LEGISLATOR Henry Tang Ying-yen is proposing a retirement scheme that combines the features of both a private compulsory retirement scheme and a central provident fund. Mr Tang, a Liberal Party member, suggests making it mandatory for every company to provide a retirement scheme for its employees. At the same time, the Government should set up an insurance agency to provide an alternative to private insurance companies. This would save the Government providing financial guarantees to the private schemes. Nor would it need to make a capital injection. If some companies preferred a low-risk, stable scheme, they could choose the government-owned agency. But its rate of return would probably be several percentage points lower than that of others.