New allowance strengthens social security
October 10, 2012
Secretary for Labour & Welfare Matthew Cheung says the new old age living allowance will strengthen the social security system, as at least 400,000 seniors will benefit - and 290,000 of them certainly will benefit through the auto-conversion process.
Speaking to the media today, Mr Cheung said Hong Kong has three ‘pillars’ in retirement protection. They include the senior’s savings and their families’ support, the mandatory provident fund, and the social security system including Comprehensive Social Security Assistance and Old Age Allowance.
He said the proposed new allowance is a measure to alleviate poverty and is different from comprehensive retirement protection, adding the latter is controversial and requires public discussion.
The Central Policy Unit is studying whether these policies are sustainable, adding it is conducting a survey on seniors’ income and expenses involving 10,000 households. He hopes the results will be available by the end of this year or early next year.
The allowance has far-reaching implications on public money and the Government’s financial situation, Mr Cheung said. Currently, one in eight people is a senior but the ratio will change to almost one in three people in 30 years. As the financial burden will be high, the Government must plan carefully.
He urges lawmakers to put seniors’ welfare and Hong Kong’s long-term interests first. He said he is lobbying legislators, to impress upon them the proposal's merits and the urgency of the Finance Committee's approval.
He hopes the allowance can be approved on October 26 as seniors could start receiving the allowance in November only if it is approved in that month, meaning they will receive less.
He also said the Government aims to strike a balance. Its objectives are to make it easy for eligible seniors to apply and to receive the allowance as quickly as possible, and at the same time be prudent and guard against abuse.
Director of Social Welfare Patrick Nip said there is a declaration of income and assets system and a random-check mechanism. The department will conduct interviews with those selected for random checks, and look into relevant documents. It will also undergo a data-matching process with other departments on properties and other assets.
