III. Key Features of the MPF System 強積金制度的主要特點

Stringent authorization requirements, professional indemnity insurance and the Compensation Fund provide several layers of protection for MPF scheme assets. They address service providers’ suitability and specified losses without guaranteeing contributions or investment returns.

Stringent Authorization Requirements · Professional Indemnity Insurance · Compensation Fund

The MPF trustee remains responsible for overall scheme management and appoints service providers to perform particular functions. Candidates must distinguish investment management, asset custody and scheme marketing, together with the requirements applying to each role.

There are three types of MPF scheme: Employer Sponsored Schemes, Master Trust Schemes and Industry Schemes, which differ mainly in membership and operating arrangements. Industry Schemes particularly suit casual employees in catering and construction, but employers are not required to choose them.

Subject to exemptions, MPF generally covers people aged 18 to 64 who meet the employment or self-employment conditions. Regular employees must have been continuously employed for at least 60 days; this employment requirement does not apply to casual employees in catering and construction or to self-employed persons.

Specified categories of people are exempt from joining an MPF scheme, and their employers are also exempt in respect of that employment. Some exemptions do not cover other work, and the applicable enrolment and contribution requirements must be considered when exemption ends.

Registration with the eMPF Platform and enrolment into an MPF scheme are separate steps; employers and self-employed persons must meet their respective enrolment deadlines. Trustees must disclose the required scheme information, issue notices of participation on time and accept applicants who meet the requirements.

Duties of Employers · Duties of Self-employed Persons · Duties of Trustees

Mandatory contributions depend on relevant income, applicable income limits and payment deadlines; ordinary voluntary contributions and TVC have different preservation and tax arrangements. Late mandatory contributions attract a contribution surcharge and may lead to financial penalties and prosecution.

Mandatory Contributions · Voluntary Contributions · TVC · Tax Allowances · Default Contributions

Both employee and employer mandatory contributions vest fully and immediately in the employee when paid to the trustee; their investment returns, after allowing for losses, also vest fully and immediately. Employer voluntary contributions vest according to the scheme's governing rules, and short service does not allow the employer to reclaim vested benefits.

Preservation keeps MPF savings available for retirement: all accrued benefits arising from mandatory contributions and tax deductible voluntary contributions must generally remain preserved until age 65, subject to statutory early withdrawal grounds. Payment of other voluntary contributions depends on the scheme’s governing rules.

Portability allows members to transfer accrued benefits between MPF accounts under specified conditions; the benefits eligible for transfer, destination and frequency depend on their source, account type and employment status. Members should assess investment risks and guarantee conditions, while trustees must observe the applicable transfer deadlines.

Relevant Employee Who Is under Current Employment · Relevant Employee Who Ceases Employment with His/Her Employer · Self-employed Person Becomes a Relevant Employee of an Employer · Notes to Member to Make an Election to Transfer · Duties of the Trustee on Transfer of Accrued Benefits

Accrued benefits derived from mandatory contributions normally remain preserved until age 65, with early withdrawal allowed on six specified grounds. Candidates must distinguish the eligibility conditions, evidence, payment methods, authorised claimants, charges and payment deadlines.

Accrued benefits may become unclaimed benefits when the applicable conditions, tracing procedures and time limits are met, even if a claim has already been lodged. Candidates should distinguish the starting points of the different six-month periods, the eMPF Platform’s tracing duties and the Central Register enquiry arrangements.

From 1 May 2025, accrued benefits from employer mandatory contributions cannot offset the post-transition portion of long service payment or severance payment, but remain available for the pre-transition portion; benefits from employer voluntary contributions remain available for both portions. After paying, employers should promptly apply through the eMPF Platform for reimbursement, while remaining mandatory contribution benefits remain subject to preservation requirements.

Employers must enrol employees covered by the MPF System, calculate and pay both parties’ contributions on time, and provide contribution information and records. When an employee other than a casual employee leaves, the employer must notify the eMPF Platform; benefits will be transferred to a personal account in the same scheme if the employee makes no transfer election within the prescribed period.

Employers Who Are Not Exempt from MPFSO · When a Relevant Employee (Other Than a Casual Employee) Ceases Employment

The Non-Compliant Employer and Officer Records (NCEOR) let the public check MPF non-compliance records arising from legal proceedings initiated by the MPFA. The first part covers criminal convictions and civil awards/judgments; the second identifies employers and officers convicted of MPF offences on two or more occasions.