In order to understand the policy and implementation situation on the country’s social security aspect, the Social Security Fund (FSS) previously paid a visit to the Ministry of Human Resources and Social Security of the People's Republic of China (the Ministry), and other relevant departments and agencies in Beijing. It is hoped that through more frequent contacts and exchanges, it will be beneficial for both sides to explore the possibility of convergence and integration of the social security system between Macao and the Mainland.

From 6 May to 9 May, Ip Peng Kin, President of FSS Administrative Committee (the Committee) led a delegation to Beijing to visit the Ministry, Beijing Human Resources and Social Security Bureau, the National Social Security Fund Council and the Office of the National Committee on Ageing. The delegates included Chan Pou Wan, Vice-President of the Committee, Sam Kam San and Lei Chan U, members of the Committee, Ieong Iun Lai, Head of Social Security Department, Chan Pou I, Head of Contribution Division and Leong Wai Ieng, functional head of Central Savings System Group.

On the morning of 7 May, the delegation first paid a visit to the Ministry and met with Xu Yanjun, Deputy Director of the Social Insurance Administration Centre. Representatives of the Ministry described the overview of the social security system in the Mainland. The relevant system is comprised of basic pension insurance, basic medical insurance, unemployment insurance, work-related injury insurance and maternity insurance, in which the pension insurance is sub-divided into the urban basic insurance, new rural pension insurance and pension insurance for urban residents. The Ministry expects to realize the target of full coverage of basic pension insurance in this year. In the face of an ageing population, apart from adhering to the implementation of “basic security, wide coverage, multi-levels, sustainability” of the old-age security system in the future, the Ministry will also strengthen capital reserves and consider postponing the age of retirement. About the convergence of the social security system between the Mainland and Macao, the Ministry opines that both regions can first unify basic principles and set Guangdong Province, a closer collaboration partner of Macao, as a site of demonstration, and then examine the viable schemes according to the situations of different regions. Both parties can then maintain exchanges and discussion on relevant topics in the future.

On the morning of the following day, under the arrangement of the Beijing Human Resources and Social Security Bureau (the Bureau), the delegation visited the frontline service lobby and payment counters of the social security centre in Fengtai District, where a meeting was held to exchange views with Li Shuping, Deputy Director of the Bureau. At the meeting, both sides introduced the implementation of the social security system in the two places. The social insurance in Beijing is comprised of compulsory social insurance, annuities and personal commercial insurance. About compulsory social insurance, employers and employees are required to pay respectively a contribution of 20% and 8%, based on the average monthly salary of the employee in the previous year; for medical insurance, 10% and 2%; unemployment insurance, 1% and 0.5%; maternity insurance at 0.8% is paid by the employer. Self-employed persons pay the pension, medical and unemployment insurance of respectively 20%, 4.9% and 1% of the average salary of the region in the previous year. The current pension amount is RMB2,500, and the replacement rate is about 50%.

In the afternoon of the same day, the delegation also paid a visit to the National Council for Social Security Fund (the Council), and had a meeting with the Council Chairman Dai Xianglong. Established in 2000, the main source of the Council’s funding comes from the central budgetary allocation and funds raised by other means approved by the State Council, as a supplement to the social security expenditure. About the forms of investment, direct investment by the Council and investment by fiduciary administrators are in equal share. Over the past 11 years, the average annual rate of return is 8.41%, which is 6% higher than the inflation rate of the corresponding period. Since late 2006, the Council has been entrusted with the management of the individual account funds of nine pilot provinces and cities, for which it makes a decent return. Starting from this year, the Council was even entrusted to manage the balance funds of the basic pension insurance of some enterprise workers in Guangdong Province. In response to the phenomenon of global ageing, the Council will promote in the future the institutionalized management of fund raising and the rational allocation of assets, in order to realize the preservation and appreciation of the value of the funds.

Later, the delegation paid a visit to the Office of the National Committee on Ageing, where they received a warm reception by Deputy Director Yan Qingchun. During the meeting, both sides exchanged views on the status quo of the social security system and development of service for seniors in the Mainland and Macao.

The FSS said that the purpose of this visit was mainly to strengthen exchanges with the relevant social security departments and agencies of the country. As per “The Interim Measures for Participation in Social Insurances of Foreigners Employed in China” in particular, people from Hong Kong, Macao and Taiwan who work in the Mainland are required to participate in the social insurance. It is also mentioned in "Guangdong-Macao Cooperation Framework Agreement" that the two regions should “establish a mechanism for exchange and cooperation on social security affairs, and conduct studies to solve the issue of convergence on social security for the people who cross border to work and live”. The FSS will actively communicate with the Mainland in the future and will make use of Guangdong Province as a starting point to explore the convergence affairs of the social security system in Macao and the Mainland.