Lawmakers have approved HK$33.5 billion in funding to help with the abolition of the Mandatory Provident Fund (MPF) offsetting mechanism. The mechanism will be scrapped from May 1 next year, and a 25-year subsidy scheme will provide for employers as they adapt to the policy change by sharing the costs associated with severance and long service payments during the transition period. Lawmakers endorsed the funding request at a Legco Finance Committee meeting on Friday. Secretary for Labour and Welfare Chris Sun said the government plans to engage a processing agent to assist in the implementation of the subsidy scheme, by facilitating, vetting and approving applications. Federation of Trade Unions (FTU) lawmaker Bill Tang, for his part, said he's concerned that some people may not understand the arrangements well. "There may be some cases in future because we know that maybe some employers or even some employees do not understand the arrangement of the cancelling offsetting mechanism... We can foresee some disputes between employees and employers, so the FTU is very concerned about it," Tang said.
