The Government is to bow to legislators' demands and cut proposed salaries for senior officials of the Mandatory Provident Fund Schemes Authority (MPFA). Secretary for Financial Services Rafael Hui Si-yan yesterday agreed with legislators' criticisms, saying the proposed salaries were 'too generous under current economic conditions'. Legislators had requested a review after learning that, under a consultant's proposal, the MPFA managing director would be paid $5.7 million a year, with bonuses of up to $800,000. Mr Hui told a meeting of the MPFA advisory committee that the Government would cut the salaries proposed by the consultant. However, the level of the reduction had to be decided by Financial Secretary Donald Tsang Yam-kuen, he said. All 12 members of the MPFA advisory committee, which is mainly made up of legislators and pension-fund industry practitioners, yesterday attacked the proposed wages as unacceptably high. The deputy managing director would be paid $4 million a year, and three executive directors about $2.5 million each, according to the consultant's proposals. 'I agree that the MPFA managing director should be paid less than the Hong Kong Monetary Authority [HKMA] chief executive and the Securities and Futures Commission [SFC] chairman as the job nature of the MPFA is less complex than the other two,' a member of the committee quoted Mr Hui as saying. HKMA chief executive Joseph Yam Chi-kwong receives about $8 million annually, while SFC chairman Andrew Sheng receives about $6 million a year. Mr Hui, who is paid $2.1 million a year, is seen as a suitable candidate to be managing director of the MPFA. In arriving at its proposal, the consultant's report reviewed salary levels at 20 companies, but the Government considered the proposal too high considering the local economic downturn, Mr Hui is said to have told the committee. The report, conducted by KPMG Peat Marwick, was approved by the MPFA board two weeks ago. MPF advisory committee member Sin Chung-kai, who is also the Democratic Party's economic affairs spokesman, welcomed the cut but urged the Government to disclose more information. 'It is important for the Government to disclose whether there are housing and other benefits for senior MPFA officials,' he said. 'If a reduction in the net amount of the salary is to be replaced by housing allowances and other benefits, it would also be unacceptable.' Another committee member and legislator for the insurance constituency, Bernard Charnwut Chan, said the proposed salary should be adjusted as a result of the slow economy. 'The Government should compare all MPFA salaries with those of other public organisations in Hong Kong,' he said. The MPFA is the regulator of the proposed MPF scheme, which is to be launched next year and will cover 300,000 companies with 2.2 million employees. Scheme providers would need to pay an annual licence fee of about $82,000, the panel was told.