(ECNS) -- The Guangdong-Hong Kong cross-border pension payment service was officially launched on Monday, according to the Guangdong Branch of the State Administration of Foreign Exchange.
The service supports the direct cross-border transfer of portable cash assistance provided by the Hong Kong Social Welfare Department -- including the Comprehensive Social Security Assistance (CSSA) for the elderly, Old Age Living Allowance, and Old Age Allowance -- to Class I bank accounts held by Hong Kong senior citizens at ICBC and Bank of China in Guangdong Province.
The service operates through a system-to-system model.
Hong Kong senior citizens need only to contact the Hong Kong Social Welfare Department or its authorized agents in Guangdong and complete a one-time account registration. Monthly allowances will then be automatically credited to their accounts.
Through the interbank clearing model, the service waives all cross-border remittance fees -- from the point of transfer in Hong Kong to the receipt of funds in the mainland, with zero transaction costs throughout the process. Based on previous remittance fees of about HK$100 (about $12.9) per transaction and monthly disbursements, each Hong Kong senior can save over HK$1,000 (about $129) annually.
The administration said that with the official launch of the service, Guangdong has established a dual-track cross-border elderly care financial service framework, combining this service with the previously launched Guangdong-Macao pension express. This allows senior citizens from Hong Kong and Macao to enjoy a more secure, convenient and comfortable life in their later years in the mainland.
(By Tang Yuxian)
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