Replies to LegCo questions

LCQ18: Retirement protection for housewives

Following is a question by the Hon Leung Yiu-chung and a written reply by the Secretary for Health, Welfare and Food, Dr York Chow, in the Legislative Council today (March 29):

Question:

Currently, housewives are excluded from the Mandatory Provident Fund (MPF) Scheme. In this connection, will the Government inform this Council whether:

(a) it knows the approaches adopted by overseas countries and regions in providing livelihood protection for housewives at old age; if so, of the details; and

(b) it will include housewives in the MPF Scheme; if so, of the details; if not, the reasons for that?

Reply:

Madam President,

(a) Most countries do not have special retirement protection scheme for housewives. However, there are some measures under the existing schemes which might benefit housewives.

Canada and Sweden adopt pension sharing which allows couples to share their pension credits. In the contributory flat-rate defined-benefit schemes of the United Kingdom and the Netherlands, carers of family or child are not required to contribute to their pensions but the period of care during which the carer is absent from work is being credited to the total number of years of pension contribution.

Only a limited countries, such as the United States of America and Japan, offer spouse benefits that provide pension for the spouse of an insured worker based on the worker's contribution records.

Most earnings-related defined-benefit systems in Europe and North America have mandated survivor benefits allowing widows and widowers to receive their deceased spouse's pension.

A minimum pension has been used by Canada and Australia. The minimum pension is funded out of the general revenues. These benefits are income-tested so that they benefit only those with little retirement protection, similar to the Comprehensive Social Security Assistance Scheme in Hong Kong. Elder aged 65 or above in Hong Kong can also apply for the largely non-means tested Old Age Allowance.

(b) According to information provided by the Financial Services and the Treasury Bureau, the MPF Scheme is an employment-related retirement protection system. Unless specifically exempted by the law, all members of the workforce have to participate in the MPF scheme. Housewives who are not under employment may invest in savings and endowment plans available in the market to meet their future needs.




Ends/Wednesday, March 29, 2006
Issued at HKT 13:24

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