Macau (MNA) – Pension Fund (FP) recorded a cumulative deficit of MOP1.14 billion (US$141 billion) from 2015 to 2018, while the fund also had a cumulative return on assets of MOP1.54 billion during this period which had not been recorded, the Pension Fund told a Legislator Assembly (AL) committee today.
The Follow-up Committee on Public Finance held a meeting with the Pension Fund for monitoring its financial situation, investments and future capacity in paying pensions.
Last year, the fund received contributions of MOP1.4 billion and granted MOP1.9 billion, that MOP517 million expenses exceeded revenue, the President of the Committee, Mak Soi Kun, told journalists after the meeting.
Mak said that the deficit reflected that contributors would become less and less while the expenditure of pension would keep increasing in the future.
But he ensured that “public servants are able to get pensions” because of investments of the fund and possible injection from the Macau SAR government.
According to the Fund report submitted to the Committee, the Financial Services Bureau (DSF) is putting MOP101 million of subsidy to the fund every year, however, the government has not granted capital injection to fund.
“It is because the charter of the fund does not have the guidelines about the injection,” the President explained.
The fund will announce a new actuarial report of the cash flow of the fund for the next 10 to 20 years in June or July.
The government is believed to consider the possibility of time and amount of injection to the fund in the future according to the new actuarial report.
According to the actuarial report in 2014, the fund was estimated to run out of money by 2031 if the government did not inject capital to the fund.
It was also disclosed that as of last year the Macau Jockey Club owed MOP113 million loaned by the fund since 2005, which were said to be paid until 2021 with “no interest”, something the legislator considered strange and not yet explained by authorities.
Legislator Mak also stated that Fund held a meeting with the Gaming Inspection and Coordination Bureau (DICJ) and the Macau Jockey Club in 2005 where the loans were allowed, but with no explanation provided today on the reason for the loans.
MJC was granted a concession extension of 24 years and six months based on the conditions that the club fulfills its MOP4.5 billion investment plan.
