary information for the purpose of compiling a list of persons who are eligible to receive the injection. The scope of the bill does not cover the eligibility criteria for receiving the injection, which was announced by the Financial Secretary earlier.
A Government spokesman said today (June 10), "The bill is an important step for implementing the budget proposal. Early enactment of the bill will enable the MPFA to conduct the data collection, consolidation and verification work in respect of some 5 million MPF and ORSO accounts for compiling a list of eligible recipients.
"We hope the legislative exercise will be completed as soon as possible, and we will facilitate the Legislative Council process in this regard. We strive to commence injection of funds to the relevant accounts within 2008-09."
The budget proposal demonstrates the Government's commitment to enhancing retirement protection for lower-income working people. The Financial Secretary announced on April 23, 2008, that the scope of the injection exercise would be expanded.
The following categories of persons would be eligible if their monthly income does not exceed $10,000:
* holders of an MPF contribution account on February 29, 2008;
* holders of an MPF preserved account on February 29, 2008, who last contributed to an MPF account or was an ORSO scheme member during the one-year period before the announcement of the Budget (i.e. between March 1, 2007, and February 29, 2008);
* members of MPF-exempted ORSO defined contribution schemes on February 29, 2008; and
* members of MPF-exempted ORSO defined benefit schemes on February 29, 2008.
According to a preliminary estimate by the MPFA, about 1.7 million people would be eligible to receive the injection.
The bill will be introduced into the Legislative Council next Wednesday (June 18).
Ends/Tuesday, June 10, 2008
Issued at HKT 15:30
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