Information Centre

Emigration has again become the talk of the town recently, along with concern about how to apply for early MPF withdrawal on the ground of permanent departure from Hong Kong (PD claim). It has come to the MPFA’s attention that there have been discrepancies in some media reports and discussions about PD claims. The MPFA would like to take this opportunity to explain the policy and clarify some of the misunderstandings. 

When applying for early MPF withdrawal on the ground of permanent departure from Hong Kong, applicants must first submit a claim form, relevant documents and evidence, and a statutory declaration to the respective MPF trustee stating that they have departed or will depart from Hong Kong to reside elsewhere and have no intention of returning to work or live in Hong Kong. Applicants are obliged to provide documents and evidence that satisfy the trustee that they are permitted to reside in a place outside Hong Kong.

What are the relevant documents and evidence needed to satisfy the trustee? This may vary according to the claimant’s new place of residence, reasons for departure and other personal circumstances. When verifying the eligibility of each PD claim, the trustee will review the totality of all the documents and evidence submitted before coming to a decision. It must be emphasized that travel documents alone are not sufficient to prove the claimant has been allowed to reside outside Hong Kong. Applicants must provide other supporting documents, such as a residence permit issued by the relevant department, information on overseas settlement, public utility account information (such as water or electricity bills), or a copy of a letter of release issued by the Hong Kong Inland Revenue Department to facilitate the assessment. 

For example, providing only a Home Visit Permit, a travel document widely possessed by Hong Kong residents, is not adequate proof that a claimant plans to move to Mainland China. In addition to a Home Visit Permit, the claimant should provide documents such as a Residence Permit for Hong Kong, Macao and Taiwan Residents, utility bills, a tenancy agreement and an employment agreement, as evidence for a PD Claim. Similarly, a British National (Overseas) passport alone is not sufficient proof of emigration to the UK. The applicant should produce additional supporting documents for the trustee to review the case as a whole.

The original intent of the MPF is to help employees save regularly and prepare for retirement. In general circumstances, only scheme members who have reached the age of 65 can withdraw their accrued benefits in a lump sum or by instalments. Therefore, scheme members must keep in mind that the MPF is a long-term investment. Its intent is to allow MPF members to accumulate savings throughout their working life through compounding effect. If members withdraw their MPF early, it will definitely have a profound impact on their retirement savings and may do more harm than good.