MPF exam Offsetting of Long Service Payments / Severance Payments 長期服務金／遣散費的抵銷安排 Practice questions

Question 1

Abolition of the MPF offsetting arrangement took effect on 1 May 2025. Which statement is correct about LSP/SP attributable to service on or after that date?

Accepted Answer

The employer may still offset it using benefits from its voluntary contributions

Answer

The employer may offset it using benefits from employee mandatory contributions

Answer

The employer may offset it using benefits from its mandatory contributions made before the transition date

Answer

Benefits from every category of employer contribution are prohibited from offsetting it

Question 2

Mr Chan started employment before 1 May 2025 and left after that date. His employer has paid his statutory LSP, comprising a pre-transition portion of HK$40,000 and a post-transition portion of HK$15,000. Benefits from employer mandatory contributions for that employment total HK$55,000, with no employer voluntary contributions. Assuming all other statutory requirements are met, what is the maximum reimbursement available from that HK$55,000?

Accepted Answer

HK$40,000

Answer

HK$15,000

Answer

HK$55,000

Answer

HK$0

Question 3

Under the MPF arrangements for offsetting LSP/SP, the transition date is 1 May 2025. Which action is NOT permitted? Assume each involves the relevant employment with the same employer and all other statutory requirements are met.

Accepted Answer

Using benefits from employee mandatory contributions to offset the pre-transition portion

Answer

Using benefits from employer mandatory contributions made after the transition date to offset the pre-transition portion

Answer

Using benefits from employer voluntary contributions to offset the pre-transition portion

Answer

Using benefits from employer voluntary contributions to offset the post-transition portion

Question 4

Taking 1 May 2025 as the transition date, which statements are correct for an employee who started before and left after that date? (i) Benefits from employer mandatory contributions made after the transition date may offset the pre-transition portion; (ii) benefits from employer voluntary contributions may offset both portions; (iii) benefits from employee mandatory contributions may offset the pre-transition portion; (iv) benefits from employer mandatory contributions made before the transition date may offset the post-transition portion.

Accepted Answer

(i) and (ii) only

Answer

(i) only

Answer

(i) and (iii) only

Answer

(ii), (iii) and (iv) only

Question 5

Mrs Lee's company has paid LSP to an eligible departing employee. Part of the payment may lawfully be offset using benefits from employer contributions. How should the company seek reimbursement?

Accepted Answer

Promptly submit a request to the eMPF Platform for reimbursement of the amount paid that may lawfully be offset

Answer

Apply directly to MPFA to withdraw the employee's entire MPF account balance

Answer

Require the employee to return all benefits from both parties' mandatory contributions to the company in cash

Answer

Wait until the employee retires before applying to the eMPF Platform

Question 6

After Ms Cheung leaves employment, her employer completes a lawful LSP offset. Her account still holds benefits from both parties' mandatory contributions and her own ordinary voluntary contributions, with no tax deductible voluntary contributions involved. She has not retired and meets no statutory ground for early withdrawal. Which statement is correct?

Accepted Answer

Both parties' mandatory benefits must be transferred and preserved, while withdrawal of her own voluntary contributions depends on the scheme's governing rules

Answer

She may immediately withdraw the entire remaining balance in cash because she has left employment

Answer

Employee mandatory benefits must be preserved, but the remaining employer mandatory benefits should be returned to the employer

Answer

All remaining mandatory and voluntary contributions are invariably locked until retirement, regardless of the scheme's governing rules

Question 7

The current monthly minimum and maximum relevant income levels are HK$7,100 and HK$30,000. Employers and employees generally each contribute 5% of relevant income, capped at the maximum level. Mr Wong earns relevant income of HK$40,000 for a complete contribution month after the transition date of 1 May 2025, with no employee contribution holiday. Which answer correctly states each party's monthly mandatory contribution and whether benefits from that employer mandatory contribution may offset SP for post-transition service?

Accepted Answer

HK$1,500 each; no

Answer

HK$2,000 each; no

Answer

HK$1,500 each; yes

Answer

Employer HK$1,500 and employee HK$0; no

Question 8

The current monthly minimum and maximum relevant income levels are HK$7,100 and HK$30,000. Below the minimum, the employee need not make mandatory contributions, but the employer must still contribute 5% of relevant income. Ms Ho earns relevant income of HK$6,000 for a complete contribution month after the transition date of 1 May 2025. Which answer correctly states the employer's and employee's mandatory contributions and whether benefits from that employer mandatory contribution may offset LSP for post-transition service?

Accepted Answer

Employer HK$300 and employee HK$0; no

Answer

Employer HK$0 and employee HK$0; no

Answer

Employer HK$300 and employee HK$300; no

Answer

Employer HK$300 and employee HK$0; yes

Offsetting of Long Service Payments / Severance Payments 長期服務金／遣散費的抵銷安排

Statutory Payment Liability and the Meaning of Offsetting 法定支付責任與抵銷的含義

The Transition Date: Service Period and Contribution Source 過渡日：分清服務期與供款來源

Employer Reimbursement Procedure and Limits 僱主申請發還的程序與限額

Remaining Benefits and Voluntary Contributions 抵銷後的餘額與自願性供款

Practice