FAQs on the Legislation Related to ORSO Schemes

1.	As an employer, if I operate a retirement scheme, am I required to apply for a certificate of exemption or registration under the Occupational Retirement Schemes Ordinance ("the ORSO")?
	Answer:	Employers who operate retirement schemes that fall under the ambit of the ORSO and meet the definition of an "occupational retirement scheme" in the ORSO are required to apply to the MPFA for registration or exemption of their schemes. The ORSO is the governing legislation for the regulation of voluntary occupational retirement schemes operating in or from Hong Kong. Its aim is to regulate retirement schemes through a registration system to ensure that all voluntarily established occupational retirement schemes are properly administered and funded, and to provide greater certainty that retirement scheme benefits promised to employees will be paid when they fall due. The ORSO has a wide scope and applies to all schemes operated in and from Hong Kong. Offshore schemes (i.e. schemes whose domicile is outside Hong Kong and which is or whose trust is governed by a foreign system of law) providing benefits to members employed in Hong Kong are also covered. Please refer to Occupational Retirement Schemes for details.
2.	For an ORSO scheme that has been granted an MPF exemption certificate, what is the relevant governing legislation, in addition to the Occupational Retirement Schemes Ordinance ("the ORSO")?
	Answer:	MPF exempted ORSO schemes are governed by the Mandatory Provident Fund Schemes (Exemption) Regulation ("the Regulation") in addition to the ORSO. The Regulation sets out in detail the arrangements for the interface of ORSO schemes and MPF schemes, and specifies the circumstances for the exemption of ORSO schemes from MPF requirements. It also stipulates, in relation to ORSO schemes that have successfully applied for MPF exemption, the mandatory conditions which the members, employers and administrators of the relevant ORSO schemes are subject to, as well as the provisions applicable to the ORSO schemes' trustees, directors of the trustees, and appointed persons managing the investment of the assets. The Regulation stipulates that the benefits of new members (i.e. new eligible employees who became members of an MPF exempted ORSO scheme after 1 December 2000) accrued under an MPF exempted ORSO registered scheme are subject to the preservation, portability and withdrawal requirements of the Regulation up to an amount equivalent to the "minimum MPF benefits" ("the MMB"). On the other hand, although those MMB requirements do not apply to existing members (i.e. relevant employees who became a member of the MPF exempted ORSO scheme before or on 1 December 2000), the trustee cannot forfeit the members' accrued benefits up to an amount equivalent to the MMB upon dismissal for cause. Please refer to the Mandatory Provident Fund Schemes (Exemption) Regulation for details.