78 employers join non-mandatory pension scheme

So far, a total of 78 employers have joined the non-mandatory central provident fund system which was implemented on January 1. Yesterday, the Social Security Fund (FSS) held a ceremony to commend employers participating in the scheme. At the ceremony, 31 representatives from six gambling enterprises, public utility companies, social services and other large enterprises publicly expressed their support and intention to participate in the non-mandatory central provident fund system.

During the event, the Secretary for Social Affairs and Culture, Alexis Tam, said that the non-mandatory central provident fund system had been in effect for about half a year and that the participation situation was “encouraging.”  Among the employers joining the scheme, about 90 percent already have a private pension plan and about 10 percent are setting up a central provident fund system for the first time.  A number of gambling enterprises and public utility companies with a large number of employees are also actively promoting and preparing to join the system, Tam revealed. 

According to a statement issued by the FSS, “since the non-mandatory central provident fund is a cumulative retirement protection system, the sooner an employer joins the system, the more favorable it is to accumulate retirement protection for their employees.” Tam called on employers who have not yet joined the non-mandatory central provident fund system to join the system as soon as possible.

In the sharing session, representatives of organizations that have already joined the system said that employees are important assets of a business, and that it is the employer’s responsibility to provide them with solid retirement protection. 

As for the individual provident fund scheme, the FSS has so far received more than 23,800 applications. According to the FSS, this reflects “the concern and emphasis of residents on strengthening their own old-age security.”   

In order to strengthen society’s understanding of the system, the FSS has held more than 100 explanatory sessions so far.