A poll taken by the Alliance for the Universal Pension, reveals that most respondents consider the special old age allowance of HK$2,200, unacceptable.The majority of respondents to the survey say the current system should be replaced by a universal pension scheme, immediately.

The study was conducted through random telephone calls. The Centre for Social Policy studies at Hong Kong Polytechnic University called 1,032 Hong Kong citizens above the age of 18, between June 5 and 12. Researchers found that nearly 65 percent of respondents think the HK$2,200 suggested for the new old age allowance is insufficient to support the basic living of elderly people. Over 75 percent of interviewees disagreed that recipients of the special old age allowance should first pass a means test.

Under the old age allowance plan introduced by Chief Executive Leung Chun-ying, qualified senior citizens may, on application, have their current "fruit money" of HK$1,090 increased to HK$2,200.

It is estimated that about 400,000 seniors could benefit from the enhanced old age allowance, if the Legislative Council's Finance Committee approves the HK$6 billion additional expenditure at a special meeting in early October.

"The means test for the applicants of the special old age allowance disregards the contribution that the elderly have made to society, and is disrespectful to the elderly," said Chan Hok-fung, a member of the alliance.

He added the means test could create a rift in society, as well as to create a stigmatizing effect for those who accepted the allowance. Some individuals, he added, oppose means test because they view it as an affront to a person's dignity.

It is proposed that the means test will be aligned with the existing old age aid application for elderly people aged between 65 and 69. The government said those aged over 70 and not eligible for the new subsidy scheme can continue to apply for the current old age allowance without the need to declare income and assets.

The study also found that nearly 90 percent of respondents agree or strongly agree that the government must implement a universal pension system.

Chung Kim-wah, assistant professor from the Department of Applied Social Sciences of the Polytechnic University, said the government's proposed special old age allowance of HK$2,200 wouldn't be enough to cover the ever-increasing cost of living.

Furthermore, he said, "Means test entails heavy administrative costs and is a waste of resources." He went on, there is no need to have a means test for the new old age allowance.

The alliance appealed to the government to establish an ad-hoc department to implement a universal pension and conduct public consultation.

Terry Lum, director of the Sau Po Center on Aging at the University of Hong Kong, told China Daily that he supported a universal pension because senior citizens make contributions to society for most of their lives. But he said there could be a means test for an enhanced old age living allowance, adding it would be a step-by-step program.

fanfeifei@chinadailyhk.com

(HK Edition 08/30/2012 page1)