To deepen the awareness of young employers on the non-mandatory central provident fund system and to encourage them to participate in the system, the President of the Administrative Committee of the Social Security Fund (abbreviated to FSS in Macao), Iong Kong Io, recently visited the Youth Committee of Macao Chamber of Commerce, and introduced the contents and latest situation of the non-mandatory central provident fund system to members of the Youth Committee, on the theme of “Participating in Central Provident Fund System for Greater Peace of Mind in Your Retirement”.

In his speech, Iong said that being young is an advantage.  Provided the investment time is sufficient, even if the capital is small and the rate of return is low, it is easier to achieve ideal savings goals.  Therefore, the earlier you start accumulating retirement reserves, the better.  In the non-mandatory central provident fund system, the participation of employers and employees is determined by employers, so the role played by employers is particularly important.  The FSS hopes that the exchange visit will enhance the awareness of young employers at the meeting on the non-mandatory central provident fund system, and encourage them to take a step forward for the retirement life of their employees. 

During the exchange session, the issues that were more concerned by the participants were mainly the interface between the private pension plan and the non-mandatory central provident fund system, the incentives for employers to participate in the non-mandatory central provident fund system, and the timetable for mandatory implementation of the central provident fund system, and Iong responded to the questions one by one.  He said that when an employer interfaces the original private pension plan to the non-mandatory central provident fund system, the old employees who have already participated in the private pension plan can choose to interface with the non-mandatory central provident fund plan, or choose to stay in the private pension plan.  Employees who have not joined a private pension plan or the new hires can only choose to participate in the non-mandatory central provident fund system.  To attract employers to participate in the system, the non-mandatory central provident fund contributions paid by employers can be regarded as operating costs, and there may be an extra two times of tax concession in the first three years of the system’s entry into force.  Iong added that as more employers participate in the system in the non-mandatory stage, there will be healthy competition in the labour market.  Under the current situation of tight human resources in Macao, businesses that provide better employee benefits, including the central provident fund, will have an advantage and mutual benefit.  In addition, the FSS has introduced a series of convenience measures to facilitate employers to participate in the system, including streamlining the application process, providing dedicated service counter and helpline, and launching an online open information platform.  The FSS will complete the review report within 180 days after the implementation of the system for three years, and based on the contents of the report, examine the effectiveness of the system and see if there are conditions to fully implement the system in a mandatory manner.

There were about 50 members of the Youth Committee of Macao Chamber of Commerce attending the event, which included its Deputy Directors, U Seng, Ng Man Wai, Ng Hoi Fong, Chui Tin Lop, and Wong Chi Kun, and other standing committee members and members, and the representatives of the FSS included Vice President Chan Pou Wan, Ieong Iun Lai, Head of Department of Central Provident Fund System, Chan Pou I, Head of Department of Social Security System, and Ho Hoi Sang, Head of Division of General Affairs of Provident Fund System, and Kuok Tong Mui, Head of Division of Public Relations and Technical Support.