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Firstly, the Government will not introduce a universal pension system, but instead add another tier and higher payout to the Old Age Living Allowance. The asset limit for the allowance will also be raised. Secondly, the age of eligibility for the elderly’s Comprehensive Social Security Assistance scheme will be raised from 60 to 65 to align with policy efforts to extend the retirement age. Finally, the Government is to progressively abolish offsetting of SP (Severance Payments) or LSP (Long Service Payments) with MPF contributions with three key elements; (1) no retrospective effect (2) adjust SP/LSP payable for post-implementation employment period from “2/3 of wages” to “1/2 of wages” and (3) Government subsidy in the 10 years after implementation. The Government is consulting stakeholders, including MPF trustees and target to take the proposals to the Executive Council by end-Jun 2017. For details, visit the Government website:  http://www.budget.gov.hk/2017/eng/budget07.html

Isabella Ho

Isabella Ho has blogged 40 posts