Info Center

Press Releases

Withdrawal of MPF benefits by instalments proposed to commence on 1 February 2016

Scheme members will be allowed to withdraw their Mandatory Provident Fund (MPF) benefits by instalments upon retirement and early retirement starting from 1 February 2016, under the Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 (Commencement) (No.2) Notice 2015 (“Commencement Notice”) gazetted today (9 October).
 
Currently, upon reaching the age of 65 and early retirement at the age of 601, scheme members must either withdraw their MPF benefits in a lump sum, or leave all their MPF benefits in the schemes for continuous accumulation.
 
Under the new arrangement, these scheme members will be allowed to withdraw their MPF benefits by instalments, in addition to the lump sum payment. Trustees must not charge any fee, impose any penalty or make any deduction from the member’s account, other than necessary transaction costs2, for the payment of accrued benefits in a lump sum or by instalments in any year for the first four instalments of that year.

The Commencement Notice will be tabled in the Legislative Council for negative vetting on 14 October 2015.
 
– Ends –
9 October 2015

1 The applicant must also declare that he has permanently ceased all employment and self-employment, with no intention of becoming employed or self-employed again.
2 Necessary transaction costs are incurred, or reasonably likely to be incurred, by the trustee in selling or purchasing investments in order to give effect to the payment; and are payable to a party other than that trustee.
< Back