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Overview

Overview

The MPFA assumes the role of the Registrar of Occupational Retirement Schemes under the Occupational Retirement Schemes Ordinance (“ORSO”) (Chapter 426, Laws of Hong Kong). Work in this area includes (but is not limited to):
- processing of various changes and applications in relation to Occupational Retirement Schemes (“ORSO schemes”);
- monitoring of ORSO schemes in respect of compliance with on-going requirements of exempted schemes and registered schemes; and
- acting as liaison with professional and industry bodies who have an interest in the retirement schemes industry.

The MPFA is also responsible for exempting certain qualified ORSO schemes from MPF requirements, issuing guidelines and monitoring MPF exempted ORSO schemes under the Mandatory Provident Fund Schemes (Exemption) Regulation (“Exemption Regulation”) (Chapter 485B, Laws of Hong Kong).

ORSO schemes and MPF schemes are both retirement protection schemes set up for employees in Hong Kong. However, the operations of the two types of schemes are different. ORSO schemes are retirement schemes set up voluntarily by employers to provide retirement benefits for their employees, and as such the governing rules are drawn up by individual employers. Since the launch of the MPF System in 2000, MPFA has exempted a number of ORSO schemes that meet the relevant requirements in accordance with the Exemption Regulation (i.e. MPF exempted ORSO schemes). Employers of these MPF exempted ORSO schemes are required to give new eligible employees a one-time option to choose between joining an MPF scheme or the MPF exempted ORSO scheme.
 

Comparison between ORSO Schemes and MPF Schemes

 ORSO SchemesMPF Schemes
Without MPF ExemptionWith MPF Exemption
Relevant LegislationOccupational Retirement Schemes OrdinanceOccupational Retirement Schemes Ordinance & Mandatory Provident Fund Schemes (Exemption) RegulationMandatory Provident Fund Schemes Ordinance (“MPFSO”) (Chapter 485, Laws of Hong Kong)
NatureVoluntaryMandatory
Salary DefinitionSubject to governing rules or trust deedBased on relevant income as defined under MPFSO
Amount of Contributions to the SchemeSubject to governing rules or trust deedEmployee: 5% of the employee’s monthly relevant income (maximum $1,500 per month; not required to contribute if monthly relevant income is less than $7,100)
Employer: 5% of the employee’s monthly relevant income (maximum $1,500 per month)
Vesting of the Scheme’s BenefitsSubject to governing rules or trust deedFull and immediate
EligibilitySubject to governing rules or trust deedAge 18-65 years old
Retirement AgeSubject to governing rules or trust deed65 years old
Preservation and Portability RequirementsNoYes (For *new members only)Yes
Tax ConcessionSubject to deductible amount under the Inland Revenue Ordinance (Chapter 112, Laws of Hong Kong)Employee: maximum $18,000 per year
Employer: not to exceed 15% of employees’ total emolument
Employee: maximum $18,000 per year
Employer: not to exceed 15% of employees’ annual emoluments
Bearer of Administration ChargeSubject to governing rules or trust deedEmployees
Compensation FundNoYes
*New members are defined as employees who join the ORSO schemes after 1 Dec 2000


Occupational Retirement Schemes Appeal Board

The ORSO provides for the constitution of an appeal board, whose functions are to determine appeals against the following decisions of the Registrar:
a. refusal of an application for registration or exemption;
b. cancellation of the registration of a registered scheme; and
c. withdrawal of the exemption certificate of an exempted scheme.

An appeal must be made within two months after the date on which Registrar gives written notice of the above decisions.

Occupational Retirement Schemes Appeal Board


MPF Schemes Appeal Board

The MPFSO provides for the constitution of an appeal board, whose functions are to determine appeals against the following decisions of MPFA:
a. refusal of an application for an exemption certificate;
b. refusal of an application to withdraw an exemption certificate; and
c. withdrawal of an exemption certificate.

An appeal must be made within two months after the date on which MPFA gives written notice of the above decisions.

MPF Schemes Appeal Board

 

Last Revision Date: 07/06/2017