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6,941 ORSO schemes granted MPF exemptions

The Mandatory Provident Fund Schemes Authority (MPFA) has completed processing all MPF exemption applications. Out of the7,111 exemption applications received, 6,941 applications have been approved, whereas 82 applications have been rejected. The number of withdrawn applications is 88.

 

MPFA Executive Director, Ms Hendena Yu, today, (July 31) said that employers whose exemption applications had been approved were required to exhibit the exemption certificate in a conspicuous position at the office. They also need to provide all employees with a copy of the exemption certificate.

 

She reminded employers to communicate with their employees, provide them with the required information with respect to the existing Occupational Retirement scheme and an MPF scheme and allow the employees to choose between the two schemes.

 

For those applications that have been rejected, the MPFA will issue a notice of refusal stating the reason(s) for refusal to the applicants.

 

"Applicants who wish to appeal against the MPFA's decision should make an appeal to the Mandatory Provident Fund Schemes Appeal Board within two months after the issuance of the notice," said Ms Yu.

 

Employers who have not applied for MPF exemptions are advised to:

- operate their existing retirement schemes as top-up schemes; or

- wind up their existing schemes and transfer all scheme assets to MPF schemes as voluntary contributions; or

- freeze their existing schemes and enroll all employees in MPF schemes. Relevant employers may make voluntary contributions to MPF schemes.

 

Ms Yu added, "Employers are urged to act in the best interests of their employees when considering the MPF interface arrangements so that their employees' retirement benefits will not be reduced."

 

"The MPFA wrote to those employers who operate ORSO schemes with employers' contributions over 5% in May 2000 to urge them to maintain the same level of benefits. We will issue another round of letters in September to those who have not made up their minds regarding the interface arrangement."

 

Key figures related to MPF exemption applications and reasons for refusal of application are listed below:

 

No. of applications

No. of members

Received

7,111*

642,000

Approved

6,941

635,000

Withdrawn

88

5,500

Rejected

82

1,570

 

*Comprised of

  • l6,542 registered schemes (covering 642,000 members, representing 70% of all ORSO scheme members)
  • l569exempted schemes

 

Reasons for refusal

No. of applications

Not eligible under the exemption regulations, e.g.

- the schemes were established after October 15, 1995, or

- the applications for registration or exemption were received by the Registrar after January 15, 1996

 

76

Schemes with no membership

2

Schemes with no employers’ contributions

4

                

－ Ends －

 

31 July 2000

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