[全民退保] Summary of Universal Retirement System

Universal pension system 

(“regardless of rich or poor” principle or “those with financial needs” principle)

Problem: 

• An ageing population will lead to higher demand for health care and social welfare. Given the existing contribution rates and extent of coverage, the Mandatory Provident Fund scheme alone cannot fully address retirement protection for the elderly. 
• Older persons of all classes lack stable incomes for a care-free retired life (Grassroot can only apply for CSSA, middle class cannot spend their saving at ease, hard to estimate the medical cost and their life expectancy)
• Negative labelling on CSSA recipients
• Old Age Allowance cannot meet basic expenditure
• Family members have difficulties to support elderly

How to finance?

• Government injection
• Transfer MPF contribution
• Profit tax from large corporations

Pros:

• Stable incomes and a sense of security for older persons
• No-labelling effect
• Incomes from work does not affect eligibility; those who can work more get more will sustain for at least 50 years (deal with the peak of aging population)

Discussion: 

• In a rapidly ageing society, fewer workers will have to support a growing number of retirees and the government would have to increase taxes to fund a pension system.
• The Scholar’s Universal Old Age Pension Proposal settle expenditure through 3 parties (Gov: allocate the elderly CSSA,old age allowance and old age living allowance to Universal Old Age Pension, an additional injection of 100 billion; Citizens: transfer 2.5% MPF contribution by each of employer and employee; Large corporations: 1.9% profit tax levied on less than 7% of Hong Kong corporations) -> no extra tax, only 1.9% tax increase for large corporation
• Old persons are supported by young people?
• Young people will benefit from the Universal Old Age Pension when they get old
• Why wealthy people also receive payouts?
• Implement opt-in/ opt-out option?
• The concept is not assistance for poor, but a form of social security. Government shares the risk for every citizens.
• Most daily social services such as medical services and education are non means test 

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