The compilation of the “Research report on Social Security System” has been completed. Starting from 3 September, members of the public can read or download the report summary from the Social Security Fund (FSS) website at www.fss.gov.mo. According to the report, changes in the amounts of old-age pension and disability pension would constitute a direct impact on the financial position of the FSS, therefore the government at the time of study a raise of the pension amounts should first consider the source of funds, i.e., the contributions of FSS beneficiaries and the amounts of appropriation from the government and its sustainability.

Last year, the FSS hired a consulting firm to compile the “Research report on Social Security System” in order to predict the FSS financial position in the next 30, 40 and 50 years. It also takes account of the existing data and perform the projections of 23 simulated situations based on different assumptions and parameters, so as to evaluate every possible financial influence that different situation may have on the FSS.

An annual growth rate of Macao’s population of 1.2% is projected in this research report. The trend of the ageing population in Macao is rapid. The proportion of the elderly aged 65 years or above at 8% in 2012 will significantly rise to 30% in 2062, while the proportion of the population between 15 and 64 years old, which mainly compose of the working population, at 80% in 2012 will obviously fall to 60% in 2062. The ageing of population is reflected in the increasing burden of the working population to support the living expenses of the retirees. According to the report, the amount of monthly contributions at 45 patacas paid by the beneficiaries nowadays is not enough to cover the expenses of social security benefits, and the Social Security System can hardly be sustained if not rely on huge support from government appropriation.

The FSS said that in order to establish a sound operation mode that can develop sustainably, the sources of income of the Social Security System should gradually be converted from a balanced condition which is collaboratively supported by contributions from both employers, employees (or individuals) and the government appropriation to one that raises the proportion of the beneficiaries’ contributions to a more reasonable level of the benefits expenditure and adjust the proportion of contributions between the employers and employees, so as to ensure a long-term steady and healthy development of the financial position of the Social Security System. Furthermore, to widen the space that the amount of pensions can be raised timely in response to the needs of the community, so that the purpose of the Social Security System can be implemented to provide residents with basic old-age security.

For enquiries or suggestions about the contents of the report summary, members of the public can call 2853 2850 during office hours or visit the FSS website.