A government actural report predicts that the existing Social Security Fund will be used up by 2036, if the form of funding remains unchanged.
The report was first revealed by the Government during the discussion of the new Social Security Fund Regime Bill at the Third Standing Committee of the Legislative Assembly, upon the legislators’ request.
Based on the prediction of a 2% annual increase from government funding, which stood at MOP1.3 billion in 2009, the assets of the Social Security Fund will be used up by 2036, as payments will also increase at the same time.
The report suggested that the government should provide an extra MOP135 million to the Fund, or participants should contribute an extra MOP33 per month, to ensure the assets will be used up by at least 2039.
However, the report also stressed that even the assets will be used up at a definite time frame regardless of the amount of extra funding, it is then necessary to increase both the government and participant contributions.
Meanwhile, government representatives stressed that the new Social Security Fund regime will not affect participants to the existing regime, who will entitle them to receive payments, pro rata by the age of 60 and in full by the age of 65, as long as they have contributed to the fund for five years.
Government representatives also guaranteed during the meeting that the new regime aims to benefit the entire the population of Macau.
