Saving the Old Age Allowance Scheme from Populism 12/10/2012

【明報專訊】LIKE the Mandatory Provident Fund (MPF) system, the

enhanced Old Age Allowance scheme has been introduced for the sake
of the retired population. The MPF system, however, was ill-conceived
at the time of introduction, and an Employee Choice Arrangement, to
commence on November 1, is designed to address one of its problems.
Launched 11 years ago, the MPF system has attracted public anger
and hostility, as was evident last year, when a public outcry followed a
government proposal in the Budget to inject $6,000 into each and
every MPF account. The proposal, it was said, would only serve to
benefit the MPF trustees. For the fact is that, with their poor returns
and high management fees, MPF funds not only fail to provide for
retirement, but eat into employees' hard-earned money. The MPF
system has become a goose that lays golden eggs for the trustees and
fund managers.
It remains to be seen if employees' interests could be better protected
with the introduction of the Employee Choice Arrangement, but one
thing is clear: an ill-conceived policy can have far-reaching effects, for
which both the government and society may have to pay heavily.
Seen in this light, we cannot but consider the at present much-
discussed enhanced Old Age Allowance scheme with a sense of
misgiving.
The issue in fact arose during the Chief Executive race this year. Not
to be outdone by Henry Tang Ying-yen, who proposed in his election
platform a $3,000 retirement allowance a month for all qualified senior
citizens, Leung Chun-ying stated as part of his election platform that "a
special old age allowance scheme will be introduced over and above
the present one, and needy senior citizens will be entitled to an
allowance about double the present amount after passing a simple
means test". The enhanced Old Age Allowance scheme now introduced
by the government is to fulfil Leung's election promise.
If the $2,200 Old Age Allowance scheme smacks of populism, it
becomes even more so when passed on to politicians and political
parties. Recently, many of them have, in the name of serving the
people, demanded more and more from the government. Some insist
that there should be no means test for those aged 70 or above, and
some declare that the income and asset limits should be raised. Many
have even threatened that, unless their demands are complied with,
they will vote down the government's application for funding of the
scheme. Clearly, the enhanced Old Age Allowance issue is getting
more and more steeped in populism. Will the scheme end up as badly
devised as the MPF system and play havoc with the coming
generations? The government is now put to a severe test.
Political parties and politicians are talking glibly about a universal
pension scheme, but they never tell us where the money to finance the
scheme is to come from. As everyone knows, a universal pension
means an increase in taxes and a drastic revision of Hong Kong's low
and simple taxation regime. It is pointless talking about such a pension
when there is no public consensus on tax increases.
On the enhanced Old Age Allowance issue, the government must stick
to the principle of helping only the needy and insist on a means test.
No concessions should be made even if the funding approval is voted
down. The MPF system is bad enough. Hong Kong cannot afford an
equally bad enhanced Old Age Allowance scheme.
明報社評 2012.10.11﹕強積金已經一團糟 長者津貼勿重蹈覆轍
強積金和長者生活津貼都關乎長者退休後的生活，下月 1 日實施的強積金半自
由行，是用以糾正強積金制度設計之弊，這是當年缺乏深思熟慮的結果。
強積金實施至今已經 11 年，市民對強積金的憤恨，從去年財政預算案，政府
給每個強積金戶口注資 6000 元，而引發的群情洶湧可見一斑，市民認為政府
注資是「明益」強積金受託人。因為強積金回報率已經不高，管理費卻高昂，蠶
食打工仔的血汗錢，未能保障打工仔退休生活，卻成為供養受託人與基金經理
的會生金蛋的鵝。
強積金半自由行，能否使打工仔少受剝削，尚待觀察。事態說明一個不妥當的
政策，影響極其深遠，市民、政府和社會都要付出代價。
回顧強積金的一些情况，檢視社會上熱議的長者生活津貼，使人忐忑不安。
首先，議題源於今年特首選舉期間，參選人唐英年在競選政綱提出給合資格
長者發放每月 3000 元退休津貼，梁振英不甘後人，競選政綱提出在「現行生
果金計劃基礎上增設特惠生果金，有需要長者經簡單入息及資產申報後，每月
可獲約雙倍津貼」，梁振英當選特首，現在政府提出的長者生活津貼，就是要
履行梁振英的競選承諾。
政府的 2200 元津貼計劃，本已不乏民粹色彩，去到政黨政客手中，更加不得
了。連日來，多個政黨政客都擺出為民請命的架式，層層加碼，有直接要求
70 歲以上長者免資產申報，也有要求提高資產上限。不少政黨政客「要脅」政
府，若不就範就否決撥款云云。所以，情况顯示長者生活津貼計劃，在民粹之
路愈滑愈深，最終會否出現類如強積金的錯誤政策，禍及下一代，對政府是極
大考驗。
一些政黨政客口口聲聲說全民退休保障，但是他們從來不說錢從何來。衆所周
知，實行全民退休保障，必然要加稅，大改香港的簡單稅制和低稅率。在社會
對加稅無共識情况下講全民退休保障，看不到有任何意義。
關於長者生活津貼，政府要恪守協助有需要人士的原則，必須堅持資產申報機
制，即使政府不夠票通過撥款，也絕對不能退讓。強積金已是慘痛教訓，長者
生活津貼切勿重蹈覆轍。
Glossary
outcry ﹕ a reaction of anger or strong protest shown by people in public
be/ get steeped in ﹕ to have a lot of a particular quality
havoc ﹕ a situation in which there is a lot of damage, destruction or
confusion
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