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Social Security System

FSS Visits Junior Chamber International to Promote Two-Tier Social Security System


2019-04-11

In order to enhance communication and exchange with young people, the President of the Administrative Committee of the Social Security Fund (abbreviated to FSS in Macao), Iong Kong Io, recently visited the Junior Chamber International Macao, China (JCI) to introduce the two-tier social security system to them, and hear the suggestions and opinions of the young people at the meeting about the work of the FSS. 

On 9 April, President Iong Kong Io, led the department heads to visit the Junior Chamber International Macao, China (JCI), and was warmly welcomed by them.  With the theme “Two-Tier Social Security System is with You Every Step of the Way”, Iong shared with the participants the background of construction of the two-tier social security system in Macao, the concept of the policy and its latest developments.  He mentioned that with the development of society, Macao faces the same problem of population aging as many countries and regions in the world.  It is estimated that after two years, there would be one elder among every seven people in Macao.  In order to provide protection for the retirement of residents, individuals and the government have the responsibility to prepare for this.  To this end, the SAR Government has introduced a two-tier social security system - the first tier, Social Security System, allows all residents to enjoy basic social security, especially old-age security while the more comfortable retirement protection is provided by the second tier, Non-Mandatory Central Provident Fund System.  Iong encourages participants to grasp the advantages of being young, develop good financial management habits early and plan for their retirement.  Young employers are also encouraged to take a step forward in preparing for the retirement of employees by participating in the Non-Mandatory Central Provident Fund System. 

Ip Chio Fai, President of Junior Chamber International Macao, China, said that there was a big gap between the contribution income and the payment expenditure of the first tier, Social Security System.  The government needs to make large subsidies for this purpose, and he feared that it would affect the sustainability of the System.  Iong said that during the period from 2013 to 2016, the SAR Government injected an additional 37 billion patacas into the FSS, and from 2013 onwards, the proportion of gaming revenue appropriated to the FSS was increased from 60% to 75%.  Then in 2017, the FSS also contributed to the increase in the amount of social security contributions from 45 to 90 patacas per month.  These measures have all contributed to stabilizing the financial position of the  FSS.  According to the results of the latest actuarial study, the FSS can maintain its positive asset value for the next 50 years.  Another participant asked how the interface between a private pension plan and the Non-Mandatory Central Provident Fund System affects employees.  Ieong Iun Lai, Head of Department of Central Provident Fund System, replied that the law requires the fund management entity to provide at least four arrangements per year, for the switching of pension funds, and the conditions are superior to those of the average private pension fund.  In addition, when calculating the vesting percentages, the contribution time under the employee’s private pension plan and the Central Provident Fund System will be cumulatively calculated, and after participating in the Central Provident Fund, the employers’ contributions cannot be used to offset the compensation for unreasonable dismissal, which can prevent employees’ retirement savings from being eroded and further protect employees’ rights and interests.

There were about 30 members from the Junior Chamber International Macao, China (JCI) attending the event, which included President Ip Chio Fai, President of Pan Mac Junior Chamber, Wong Kuai Hou, President of Hou Kong Junior Chamber, Chan Sut Lai, President of Macau Junior Chamber of Commerce Senior Member Association, Shotaro Watanabe, and representatives of the FSS included President of the Administrative Committee, Iong Kong Io, Vice-President Chan Pou Wan, Head of Department of Central Provident Fund System, Ieong Iun Lai, Head of Department of Social Security System, Chan Pou I, and Acting Head of Division of Public Relations and Technical Support, Lao Kin Ieng.

  • Iong Kong Io, President of the Administrative Committee of the FSS, visits the Junior Chamber International Macao, China
  • Iong Kong Io presents the mascots of the FSS to President Ip Chio Fai