Hong Kong employers accused of restricting pension options

Hong Kong employers who are concerned about extra payment liabilities are only offering their employees low risk funds.

Some Hong Kong employers are choosing pension investment plans that include only low risk funds because of the fear that losses made by higher risk funds could increase their fund contribution obligation under the law, according to Lee Cheuk-yan, legislator and general secretary of the Hong Kong Confederation of Trade Unions.

Lee tells FinanceAsia his electoral office has been receiving complaints about employers exploiting the loophole by signing up with pension providers who offer investment plans that include only low risk funds, effectively leaving their employees no options but to invest in those funds.

From 1 December, both employers and employees will have to contribute 5% of...

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