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Provident fund individual accounts

Index

Law No. 14/2012


CHAPTER I

General provisions

Article 1 Object and purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Article 2 Executive organ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Article 3 Processing of personal data . . . . . . . . . . . . . . . . . . . . . . . . . 4

CHAPTER II


Article 4 Ownership and opening of the account . . . . . . . . . . . . . . . . 4

Article 5 Function of the account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Article 6 Management of the monies . . . . . . . . . . . . . . . . . . . . . . . . . 5

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Article 7 Unseizability and non-transferability . . . . . . . . . . . . . . . . . 6

Article 8 Right to information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Article 9 Withdrawal of the monies . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Article 10 Account cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CHAPTER III

Transfers

Article 11 Incentive basic fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Article 12 Special allocation from budget surplus . . . . . . . . . . . . . . . . . 9

CHAPTER IV

Final and transitional provisions

Article 13 Central Savings System . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Article 14 Burdens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Article 15 Complementary regulations . . . . . . . . . . . . . . . . . . . . . . . . 11

Article 16 Enter into force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

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MACAO SPECIAL ADMINISTRATIVE REGION

Law No. 14/2012


The Legislative Assembly decrees, pursuant to Article 71 1) of the Basic Law of the

Macao Special Administrative Region, that the following shall be enforced as law:

CHAPTER I

General provisions

Article 1

Object and purposes

1. This law sets up provident fund individual accounts.

2. The setting up of the provident fund individual accounts aims to:

1) Process from public funds, the amounts allocated to the residents of the

Macao Special Administrative Region, hereinafter referred to as Macao SAR,

in order to strengthen and enhance the social security and quality of life of the

residents, particularly the old-age;

2) Facilitate the future establishment of a central provident fund system within

the social security system of Macao SAR.

Article 2

Executive organ

The implementation of this law rests with the Social Security Fund, hereinafter

referred to as FSS.

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Article 3

Processing of personal data

In order to handle all the administrative procedures required to implement this

law, the FSS may, under Law No. 8/2005, provide, exchange, confirm and

utilize the personal data of the interested party, through any form, including the

interconnection of data, with other public entities possessing the relevant data.

CHAPTER II


Article 4

Ownership and opening of the account

1. The following Macao SAR residents are owners of the provident fund individual

accounts:

1) Those who reach 18 years of age;

2) Those who are under 18 years of age, but who have enrolled in the social

security system in accordance with subparagraph 1 1) of Article 10 of Law

No. 4/2010.

2. FSS opens an account for each provident fund individual account owner.

Article 5

Function of the account

The provident fund individual account is intended to record the following transfers

or monies:

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1) Incentive basic fund;

2) Special allocation from budget surplus;

3) Other monies that should be transferred to provident fund individual

accounts.

Article 6

Management of the monies

1. The monies registered in the provident fund individual accounts are managed by

the FSS under principles of prudent risk management, with the aim of obtaining

certain return at low risk.

2. The FSS performs all managerial behaviors in relation to the monies registered

in the provident fund individual accounts, in the interest and in the name of all

respective account owners.

3. The monies registered in the provident fund individual accounts can be utilized

in the following financial investments:

1) Deposits in credit institutions located in Macao SAR;

2) Subscription of investment plans, either directly or by contracting management

entities located in or outside Macao SAR.

4. The amounts of transfers registered in the provident fund individual accounts are

guaranteed by Macao SAR, benefiting the account owners any income derived

from the management of the monies.

5. Under the prevailing law, Macao SAR is civilly liable for the loss caused to the

owners of provident fund individual accounts by the fault and unlawful behavior

of its authorities or employees.

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Article 7

Unseizability and non-transferability

The balance in the provident fund individual account is unseizable and non-

transferable, but without prejudice to the provisions of this law about the death of

the account owner and the return of public funds in accordance with law.

Article 8

Right to information

The owner of the provident fund individual account has the right to obtain regularly

information relating to his/her account, particularly the information about the record

of monies and the respective balance in his/her account.

Article 9

Withdrawal of the monies

1. The owner of the provident fund individual account who reaches 65 years of age

may withdraw all or part of the monies registered in his/her account.

2. The owner of the provident fund individual account who is under 65 years

of age, when under any one of the following situations, may apply for early

withdrawal of all or part of the monies registered in his/her account:

1) There is a need to meet huge medical expenditure due to serious injury or

illness for himself/herself, his/her spouse, any degree of lineal consanguinity

or affinity;

2) He/she is receiving disability pension provided for in Law No. 4/2010 for

more than one year; or

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3) He/she is receiving special disability subsidy provided for in Law No. 9/2011.

3. For humanitarian or other duly substantiated reasons, the FSS Administrative

Committee may permit the provident fund individual account owner under 65

years of age for cases other than those referred to in the preceding paragraph, the

early withdrawal of all or part of the monies registered in his/her account.

4. The owner of the provident fund individual account can make withdrawal or

early withdrawal only once in a year; and in the case of early withdrawal, the

reason provided should be documented.

5. The withdrawal of all or part of the monies registered in the provident fund

individual account by its owner shall not affect the record of subsequent

additional monies.

Article 10

Account cancellation

1. The provident fund individual account is cancelled only in the event of the death

of the account owner.

2. In case of the death of the provident fund individual account owner, the final

balance in the account shall be included in his/her inheritance.

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CHAPTER III

Transfers

Article 11

Incentive basic fund

1. The provident fund individual account owner is entitled to an incentive basic

fund if he/she is still alive on 1 January of the money allocation year and if he/

she simultaneously meets the following requirements in the preceding calendar

year:

1) Is a permanent resident of Macao SAR;

2) Reaches 22 years of age;

3) Has remained in Macao SAR for at least 183 days.

2. The incentive basic fund is a single money payment.

3. If the provident fund individual account owner is outside Macao SAR for the

following reasons, the relevant period can be used to count for the minimum stay

requirement provided for in subparagraph 1 3) of this article:

1) He/she is attending higher level courses recognized by the local competent

authority;

2) He/she is hospitalized;

3) He/she resides in the Mainland China and:

(1) reaches 65 years of age;

(2) is under 65 years of age, but on health grounds, and particularly for the

need for non-hospital nursing, palliative therapy, rehabilitative services or

family care;

4) He/she provides work outside Macao SAR for the employer registered in the

FSS;

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5) He/she works outside Macao SAR in order to bear the main living expenses

of his/her spouse, any degree of lineal consanguinity or affinity who resides in

Macao SAR;

6) He/she performs official duties, performs duties for Macao SAR or discharges

other official duties.

4. Besides the cases mentioned in the preceding paragraph, for humanitarian or

other duly substantiated reasons, the Chief Executive, upon hearing opinions of

the FSS Administrative Committee, may permit the provident fund individual

account owner the relevant period that is outside Macao SAR to be counted for

the minimum stay requirement provided for in subparagraph 1 3) of this article.

5. The provident fund individual account owner may petition FSS for the grounds

of being away from Macao SAR justified and the reasons provided must be

documented; in case it is not possible to provide such documents, the provident

fund individual account owner may make a declaration confirmed by two

witnesses.

6. The amount of the incentive basic fund is 10,000 patacas.

Article 12

Special allocation from budget surplus

1. If the budget execution over the past fiscal years allows, the provident fund

individual account owner shall be entitled to a special allocation from budget

surplus when he/she is still alive on 1 January of the calendar year in which

the Executive Order as referred to in paragraph 4 is published and when he/she

simultaneously meets the following requirements in the preceding calendar year:

1) Is a permanent resident of Macao SAR;

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2) Reaches 22 years of age;

3) Has remained in Macao SAR for at least 183 days.

2. Paragraphs 3 to 5 of Article 11 shall apply, mutatis mutandis, to confirm the

time of stay in Macao SAR provided for in subparagraph 3) of the preceding

paragraph.

3. The right to register the monies allocated in the provident fund individual

account under the name of special allocation from budget surplus expires after 3

years, counted from 31 December of the allocation year.

4. The special allocation from budget surplus and its amount are determined by the

Chief Executive, and published as an Executive Order in Macao SAR Gazette,

after hearing opinions of the Financial Services Bureau.

CHAPTER IV

Final and transitional provisions

Article 13

Central Savings System

1. By-Law No. 31/2009, as amended by By-Law No. 20/2011, expires when this

law comes into force.

2. The provision of the preceding paragraph automatically produces the following

effects:

1) The individual account of the Central Savings System is transformed into the

individual account of provident fund;

2) The participant of the Central Savings System individual account becomes the

owner of the provident fund individual account;

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3) For all legal purposes, the balance in the individual account of the Central

Savings System is transferred to the account of the respective provident fund

individual account owner.

3. The startup fund allocated under the Central Savings System is regarded as the

allocation to the provident fund individual account provided for in Article 11.

Article 14

Burdens

The financial burdens arising from the implementation of this law are carried by the

specific appropriation registered under “Transferências Correntes – Particulares”

of Chapter 12 of “Classificação Orgânica” of general consolidated budget on

government expenditure of the financial budget of Macao SAR in the relevant fiscal

year.

Article 15

Complementary regulations

Matters concerning the implementation of this law, especially concerned with the

distribution procedures of the transfers or monies referred to in Article 5, may be

determined by the complementary by-laws.

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Article 16

Enter into force

This law shall enter into force on 15 October 2012.

Approved on 30 August 2012.

The President of the Legislative Assembly, Lau Cheok Va.

Signed on 4 September 2012.

To be published.

The Chief Executive, Chui Sai On.

(The English version of this law is provided for reference only. Please note that

only the Chinese and Portuguese versions published in Macao SAR Gazette are

official and are the sole authority of the law.)

Documents

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