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Mandatory provident fund transfer to annuity

2021-10-14T05:03:06.644Z


The Secretary for Labour and Welfare, Law Chi-kwong, earlier proposed to study the compulsory conversion of MPF into an annuity. Today (14th) he called it "A Arabian Nights", "The most important thing in Hong Kong is choice... You won’t get one.


The Secretary for Labour and Welfare, Law Chi-kwong, earlier proposed to study the compulsory conversion of MPF into an annuity.

Today (14th), he called it "Arabian Nights", "The most important thing in Hong Kong is choice... If you have a choice, it is mandatory", but the government needs to study what is not feasible. place.

He also said that the annuity rate of return is 5%, which is unique in the private market. He buys an annuity as an investment portfolio, and teaches the elderly to put part of their assets into the annuity. A lot of returns."


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Luo Zhiguang stated on the TV program "Millenniums" on Radio Hong Kong this morning that it is impossible to compulsorily convert the MPF to an annuity for employees.

"The most important thing in Hong Kong is choice. The design is good. If you don’t have a choice, you won’t be able to... "Luo Chi Kwong, Secretary for Labour and Welfare

However, he believes that the policy must be explored, "Every choice must be considered, and even if I think it is impossible today, I have to listen to people, and do little research to explore the possibility of something that is better than people listen. This is our open attitude in formulating policies or starting to discuss issues."

Regarding the target audience of annuities, he divides two types of people. One is investors who buy stocks. "I will definitely buy public annuities as part of the investment portfolio. Confirming my monthly income until I get old for a hundred years becomes an important part of my life. "The annual return rate of annuity is 5% to ensure income."

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The other is the elderly who have very little MPF funds. He shared that there are currently 3,000 elderly people who buy annuities and receive the elderly living allowance at the same time. The current asset limit for single people to apply for ordinary elderly living allowance is 365,000 yuan. If the elderly have 50 Ten thousand assets, "The simple way is to put 150,000 into the public annuity, which may bring back 800 yuan a month, and then add the Changshengjin to the annuity, add the ordinary elderly living allowance, and the standard of living will be much better."

As for the cancellation of MPF hedging, Luo Zhiguang believes that the labor sector welcomes the government's proposal, and the degree of support from the management depends on the level of understanding of the plan.

He said that only people who misunderstand the government plan will think that the plan provides incentives for speculation. Assuming that the law takes effect on January 1, 2025, the accrued benefits of employees before the effective date can continue to be hedged, and the rights and interests after the effective date cannot be hedged. "If the employee's rights and interests have already had 200,000 yuan before, you can hedge against both the severance payment and the long service payment, which means that after the effective date, the employer's speculation on the channel will be more than 190,000 at most... .. You fry it and ask the second person to change a new contract, and the upper limit (cannot be hedged) is changed to 390,000."

"There won't be any counts...If he counts the wrong counts, it will be counted separately" Luo Zhiguang, Secretary of the Bureau of Labor and Welfare

Luo Zhiguang said that the employer hopes to cancel the hedging plan and speculate "there will be no gains... if he counts the wrong number, it will be counted separately."

(Information Picture/Photographed by Liang Pengwei)

Luo Zhiguang: Employers’ dismissal of employees before the cancellation of MPF hedging will not benefit the public worry. Luo Zhiguang: The cancellation of the MPF hedging will not benefit the employers before the speculation. Policy address | Luo Zhiguang: The cancellation of the MPF hedging arrangement Have time to save money in a special account

01News

Source: hk1

All news articles on 2021-10-14

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