Information Centre

Employers who operate retirement schemes that fall under the ambit of the Occupational Retirement Schemes Ordinance (ORSO) and meet its definition of "occupational retirement scheme" are required to apply for a certificate of registration or exemption to the MPFA.

The legislation applies to all schemes operated in and from Hong Kong. Offshore schemes (i.e. schemes whose domicile is outside Hong Kong and whose trust is governed by foreign laws) providing benefits to members employed in Hong Kong are also covered.

For details, please refer to the Occupational Retirement Schemes Ordinance (Chapter 426, Laws of Hong Kong)

In addition to the ORSO, MPF exempted ORSO schemes are governed by the Mandatory Provident Fund Schemes (Exemption) Regulation ("Exemption Regulation"), which sets out in detail the arrangements for the interface between ORSO and MPF schemes, and specifies the circumstances for the exemption of ORSO schemes from MPF requirements. It also stipulates, for ORSO schemes that have successfully applied for MPF exemption, the mandatory conditions employers of the relevant ORSO schemes are subject to, as well as the provisions applicable to the ORSO schemes' trustees, trustees' directors, and appointed persons managing the investment of the assets.

 

For details, please refer to the Mandatory Provident Fund Schemes (Exemption) Regulation (Chapter 485B, Laws of Hong Kong).

An employer may spin off a new scheme from a relevant ORSO registered scheme and apply for MPF exemption. The MPFA considers the following when exercising its power to issue an exemption certificate:

• whether the scheme is a new scheme established as a result of scheme restructuring or bona fide business transactions (including company amalgamation, restructuring and joint ventures);
• whether the members of the original scheme were exempt from the MPF legislation;
• whether the terms and conditions of the scheme are generally as favorable as the original scheme; and
• whether a substantial portion of the members of the scheme comprise members of the original scheme.

 

To obtain a copy of the application form and the relevant guidelines, please refer to Application for MPF Exemption Certificate for a scheme established as a result of scheme restructuring or bona fide business transactions.

No. In general, a change of benefit type will not affect the MPF exemption status of the ORSO scheme if the change only involves an amendment to the scheme rules.

 

If you believe that the change of benefit type may affect scheme members’ interests, you may offer the affected scheme members the choice of joining an MPF scheme or remaining in the MPF exempted ORSO registered scheme.

 

If change of benefit type will reduce the future benefits of scheme members, you are required to offer the affected scheme members the choice of joining an MPF scheme or remaining in the MPF exempted ORSO registered scheme when you decide to reduce the benefits.

 

In addition, if amendment to the terms of the scheme that would result in an alteration, to the member’s detriment, to either his accrued rights under the scheme or his vested benefits must be consented to by not less than 90% of the members of the scheme.

The following specified forms should be used to report scheme changes by a relevant employer or the representative employer. The employer is obliged to notify the MPFA within one month of certain changes.

For details, please refer to Change of Scheme Particulars.

 

** With regard to an MPF exempted ORSO scheme, please note that prior approval by the MPFA is required for the appointment or retirement of an individual trustee and/or corporate trustee that is not a registered trust company. Please refer to Question #6.

In the case of an  MPF exempted ORSO registered schemes, prior approval from the MPFA is required for:

• the appointment or retirement of an individual trustee;
• the appointment or retirement of a corporate trustee which is not a registered trust company incorporated in Hong Kong; and
• the appointment or retirement of a director of a trustee of the scheme being neither a registered trust company nor a company incorporated outside Hong Kong that is comparable to a registered trust company.
  
  

To obtain the relevant guidelines, please refer to Application for Approval of Appointment/Retirement of Trustee.

• The relevant employer is required to submit the employer's auditor's statement (i.e. Forms A and B) to the administrator's auditor not later than four months after each of the scheme's financial years.
• The relevant employer is required to give the MPFA a written statement in relation to the membership of the scheme within one month after the end of a financial year.

 

Relevant employers unable to meet the deadline, should apply in writing to MPFA in advance of the due date. Applications for extension of time will only be granted in exceptional circumstances due to justifiable and unforeseeable reasons.

 

For further details, please refer to Documents to be Provided Annually.

Yes. The relevant employer or representative employer of an ORSO exempted scheme shall, for each period of 12 months beginning on the date of the exemption certificate or an anniversary of the date, give the MPFA an annual report which consists of the following documents:

 

a.   an annual return;
b.   a written statement on ongoing compliance with the employment-based criterion (“employment based statement”); and
c. 

1. (for schemes exempted under section 7(4)(a)) documentary evidence on the validity of the registration or approval by an authority in a country, territory or place outside Hong Kong which performs in that country, territory or place functions which are generally analogous to the functions conferred on the MPFA by the Occupational Retirement Schemes Ordinance ("documentary evidence"); or
2. (for schemes exempted under section 7(4)(b) or (c)) a written statement of the total number of scheme members and the number of members who were Hong Kong permanent identity card holders on the date of the statement (“membership statement”).

 

The annual report shall be provided within one month after the expiration of the 12-month period or such longer period as the MPFA may allow.

 

For more details, please refer to Documents to be Provided Annually.

The written statement is required to be signed by an authorized person with company chop of the relevant employer or representative employer.

 

To reap the benefits of operational efficiency and protect the environment by reducing paper usage, MPFA strongly encourages relevant employers and representative employers to use the eORSO Portal for submitting annual returns and written statements.

 

The annual return and written statement can also be sent by the relevant employers and representative employers to The Registrar of Occupational Retirement Schemes, Level 12, Tower 1, The Millennity, 98 How Ming Street, Kwun Tong, Hong Kong. Please note that the MPFA will not accept any underpaid mail delivered via the Hongkong Post which will return the mail item to the sender if there is a return address or dispose of the item in accordance with its procedures. To avoid unsuccessful delivery of your mail, please ensure your mail items addressed to the MPFA carry sufficient postage before posting to us.

If the relevant employer of a registered scheme becomes aware of a reportable event that occurs on or after 26 June 2020, he must within seven working days give written notice to the MPFA setting out the particulars of the event such as the date the event occurred, case details and details of remedial action planned or taken, etc.

 “Reportable event” refers to non-compliance with requirements in relation to scheme assets, members’ benefits, funding, trusteeship, investment, transfer of benefits or eligible person.

For a sample of the written notification, please refer to Notification of Reportable Events.

The legislation stipulates that accrued benefits in respect of a member who joined an ORSO scheme after the launch of the MPF System on 1 December 2000 (i.e. a new member) are subject to the preservation, portability and withdrawal requirements up to an amount equivalent to the MMB.

 

In relation to a new member, MMB means the lesser of

(a) the member’s benefits accrued and held under the scheme during the period when the exemption certificate applied to the scheme which for this purpose means the years of post-MPF service; and
(b) 1.2 × final average monthly relevant income × years of post-MPF service.

 

Existing members of MPF exempted ORSO registered schemes (i.e. employees who joined an ORSO scheme on or before 1 December 2000) are exempt from the preservation, portability and withdrawal requirements under the legislation. Like a new member, however, an existing member’s MMB cannot be forfeited upon dismissal for cause.

 

For details, please refer to Preservation and Withdrawal Requirements of Minimum MPF Benefits.

The legislation stipulates that the "years of post-MPF service" means the member's continuous years of service (including part thereof), counted from the date of joining the scheme, 1 December 2000 or (if the member was previously paid on the ground of terminal illness) the date on which the trustee of the scheme received his claim for which benefits were last paid, whichever is the latest, to the earliest of the date of termination of employment, (in the case of the winding up of the scheme) the date of cessation of scheme membership, the effective date of withdrawal of the MPF exemption certificate or the date on which the trustee of the scheme receives his latest terminal illness claim for which benefits have not been paid.

 

In deriving the "years of post-MPF service", service is counted in complete years and months. In certain specific situations such as incomplete months, the trustee, employer and employee will be called upon to come to a consensus on an arrangement as allowed by the governing rules of the scheme. The employer is also reminded to explain clearly to the member the basis of the calculation agreed upon.

 

For details, please refer to V.4 Guidelines on MPF Exempted ORSO Schemes - Preservation of Benefits .

A new member’s MMB cannot be forfeited upon dismissal for cause or be liable for and stand charged with the settlement of any losses suffered by the relevant employer caused by a new member. Nor shall it stand charged with any debts owing to the relevant employer or any other person by the new member.

 

Note: this non-forfeiture requirement also applies to existing members who joined an ORSO scheme on or before 1 December 2000. But the existing member may withdraw and be paid the MMB in accordance with the governing rules of the scheme.

A relevant employer of an ORSO scheme should pay a periodic fee in respect of each period of 12 months commencing from (a) the first anniversary date of registration, or (b) the first anniversary of the date of the exemption certificate. These fees should be paid not later than one month after the first day of the period in respect of which they are payable. If the fee is not paid within the one-month timeframe, a surcharge equal to the amount of the unpaid fee shall be payable.

 

The following periodic fees are payable for ORSO schemes:

Relevant employers of ORSO schemes should note that it is not the MPFA's obligation to issue a fee reminder ahead of the due date. Negligence by employers, non-receipt or late receipt of the fee reminder and similar reasons do not exempt employers from the statutory requirement of paying periodic fees before the due date.

 

Employers can settle the periodic fees by scanning the Faster Payment System (FPS) QR Code printed on the notification letter from MPFA. Alternatively, employers may remit payment via a paper crossed cheque or bank draft made payable to the “MPFA Administration Account”. Please ensure that the name of the ORSO scheme and its registration or exemption number are written on the back of the cheque or bank draft. Additionally, payment can be made by sending an e-cheque through the e-Cheque Collection Portal. Please note that post-dated cheque will not be accepted.

 

For payments made from overseas, MPFA only accepts payment by bank draft, which can be drawn on a bank in Hong Kong and denominated in Hong Kong Dollar. Any bank charges incurred must be borne by the employer.

 

For FPS payment method details, please refer to “Quick Start Guide for Using the Faster Payment System (FPS) to Make Payments”.

The MPFA pledges to issue an official receipt within seven working days after clearance of the cheque.

A relevant employer of an ORSO registered scheme must give notice of termination of the scheme to the MPFA within 14 days of the commencement of the termination process. The MPFA will cancel the registration of the ORSO scheme only upon receiving from the employer and designated person confirmation of termination and any documents necessary to satisfy the MPFA of the situation.

 

Before the deletion of the registration entry, the fee reminder will continue to be sent to the employer. If the periodic fee due date falls before the effective termination date of the scheme, the employer is still liable to pay the fee and surcharge, if any.

The MPFA may impose on the employer of an MPF exempted ORSO registered scheme a surcharge on the amount of contribution arrears. This surcharge is 15% and 20% per annum upon the issuance of second and third notices respectively.

The MPFA may also institute legal proceedings against the employer to recover, as a debt due to the MPFA, any arrears, contribution surcharge and penalty (if warranted) at any time it deems appropriate.

For more details, please refer to Contributions Requirements.

If an employer has paid an LSP/ SP to an employee in accordance with the Employment Ordinance (Chapter 57, Laws of Hong Kong), the employer may apply to the administrator of the ORSO scheme for repayment from the employee's vested benefits attributable to the employer's contributions.

 

With regard to an MPF exempted ORSO registered scheme, the employer may make use of the part of a new member's minimum MPF benefits derived from the employer's contributions to offset the LSP/SP to which the member is entitled.

 

For further details, please refer to V.4 Guidelines on MPF Exempted ORSO Schemes - Preservation of Benefits .

 

For details about calculating LSP/SP and the timing for payment of LSP/SP, the employer should refer to the relevant provisions of the Employment Ordinance.

Under the Inland Revenue Ordinance (Chapter 112, Laws of Hong Kong), certain ORSO contributions are tax deductible.

 

For a relevant employer, contributions up to 15% of the employee's total emolument made to an ORSO scheme are profits tax deductible.

 

For the latest updates or details, please visit the website of the Inland Revenue Department's Website.

Information required to be provided to members includes:

• notifications of amendment of the scheme;

• information about the criteria and conditions for scheme membership, the calculation method for contributions, the payment benefits and the conditions of benefit payment;

• annual statement (required to provide within six months after the end of the financial year of the scheme), which sets out the member’s existing benefits under the scheme and the expected benefits that can be received at the time of retirement based on the number of years of service;

(written request by members) 

• the detailed description of the member’s benefits under the scheme when termination of employment (required to provide within three months after the termination of employment);  
• details of scheme administrator or designated person of the offshore scheme;

• members and addresses of the consultative committee (if any).

An employer must provide the following information, in Chinese and English, to its new eligible employees not later than 10 days after he/she becomes such employee:

 

- A statement:

 

1. to the effect that he/she has an once only choice to become a member of the MPF exempted ORSO registered scheme or to become a member of the MPF scheme;
   and
2. advising him/her of the date (i.e. not later than 30 days after he/she becomes such an employee) before which he/she shall give notice in writing to the employer of his/her choice. Otherwise, he/she will be deemed to have chosen the MPF scheme.

 

- In relation to both types of schemes, information including:

 

1. the law of which governs the scheme
2. particulars of the benefit structure of the scheme:
   
   
   • formula for calculating the amount of benefits, income to which the formula applies and the required level of member’s contribution, if any, in the case of a defined benefit scheme 
   • level of employer’s and employee’s contribution in the case of a defined contribution scheme
   • particulars clearly identifying the income from which the employer’s and employee’s contributions are required to make
   • vesting rights, preservation and portability of benefits
     
     
3. the investment choices available to members, if applicable
4. who bears the investment risk
5. name of trustee of the scheme 
6. particulars of administrative costs and who bears those costs

 

- Compensation fund coverage for MPF scheme;

 

- Illustrative examples to demonstrate the differences in benefits between the two types of schemes;

 

- Subject to the governing rules of the MPF exempted ORSO registered scheme, the relevant employer’s rights under the scheme to:

 

• reduce benefits or contribution level for future services
• close membership to new employees
• withhold benefits from a member who has been lawfully dismissed
• wind up the scheme

 

- The address, telephone and facsimile number of the person who can answer enquiry on behalf of the employer in relation to both types of schemes.

Comparative Information of MPF exempted ORSO Schemes and MPF Schemes 

An employer must provide the following information, in Chinese and English, to its new eligible employees not later than 10 days after he/she became such employee:

 

- A statement:

 

1. to the effect that he/she has an once only choice to become a member of the MPF exempted ORSO exempted scheme or to become a member of the MPF scheme;
   and
2. advising him/her of the date (i.e. not later than 30 days after he/she becomes such an employee) before which he/she shall give notice in writing to the employer of his/her choice. Otherwise, he/she will be deemed to have chosen the MPF scheme.

 

- In relation to both types of schemes including:

 

1. whether the scheme is governed by trust or the subject of/regulated by an insurance arrangement
2. the law of which governs the scheme
3. particulars of the benefit structure of the scheme:
   
   
   • formula for calculating the amount of benefits, income to which the formula applies and required level of member’s contribution, if any, in the case of a defined benefit scheme 
   • level of employer’s and employee’s contribution in the case of a defined contribution scheme
   • particulars clearly identifying the income from which the employer’s and employee’ contributions are required to make
   • vesting rights, preservation and portability of benefits

 

- Name of administrator of the ORSO exempted scheme

 

- Name of trustee of the MPF scheme

 

- The address and telephone and facsimile number of the person who can answer enquiry on behalf of the employer in relation to both types of scheme

 
Comparative Information of MPF exempted ORSO Schemes and MPF Schemes 

Upon termination or winding up of an ORSO registered scheme (except in pursuance to a court order under section 48 of Occupational Retirement Schemes Ordinance), the relevant employer and designated person must give written notice to both the MPFA and each member of the scheme within 14 days of the commencement of the termination or winding up process.

 

For details, please refer to Termination of Scheme / Withdrawal of Exemption Certificate.

 

Yes, the employer is required to submit the written statement to the MPFA to cover the period up to the effective date of termination of the ORSO scheme.

 

For details, please refer to Documents to be Provided Annually.

For those employers who have not yet registered an account on the eORSO Portal, please contact MPFA by email to eORSO@mpfa.org.hk for eORSO Portal account registered information. Login ID and password will be sent to the designated email address of the employer upon successful creation of the eORSO Portal account.

Primary account is used by the authorized person of the employer for both preparation and submission of annual documents to the MPFA via eORSO Portal. Sub-account is used by the authorised person of the Primary account user only for preparing annual documents.

Please click on “Forgot Password” button on the login page, and then input the login ID and the designated email address for requesting the new password. New password will be sent to the designated email address accordingly.

Employer can contact MPFA by sending the request by email to eORSO@mpfa.org.hk for updating the new authorised person and/or contact details for the Primary account.

After logging into eORSO Portal, please navigate to the “eForm Submission” page by clicking the “eForm Submission” menu item under the “AR Submission “menu item.

 

For details of the procedures for submission via eORSO Portal, please refer to the User Manual and User Procedures .

Both Primary account users and Sub-account users can view the history of submitted documents in the eORSO Portal. After logging into the eORSO Portal, please navigate to the “Submission History” page by clicking the “Submission History” item under the “AR Submission “menu item.

 

For details, please refer to User Manual .

With effect from 1st January 2020, the employer should ensure that the new employee completes, signs and submits the self-certification form properly and promptly. Otherwise, account opening process will be adversely affected and could not be completed.

 

For details in relation to AEOI, please visit:

The FAQ for AEOI by Hong Kong Trustees’ Association

AEOI webpage in Inland Revenue Department