FSS pays an official visit to the Association of Banks and introduces the Non-Mandatory Central Provident Fund System
The Social Security Fund (abbreviated to FSS in Macao) recently paid an official visit to the Macau Association of Banks (the Association) and introduced to its representatives the Non-Mandatory Central Provident Fund System (the System) that will be implemented on 1 January next year. Though this meeting, the FSS expects to deepen the understanding of the Association about the new law. The Association expressed its willingness to cooperate actively with the FSS in order to promote the System to the bank employees.
President of the Administrative Committee of the FSS, Iong Kong Io and others met with the leadership of the Association on August 8th.Both sides had in-depth exchanges on the contents of the non-mandatory central provident fund system. In view of the fact that the banking sector has generally set up a private pension plan for its employees, the meeting mainly discussed the interface between the private pension fund and the non-mandatory central provident fund system, the level of fees of the pension funds within the central provident fund system and the attractiveness of the new system to the employees. The FSS said that in the future, the non-mandatory central provident fund system will provide detailed pension fund information to the account owners through the central information platform. By then, employers and employees will be able to compare the level of fees of various funds through the platform and pick a suitable investment instrument among them. The FSS also said that in line with the needs of the Association, an explanatory session about the System will be held for the bank employees to deepen their understanding about the non-mandatory central provident fund system.
Law No. 7/2017 (Non-Mandatory Central Provident Fund System) that will come into force on 1 January 2018 aims to strengthen the social and old age security for the residents of the Macao SAR and to complement the existing social security system. The FSS is actively lobbying employers in different industries to participate in the system and plans to hold a number of explanatory sessions to introduce to the public the non-mandatory central provident fund system. If members of the public want to learn more about the contents of the law, please visit the thematic web page of the non-mandatory central provident fund system at www.fss.gov.mo/en/sites/cpf.