The Provident Fund for Workers in Public Services (FP) has recorded a deficit for the fourth consecutive year.
However, lawmaker Mak Soi Kun, who is also president of the Follow-up Committee for Public Finance Affairs of the Legislative Assembly (AL), assures civil servants that when they retire they “will surely get their money [pension].”
According to Mak, due to changes to the structure of the provident scheme and the fact that a large population of civil servants using the old scheme is due to retire, the deficit is a “natural phenomenon.”
When the first deficit was recorded in 2015, the amount was approximately MOP8 million. In the latest accounts, the deficit is now MOP570 million. The total deficit from the previous four years is nearly MOP1.2 billion in total.
The Financial Services Bureau is subsidizing the fund with MOP101 million annually. An actuarial report will be issued this summer to clarify plans on investment and government subsidies.
The fund was initially set up to protect life after retirement for civil servants and their survivors. The management body of the fund manages, investigates and advises on related matters. Staff reporter
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