The Law “Provident Fund individual accounts” will enter into force tomorrow (15 October).  This Law aims to process the public funds allocated to the residents of the SAR Government, in order to strengthen and enhance the social security and life quality of the residents, particularly the elderly, and also lay a foundation for the future establishment of the Central Provident Fund System.  Under the new law, the existing individual account of the Central Savings System is transformed into the individual account of Provident Fund, while more situations are added to be considered as staying in Macao SAR for at least 183 days.  The Law has also relaxed the application requirements of the early withdrawal of individual accounts and it also stipulates that the balance in the Provident Fund individual account is unseizable and non-transferable, therefore fully protecting the interests of the account owners.

The Law No. 14/2012 automatically produces the following effects:

1. The individual account of the Central Savings System is transformed into the individual account of Provident Fund;
2. The participant of the Central Savings System individual account becomes the owner of the Provident Fund individual account;
3. For all legal purposes, the balance in the individual account of the Central Savings System is transferred to the relevant account of the Provident Fund individual account owner.

In order to enable the future established Central Provident Fund System effectively cover all the working people in Macao SAR, the new law provides that, any Macao SAR resident who reaches 18 years of age, or who is under 18 years of age, but who has been enrolled in the obligatory system of the Social Security Fund (FSS), will automatically become the owner of the Provident Fund individual account.  The FSS will open a relevant account for him/her, but the payment conditions of the special allocation from budget surplus remain unchanged, i.e. must be a permanent resident of Macao SAR who reaches 22 years of age, and at the same time fulfil the relevant requirement of being in Macao SAR for at least 183 days.  The new law adds a new reason for being outside Macao SAR and yet can still be considered as staying in Macao SAR, i.e. if he/she performs official duties, performs duties for Macao SAR or discharges other official duties.

Moreover, the new law has also relaxed the application requirements of the early withdrawal of individual accounts.  It added that in case the account owner is under 65 years of age, when there is a need to meet huge medical expenditure due to serious injury or illness of his/her spouse, any degree of lineal consanguinity or affinity, or he/she is receiving special disability subsidy, the account owner can also apply for early withdrawal.

In order to protect the interests of the Provident Fund individual account owners, the Law stipulates that the balance in the Provident Fund individual account is unseizable and non-transferable.

The legal booklets (Chinese version) are available for free at the FSS head office, China Civil Plaza Office in NAPE and Areia Preta Service Centre of Macao SAR (Area of Social Security and Employment), or can be downloaded from the FSS website at www.fss.gov.mo.  If necessary, please call 2852 3333 for enquiries.