Different Forms of ORSO Schemes Following the Introduction of the MPF System 強積金制度實施後的不同形式職業退休計劃

Choosing an Interface Arrangement 僱主決定銜接安排時的考慮

When MPF began in 2000, employers already operating ORSO schemes had to decide whether and how to continue them. Where existing employment contracts stipulated the relevant retirement protection, employers had to continue the existing scheme for existing employees who wished to remain.

Employers also needed to assess the administration and other costs of running ORSO and MPF schemes, and whether all existing scheme assets could be transferred into an MPF scheme. Changes to a scheme or its particulars must comply with the scheme terms; operating costs do not override that requirement. [MPFA Study Notes, Tenth Edition, section 6.4](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)

Exempted Schemes with Open or Closed Membership 接受與不接受新成員的豁免計劃

An existing member is a relevant employee who became a member of the scheme on or before 1 December 2000. A relevant employee is an employee aged at least 18 but below 65; a new eligible employee is a relevant employee who is, or will become, eligible for scheme membership.

An MPF exempted ORSO scheme with open membership admits new eligible employees. When offering it to them, the employer must provide a statement explaining their choice between the ORSO scheme and an MPF scheme. Existing members should also have been offered a choice in 2000 between remaining in the ORSO scheme and joining MPF.

An MPF exempted ORSO scheme with closed membership allows existing members to continue accruing benefits, but new relevant employees must join an MPF scheme. Existing members likewise had to receive a once-only choice between staying in ORSO and joining MPF. Closing membership therefore does not stop existing members from building up benefits. [MPFA Study Notes, section 6.4](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)

Top-Up and Frozen ORSO Schemes 「增補」與「凍結」職業退休計劃

Under a top-up ORSO arrangement, all employees are covered by MPF. The existing ORSO scheme is amended to provide extra benefits for existing employees and possibly new eligible employees. ORSO contributions supplement the minimum MPF contribution requirements and cannot reduce mandatory MPF contributions.

A frozen ORSO scheme receives no further contributions for future service. Existing benefits continue to accrue investment returns until members become entitled to payment under the governing rules. The employer must enrol all existing members and new relevant employees in an MPF scheme and make mandatory contributions. [MPFA Study Notes, section 6.4](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)

For a full monthly MPF contribution period outside any contribution holiday, the current income limits are HK$7,100 and HK$30,000. Between these limits, inclusive, each side contributes 5%. Below HK$7,100, the employee pays nothing but the employer still contributes 5%; above HK$30,000, each side contributes HK$1,500. [MPFA: Employees’ Mandatory Contributions](https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees)

Termination: Benefits, Tax and Notifications 終止計劃：利益、稅務及通知

An employer could terminate an ORSO scheme when MPF began or after continuing it for some time. Subject to the scheme terms, the employer may close it and settle its liabilities, or transfer all scheme assets into an MPF scheme or another ORSO scheme that replaces it.

The payout route has an important exception: new members’ minimum MPF benefits must remain preserved. Termination of the original scheme does not itself permit these benefits to be paid entirely in cash.

Where liabilities are paid out outside prescribed circumstances such as retirement, death, incapacity or termination of service, the accrued benefits attributable to employer contributions are generally subject to Hong Kong salaries tax. Benefits received in prescribed circumstances may be wholly or partly exempt; ending the scheme does not itself end an employee’s service.

Termination costs and guarantee provisions must also be examined for possible charges or losses. If the scheme is wound up, the employer must notify the Registrar of Occupational Retirement Schemes and every scheme member within 14 days after winding up commences. [MPFA Study Notes, section 6.4](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)