Budget Speech

Injection into Mandatory Provident Fund Accounts

177.      The Mandatory Provident Fund (MPF) System and other occupational retirement schemes have been functioning well to assist our working population to save up for better retirement protection. We hope to increase the retirement savings of scheme members. In this connection, I propose to make a one-off injection of $6,000 into the MPF accounts of all MPF scheme members and members of occupational retirement schemes covered by the Employment Ordinance of Hong Kong as of 23 February 2011. To assist more citizens in preparing for retirement, no salary ceiling will be imposed for the injection proposal. The proposal will not increase inflationary pressure and is drawn up in the light of our fiscal position.

178.      I have earmarked $24 billion for this measure. The Financial Services and the Treasury Bureau will announce the details in due course, and the Mandatory Provident Fund Authority will assist in implementing the injection. I expect that the injection of funds into the MPF accounts will start in 2011-12.

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