Comparison of Features 特點比較

Scheme Design and Governing Law 計劃性質與適用法律

Under a defined contribution scheme, accrued benefits depend on accumulated contributions and investment returns. Every MPF scheme uses this basis. An ORSO scheme may instead provide defined benefits, generally calculated using a predetermined formula referring to factors such as salary and years of service.

MPF is a compulsory system and its schemes are governed by Hong Kong law. Employers establish ORSO schemes voluntarily, and these schemes may be governed by the law of a place outside Hong Kong. These basic features apply across the different ORSO categories. [MPFA Study Notes, Tenth Edition, sections 6.1 and 6.2](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=92)

Three ORSO Categories and Service Provider Requirements 三類職業退休計劃與服務提供者要求

An ORSO exempted scheme is exempt from registration under the Occupational Retirement Schemes Ordinance. MPF exemption is a separate status. Exemption from ORSO registration does not automatically provide MPF exemption.

The first comparison category is non-MPF exempted ORSO schemes, covering both ORSO registered and ORSO exempted schemes without MPF exemption. The second is MPF exempted ORSO exempted schemes. Neither category requires the corresponding MPF-style trustee approval.

The third category is MPF exempted ORSO registered schemes. These have trustee approval requirements and minimum standards for trustees and investment managers.

MPF schemes require approved trustees and impose eligibility requirements on trustees, investment managers and custodians. Remember the different scope: the corresponding minimum standards for MPF exempted ORSO registered schemes identify trustees and investment managers, while MPF eligibility requirements also cover custodians. [MPFA Study Notes, Tenth Edition, section 6.2](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=94)

Vesting, Preservation and Portability 權益的歸屬、保存與可調動性

Vesting concerns a member's ownership of benefits. Employer mandatory MPF contributions become 100% vested when paid into the member's account, without an additional service requirement. Employer contributions under an ORSO scheme vest according to its governing rules; immediate full vesting cannot be assumed for every scheme.

Preservation concerns when benefits may be withdrawn; portability concerns transferring benefits to another scheme under the applicable rules. Benefits derived from mandatory MPF contributions must be preserved and can be transferred as permitted. Immediate vesting therefore does not give unrestricted access to cash.

For new members of an MPF exempted ORSO registered scheme, minimum MPF benefits must be preserved and are portable. The qualifications matter: this protection concerns new members, minimum MPF benefits and ORSO registered schemes. It cannot be extended automatically to every member and all benefits in every ORSO scheme. [MPFA Study Notes, Tenth Edition, section 6.2](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf#page=94)

Statutory Participation and Contribution Rules 參加及供款的法定基準

For regular employees, relevant employees employed for 60 days or more must join MPF unless exempt. MPF also specifies a minimum contribution rate, a definition of relevant income and minimum and maximum relevant income levels. Employers cannot choose their own statutory contribution basis.

For monthly paid regular employees, each side normally contributes 5% of relevant income. The current monthly minimum is HK$7,100 and maximum HK$30,000. Below the minimum, the employee pays nothing but the employer still pays 5%; above the maximum, each side pays HK$1,500 in mandatory contributions. [MPFA: Employee Contributions](https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees)

Non-MPF exempted ORSO schemes and MPF exempted ORSO exempted schemes do not require equivalent MPF provisions on participation, minimum contributions, income limits, preservation, portability and service provider eligibility. They still have governing rules and other applicable legal obligations. The MPF contribution formula cannot simply be treated as an ORSO scheme's contribution rule.