On dismissal or redundancy of a member, the entitlement of benefits is subject to the governing rules.
For some ORSO schemes, the governing rules allow employers to forfeit either their portion of a member’s benefits or both the employer’s and member’s portions of the benefits under the ORSO scheme if the member is dismissed for cause (i.e. due to misconduct, fraud, or dishonesty, or is otherwise lawfully dismissed from employment).
For MPF exempted registered schemes, the trustee cannot forfeit a member’s minimum MPF benefits (“MMB”) upon their dismissal from employment. Nevertheless, the trustee can withhold, in accordance with the governing rules of the scheme, the portion of benefits that is in excess of MMB.
When a member’s employment is terminated with no reason given by the employer, or for reasons such as redundancy or severance, they may be entitled to receive benefits under the ORSO scheme. This is generally a lump sum from the scheme equal to the total of the member’s balance and the percentage of the employer’s balance determined in accordance with the vesting scale under the governing rules.
Last Revision Date: 06/10/2012