A REPORT on the feasibility of a central provident fund (CPF) for Hong Kong is expected to be given to the government by the end of next month, according to the Secretary for Financial Service, Michael Cartland.
He said although the Government had never floated the CPF as an option it was nevertheless one of the options being examined for a decentralised compulsory pension scheme.
In an interview with the Sunday Morning Post yesterday Mr Cartland said: ''the question of a CPF is very complex and is something not many people fully understand.
''It is naive for people to think that a CPF can operate effectively with contributions as low as five per cent from both the employer and employee.
''If employees want something that pays out say 60 per cent of their salaries in benefits they should expect to lose 20 per cent of their salaries to pay for it.
''And one wonders whether Hong Kong, which enjoys a low tax environment really wants such a set-up.'' Mr Cartland was speaking a day after occupational retirement schemes ordinance came into effect.
