16.05.2018

Enhancement Measures of Continuing Education Fund and Implementation Time

Attention: The enhancement measures of the Continuing Education Fund have yet to be implemented. For learners enrolling on courses that commence before the implementation date (i.e. 1 April 2019), reimbursement claims under the Continuing Education Fund will be processed in accordance with the existing requirements and arrangements (including the subsidy ceiling of $10,000).

The Government has obtained approval from the Finance Committee of the Legislative Council for funding injection into the Continuing Education Fund (CEF) to support the implementation of various enhancement measures proposed earlier.

The enhancement measures will be implemented with effect from 1 April 2019, with details as follows –

increasing the CEF subsidy ceiling from the current level of $10,000 to $20,000 per applicant;

closed CEF accounts to be re-activated, so that the account holders can make use of the unused balance (if any) under the original subsidy of $10,000 as well as the additional subsidy of $10,000;

regarding the co-payment ratios by learners (i.e. the percentage of course fee to be borne by learners), the ratio for the first $10,000 subsidy is 20% of the course fee and that for the second $10,000 subsidy is 40% of the course fee;

relaxing the upper age limit for applicants from 65 to 70;

expanding the scope of CEF courses to all eligible courses registered in Qualifications Register (QR);

lifting the restrictions on the validity period or the number of claims for CEF accounts, namely, applicants may submit an unlimited number of reimbursement claims for a total subsidy up to $20,000 before reaching the upper age limit (i.e. before the date they reach the age of 71);

an applicant may submit an application to open a CEF account together with an application for the first reimbursement claim after successful completion of the first CEF course, instead of the current requirements of submitting the application to open a CEF account before the commencement of the CEF course. Moreover, applicants are required to submit their reimbursement claims within one year upon the successful completion of a CEF course; and

enhancing the quality assurance monitoring of CEF courses.

Details of the enhancement measures and a comparison with the existing arrangements are at Annex. The report of the Consultancy Study on the Review of CEF can be found here.

Matters Requiring Attention

The enhancement measures will apply only to CEF courses that commence on or after 1 April 2019. The enhancement measures have no retrospective effect. For learners enrolling on CEF courses that commence before 1 April 2019, their CEF reimbursement claims will be processed in accordance with the existing requirements and arrangements, i.e. the requirements such as the subsidy ceiling of $10,000 and the validity period of accounts are still applicable.

Example:

Course fee subject to a reimbursement claim: $15,000

Current unused account balance: $3,000

Enrolling on courses that commence before 1 April 2019:

Example Unused balance in account Co-payment ratio by learner Cost to be borne by learner concerned Cost to be subsidised by Government Account balance after disbursement of subsidy Original ceiling of $10,000 $3,000 20% $12,000 (As the learner’s account balance is $3,000 only, the learner has to bear the difference between the course fee and $3,000.) $3,000 $0

[Note: The learner may, in respect of another CEF course that is enrolled on or after 1 April 2019, seek CEF reimbursement from the additional subsidy of $10,000 in accordance with the new requirements and arrangements.]

After implementation of the enhancement measures, the first $10,000 subsidy will first be dealt with when processing reimbursement claims in respect of CEF courses that commence on or after 1 April 2019. If an applicant’s first $10,000 subsidy has yet to be used up at the time of applying for reimbursement, the account balance and the cost to be borne by the applicant on the basis of the co-payment ratio will be calculated. The balance of the course fee (after deducting that amount) will be considered against the second $10,000 subsidy.

Example:

Course fee subject to a reimbursement claim: $15,000

Current unused account balance: $3,000

Enrolling on courses that commence on or after 1 April 2019:

Example Unused balance in account Co-payment ratio by learner Cost to be borne by learner concerned Cost to be subsidised by Government Account balance after disbursement of subsidy Original ceiling of $10,000 $3,000 20% $750 $3,000 $0 Additional ceiling of $10,000 $10,000 40% $4,500 $6,750 $3,250 Total = $5,250 = $9,750 = $3,250

[Note: The learner may enrol on another CEF course and seek reimbursement from the account balance in accordance with the new requirements and arrangements.]

Enquiry

For any enquiries, please call the 24-hour hotline 3142 2277 (operated by the 1823 staff).

Office of the Continuing Education Fund

16May 2018

Annex

A Comparison of Existing Arrangements and Enhancement Measures of Continuing Education Fund (CEF)

Attention: Effective from 1 April 2019, all enhancement measures will apply to all new, currently valid and closed accounts. The enhancement measures will only be applicable to CEF courses that commence on or after 1 April 2019. Learners enrolling on CEF courses that commence before 1 April 2019, their CEF reimbursement claims will be processed in accordance with the existing regulations and arrangements.