The verification and validation of the Life Annuity Scheme has been completed, the Monetary Authority announced today.
The Mortgage Corporation announced in April the tentative key design features of the scheme and appointed an independent consultant to verify and validate it.
The authority said the consultant has reviewed the corporation's actuarial analysis for the scheme and considered the analysis to be in order overall.
Based on the consultant’s conclusion, the corporation confirmed the internal rate of return for the scheme's annuitants will be set at 4%, with 65-year-old men and women annuitants with $1 million premium receiving a monthly payout of $5,800 and $5,300.
Corporation Chairman, Financial Secretary Paul Chan said the scheme has attracted widespread public attention, discussion and suggestions for enhancement.
"Subject to prudent risk management principles, we will consider such suggestions, including suitably increasing the $10 billion subscription quota of the scheme," he said.
The corporation’s Chief Executive Officer Raymond Li said they will strive to launch the scheme by the middle of next year.
"We will endeavour to complete the preparatory tasks within the tight implementation schedule," he said.
"Meanwhile, the Hong Kong Mortgage Corporation is formulating the operational details of the scheme, including the distribution channels and allocation methods, and will continue to consult stakeholders on the arrangements."
