Offering Options under MPF Exempted ORSO Schemes

For Existing Members who Opt to Remain in the Existing Scheme

If you are an existing member  (i.e. relevant employees who became an ORSO scheme member on or before 1 December 2000)  who has decided to remain in the scheme, your existing and future benefits in the scheme will not be subject to the preservation, portability and withdrawal requirements of an MPF scheme. Your benefits accrued under the ORSO scheme will be calculated based on the governing rules of the scheme and can be withdrawn when certain conditions specified under the governing rules take place (e.g. upon retirement, termination of service, and so on).

However, the Mandatory Provident Fund Schemes (Exemption) Regulation sets out that the trustee cannot forfeit your "minimum MPF benefits" upon dismissal for cause.

If you are already an existing member, and are transferred from one MPF exempted ORSO registered scheme to another as a result of an inter-group transfer, you may retain your "existing member" status if the transfer meets specified conditions. Also, you will not be subject to the "minimum MPF benefits" requirement when you qualify for withdrawal of your benefits.

Similarly, if you are transferred from one MPF exempted ORSO registered scheme to another under the same company, you can retain your "existing member" status. In other words, you will not be subject to the "minimum MPF benefits" requirement when you qualify for withdrawal of your benefits.

For New Eligible Employees who Opt to Join an MPF Exempted ORSO Scheme

If you are a new eligible employee (i.e. a relevant employee who is employed after 1 December 2000), you are entitled to an option offered by your relevant employer to choose to become a member of an MPF scheme, or an MPF exempted ORSO scheme. Also, your employer should provide certain specified information to you to help your decision making, and in the case of an MPF exempted ORSO registered scheme, your employer should also provide illustrative examples demonstrating the differences in benefits between the ORSO registered and MPF schemes.

If, as an eligible employee, you decide to join an MPF exempted ORSO registered scheme, you will be subject to the preservation, portability and withdrawal requirements up to an amount equivalent to the "minimum MPF benefits". Your accrued benefits in excess of the "minimum MPF benefits"can be paid out as a cash lump sum once certain conditions specified under the governing rules are met. Your "minimum MPF benefits" will be transferred to an MPF scheme.

Please click here for more details about the "minimum MPF benefits".

For Existing Members and New Eligible Employees who Opt to Join an MPF Scheme:

All members who opt to join an MPF scheme are required to make contributions to the MPF scheme together with your employer.

Accrued benefits of an existing member are treated in accordance with the governing rules of the individual ORSO scheme.