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Letters

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MPF scheme should be replaced with something that works

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I agree with Jake Van der Kamp's column regarding the Mandatory Provident Fund ('Failed MPF scheme should be wound up', September 12).

However, it should be replaced by something which works - for the reason that our retirees will need income in the same way that social security payments underpin most US retirees' income.

Our present MPF process - which for the sake of brevity I will describe as throwing our retirees to the wolves - guarantees a poor outcome.

An excellent process - for example the Swedish scheme offering a genuine choice of low- priced investment products - provides not only a better investment pay-off but also the invaluable political benefit that the government is seen to care about the future of society.

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I cannot believe that our government is incapable of understanding the technical deficiencies and political dangers inherent in our Mandatory Provident Fund, and I urge our officials to re-engineer this scheme so that it ranks among our better institutions, not our worst.

Don Allison, Kowloon Tong

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