Requirements and Calculation of Minimum MPF Benefits

The minimum MPF benefits are subject to a preservation requirement. However, there are circumstances under which the benefits may be paid before reaching retirement age:

• claim of benefits on the ground of early retirement after reaching the age of 60;
• permanent departure from Hong Kong;
• total incapacity; and
• death.

The minimum MPF benefits applicable to a new member of an MPF exempted ORSO registered scheme is defined as the lesser of:

• the member's benefits accrued under the scheme during the period when the exemption certificate applied to the scheme; and
  
  
• 1.2 x final average monthly relevant income (capped at $20,000) x years of post-MPF service, where:

"final average monthly relevant income", in relation to a member's relevant income, means the member's relevant income per month averaged over whichever of the following is applicable -

1. if the member has been a member of the scheme for not less than 12 months after 1 December 2000, the period of 12 months (excluding any unpaid leave or maternity leave taken by the member pursuant to any enactment or contract) immediately preceding the date of termination of his employment or the date on which he ceases to be a member or the date of the coming into effect of the withdrawal of the exemption certificate;
   
   
2. in any other case, the period (excluding any unpaid leave or maternity leave taken by the member pursuant to any enactment or contract) since the date the member joined the scheme to the date of the termination of his employment or the date on which he ceases to be a member or the date of the coming into effect of the withdrawal of the exemption certificate; and

"years of post-MPF service" means the member's continuous years of service (including part thereof) from the date he joined the scheme, or 1 December 2000, whichever is the later, to the date of termination of his or her employment, or the date on which he or she ceases to be a member, or the date of coming into effect of the withdrawal of exemption certificate.

For an explanation of the calculation method and illustrative examples regarding "the minimum MPF benefits", please click here.

Employers and existing members of MPF exempted ORSO registered schemes are exempt from the preservation, portability and withdrawal requirements of the provisions under MPFSO. However, a trustee cannot forfeit an existing member's "minimum MPF benefits" upon dismissal for cause.