Jake's View | MPF chief seems determined to be an enemy of the people
'Reform' a cruel joke that continues to feather nests of bosses and big fund managers
"The MPF was set up in a way that was employer based and it let 250,000 employers determine the providers in order to eliminate administrative burdens. To let all 2.4 million employees freely choose their providers and make it so they could transfer at any time would effectively change the whole structure of the MPF into an employee scheme."
Will someone please explain a great mystery to me? Why is it that bureaucracies set up to serve the general public so often take the side of special interest groups against the general public?
It happens round the world. Bureaucrats put in charge of food safety routinely side with the food industry against consumers. Bureaucrats put in charge of bank supervision routinely support bail-outs of private banks with public funds. The list is exhaustive.
Prominent on the list is the MPF authority. It condones pilfering of retirement funds by fund managers appointed to invest the money. The scheme was set up so these fund managers could charge scandalously high fees. The bureaucrats appointed to supervise them let them do it.
Why? They are not bribed, I'm sure. I think perhaps the reason is just straightforward pigheadedness. But it amazes me all the same.