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LCQ10: Cross-boundary portability arrangements for welfare benefits
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     Following is a question by the Hon Leung Che-cheung and a written reply by the Secretary for Labour and Welfare, Dr Law Chi-kwong, in the Legislative Council today (May 2):
 
Question:
 
     Some members of the public have relayed that the current cross-boundary portability arrangements for welfare benefits have a very narrow scope, as only those elderly people who are receiving the Comprehensive Social Security Assistance (CSSA) payments or the Old Age Allowance (OAA) may continue to enjoy such benefits after they have moved to reside in Guangdong and Fujian Provinces in the Mainland.  On the other hand, the then Chief Executive indicated in the 2011 Policy Address that "we need to conduct a comprehensive study on the portability of various welfare benefits, including services provided by residential care homes for the elderly, hospitals and clinics.  We will consider whether such services should be extended for our elderly people residing in the Mainland from the perspectives of law, policy and public finance."  In this connection, will the Government inform this Council:

(1) of the latest progress of the aforesaid study on the portability of welfare benefits, and when the outcome of the study will be published;
 
(2) whether it will consider expanding the territorial scope of the portability arrangements for CSSA and OAA to cover other provinces of the Mainland and overseas places; if not, of the reasons for that;
 
(3) whether it will consider introducing a portability arrangement applicable to the Disability Allowance; if not, of the reasons for that; and
 
(4) as a research report has pointed out that the citizens of Canada and member states of the European Union may still enjoy certain benefits even if they live abroad, whether the Government will draw reference from such practices and consider comprehensively deleting the permissible limit of absence from Hong Kong from the eligibility criteria for the various welfare initiatives?

Reply:
 
President,
 
     My reply to the Member's question is as follows:

(1) The Government appreciates that some Hong Kong elderly persons, especially those who came to Hong Kong from the Mainland at a younger age, may choose to reside on the Mainland after retirement.  The Government respects their wish and provides assistance for them through various measures. 

     On social security, the Social Welfare Department (SWD) implements various portable welfare measures to provide cash allowance to elderly persons who choose to reside on the Mainland.  The Portable Comprehensive Social Security Assistance (CSSA) Scheme under the CSSA Scheme allows eligible Hong Kong elderly persons who have received CSSA continuously for at least one year and choose to retire in Guangdong or Fujian to continue to receive the monthly standard rates and annual long-term supplement.  As at the end of March 2018, 1 329 elderly persons (1 205 residing in Guangdong and 124 residing in Fujian) benefitted from the Scheme, representing around 1 per cent of all CSSA elderly recipients.  In 2018-19, the estimated recurrent expenditure for the Portable CSSA Scheme (excluding two-month additional allowance) is about HK$68 million.
 
     SWD introduced the Guangdong Scheme under the Social Security Allowance (SSA) Scheme in 2013 to enable eligible Hong Kong elderly persons who choose to reside in Guangdong to receive the Old Age Allowance (OAA; currently at HK$1,345 per month) without having to return to Hong Kong every year. As at the end of March 2018, about 17 000 elderly persons benefitted from the Guangdong Scheme.  With reference to the arrangements of the Guangdong Scheme, SWD introduced the Fujian Scheme on April 1, 2018 to enable eligible Hong Kong elderly persons who choose to reside in Fujian to receive monthly OAA.  In 2018-19, the estimated recurrent expenditures for the Guangdong Scheme and the Fujian Scheme (excluding two-month additional allowance) are about HK$300 million and HK$95 million respectively.
 
     On the provision of services, SWD has implemented the Pilot Residential Care Services Scheme in Guangdong (the Pilot Scheme) since June 2014.  Under the Pilot Scheme, the Government purchases places from two residential care homes for the elderly (RCHEs) located in Yantian, Shenzhen and Zhaoqing and operated by Hong Kong non-governmental organisations (Note).  The Pilot Scheme enables elderly persons waiting for subsidised care-and-attention places in Hong Kong to choose to reside in the two participating RCHEs.  Elderly persons are offered full subsidy on the home accommodation fees.  The Government also requires the two participating RCHEs to provide medical support services.  In January 2017, the Government announced the extension of the Pilot Scheme for three years.  As at the end of March 2018, a total of 180 elderly persons participated in the Pilot Scheme.

(2) The Portable CSSA Scheme, the Guangdong Scheme and the Fujian Scheme only cover eligible elderly persons residing in Guangdong and Fujian mainly because there are more Hong Kong people residing in these two provinces.  In terms of geographical proximity and community bonding, elderly persons residing in Guangdong and Fujian could maintain a close connection with their relatives and friends in Hong Kong and obtain more readily support.  Moreover, the two provinces are uniquely and closely connected with Hong Kong on the social, economic and transport fronts.

(3) The Disability Allowance (DA) under the SSA Scheme is provided for Hong Kong residents with severe disabilities to meet special needs arising from their severe disabling conditions.  An applicant must be assessed to be severely disabled, as a result require substantial help from others to cope with daily life, and his/her severe disabling condition will persist for at least six months.  In general, medical assessment for DA must be conducted by doctors of the Department of Health or the Hospital Authority.  Currently, most DA recipients are subject to regular medical assessments.  Due to differences in professional training and clinical protocols, it is difficult to ensure the standard and quality of medical assessments conducted by doctors outside Hong Kong.  There is therefore no arrangement for DA recipients to receive medical assessments outside Hong Kong, and it is unlikely that such a mechanism will be established in near future.  The Government has no plan to extend DA's portability to cover places outside Hong Kong at this juncture.

(4) The current social security system (including the CSSA Scheme and the SSA Scheme) is non-contributory and wholly funded by the Government's general revenue, which involves substantial public funds.  In view of an ageing population, the Government has to ensure prudent use of public funds.  The residence requirement during receipt of allowance aims to ensure that social security payment is only provided for people who have a long-term connection with Hong Kong.  

     Having regard to some social security recipients' needs for temporary absence from Hong Kong (e.g. seeking medical treatment or visiting families), permissible absence limits are put in place under the CSSA Scheme and the SSA Scheme.  The permissible absence limit for CSSA recipients is 60 days per year, whereas that for elderly and disabled CSSA recipients is 180 days per year.  The permissible absence limit for persons receiving subsidies under the SSA Scheme is 305 days per year, i.e. recipients may receive full-year allowance as long as they have resided in Hong Kong for not less than 60 days per year.  The permissible absence limits are also applicable to recipients under the Portable CSSA Scheme, the Guangdong Scheme and the Fujian Scheme, so as to take care of their needs for temporary absence from Guangdong or Fujian.
 
     The permissible absence limits mentioned above have struck a balance between effective allocation of public resources and the needs of elderly persons.  The Government has no plan to change the relevant arrangements at this moment.

Note: Namely the Hong Kong Jockey Club Shenzhen Society for Rehabilitation Yee Hong Heights and the Hong Kong Jockey Club Helping Hand Zhaoqing Home for the Elderly.
 
Ends/Wednesday, May 2, 2018
Issued at HKT 16:50
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