MPF Employers, Scheme Members and Self-Employed Persons
If the employer fails to pay the mandatory contributions on time, MPF trustee is required to report the default to MPFA. Based on the report, MPFA will issue the “Payment Notice for MPF Contributions and Surcharge” to recover the default contributions and a surcharge, calculated at 5% of the default amount. If the employer fails to rectify the default contributions, MPFA may impose a financial penalty on the employer or initiate legal proceedings to recover the default contributions and surcharge on behalf of the affected employee.
Employee should first clarify with the employer or MPF trustee to see if it is a genuine default contribution. If default contribution is confirmed, the employee should lodge a complaint with MPFA as soon as possible. For more information, please refer to the “Complaints against Employers” .
If the employer has become liquidated or bankrupted, the employee may lodge a complaint with MPFA and provide relevant information. MPFA will file claims with the Insolvency Officer or liquidator to recover the default contributions on behalf of the employee. If any payments are received from the liquidator, MPFA will pay the amount to the MPF trustee for allocation to the relevant employees' MPF accounts.
Voluntary contributions are voluntary arrangement between the employer and employee, not employers’ obligations under MPFSO. Therefore, the statutory functions of MPFA do not cover the recovery of voluntary contributions in arrears on behalf of scheme members.
If a person is no longer self-employed, he/she should notify the MPF trustee as soon as possible to cease the self-employed person’s account and check whether there are outstanding contributions and surcharges. If so, the default contributions and surcharge must be settled immediately.
Scheme members should not be instigated by crime syndicates to make false declarations. Making false declaration is a criminal offence, and will be sentenced to imprisonment or fine. Be vigilant against unsolicited calls and do not disclose any personal information to any unknown third party.
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ORSO Employers and Administrators
The enforcement powers under sections 66C and 66D of the amended ORSO allow the Registrar to:
- investigate into suspected non-compliance with statutory requirements
- require any person to provide information and assistance
- require any person to attend an interview and answer questions
If there is any substantiated non-compliance, the Registrar would take appropriate enforcement actions.
According to section 66E of the amended ORSO, a person commits an offence if the person fails to comply with investigation requirements without reasonable excuse (or with intent to defraud).
The maximum penalties are :
- a fine at level 6 and imprisonment for six months on summary conviction; or
- a fine of $1,000,000 and imprisonment for seven years on conviction on indictment.
We attach great importance to complaints lodged by the public and take this opportunity to regulate MPF trustees’ conduct and their compliance.
However, please note that the MPFA cannot interfere with MPF trustees’ commercial decisions, adjudicate on disputes between MPF trustees and scheme members/participating employers or order compensations from MPF trustees.
The MPFA will conduct an initial assessment of all the materials provided by the complainant. If the complaint falls within the MPFA’s jurisdiction, having considered the nature and the content of the complaint, the MPFA will handle the complaint according to the established procedures, including making initial contact with the complainant by phone or in writing within seven working days from the date of receiving the complaint, reviewing the information obtained and making contact with all related parties (including the complainant and the related MPF trustee) in order to follow up the complaint. We will notify the complainant of the outcome upon completion of the case.
If the complaint relates to statutory requirements, we will follow up with the MPF trustees on whether they have acted in accordance with the relevant requirements.
The performances of MPF funds and the fund prices are determined by the market which is beyond the control of the MPFA.
Nevertheless, the MPFA has been driving competition in the industry through various means, such as launching the fee capped “Default Investment Strategy” and the “MPF Fund Platform”, with an aim to enhancing the performance of MPF trustees and MPF constituent funds for the benefits of scheme members.
We encourage all scheme members to make their own MPF fund choices according to their investment objectives and risk tolerance levels.
If a scheme member does not provide the MPF trustee with his fund choices, the contributions of a scheme member will be invested according to the Default Investment Strategy (DIS). DIS is an investment strategy which balances the risks and returns considering the need of average MPF scheme members. All MPF schemes are required by law to offer the DIS.
For more information, you may refer to the following link
MPF trustee will provide a scheme member with a notice of participation (Notice) to confirm his enrolment. The Notice should list out, among others, the name of the MPF scheme, the name and address of the MPF trustee, scheme member’s name and the issuance date of the Notice.
Furthermore, an MPF trustee is also required to provide a scheme member with an annual benefit statement stating the MPF account details, such as fund portfolio and account balances at the end of each financial period of the scheme.
MPF trustee would appoint service providers to offer services for the purposes of the scheme. Unless an MPF trustee can meet the criteria for acting as a custodian, it has to appoint a custodian to take care of MPF scheme assets and also engage an independent investment manager to manage the investment of the funds under MPF scheme.
MPF trustee may also engage scheme administrators to act on its behalf to handle the daily administration work of MPF schemes.
Under section 43(f) of Mandatory Provident Fund Schemes (General) Regulation, MPF trustees have the duty to supervise and exercise proper control over all service providers appointed or engaged for the purposes of the schemes.
Under Employee Choice Arrangement (ECA), a scheme member is allowed to transfer his accrued benefits derived from the employee’s mandatory contributions in his contribution account to another MPF scheme of his choice. The ECA transfer can only be made once in every calendar year and it takes around 30 days for a MPF trustee to process the ECA transfer request.
Please note that the accrued benefits derived from employer’s mandatory contributions in the contribution account are not transferrable under the ECA arrangement.
For more information, you may refer to the following link
Unless the member is self-employed, the former employer of the scheme member is required to notify the MPF trustee of his existing MPF scheme the cessation of the employment. Upon the notification, the MPF trustee is required to inform the scheme member the options for transferring his accrued benefits under the existing MPF scheme. In general, the scheme member can choose to:
(i) transfer his accrued benefits to a contribution account under the MPF scheme of his new employer;
(ii) retain his accrued benefits in a personal account under the original MPF scheme; or
(iii) transfer his accrued benefits to his existing personal account under another MPF scheme if he has any.
Scheme member should complete the form “Scheme Member’s Request for Fund Transfer Form” (Form MPF(S)-P(M)) and submit it to the new MPF trustee for process. The form can be downloaded from the MPFA website or obtained from their new MPF trustee.
The original MPF trustee will, within 30 days after being notified of the scheme member’s transfer option, arrange the transfer of the accrued benefits to the new MPF trustee of their choice. Once the transfer is completed, the new MPF trustee will send scheme member a Transfer Confirmation stating, among others, the amount of accrued benefits transferred to the personal account under the new MPF scheme.
MPFA will make an initial assessment of all the information provided by the complainant. If the complaint involves MPF sales and marketing activities, it will be handled according to established procedures and MPFA will contact the complainant within seven working days after the complaint to request for case information, etc.
If the information reveals that the relevant intermediaries may be in breach of conduct requirements, MPFA will refer the case to the relevant frontline regulators (FRs), who will consider whether it is necessary to initiate investigation against the relevant intermediaries. After the FRs completes the investigation, MPFA will consider the information obtained by FRs (including the representation made by the intermediaries) and decide on the appropriate actions, such as a disciplinary order.
MPFA attaches great importance to complaints and regulates the conduct and compliance of intermediaries to protect the rights of scheme members or employers.
However, MPFA cannot interfere with the commercial decisions of the intermediaries, intervene in matters relating purely to service quality and are unrelated to MPF sales and marketing activities, or order intermediaries to pay compensations for disputes between intermediaries and scheme members.
If a scheme member believes that an MPF intermediary has not complied with the conduct requirements, or suspects an unregistered intermediary is conducting unregistered sales or marketing activities, the member can file a complaint with MPFA by mail, telephone, fax, email, or in person.
Post: Member Protection and Services Division, MPFA, Level 12, Tower 1, The Millennity, 98 How Ming Street, Kwun Tong, Hong Kong
Hotline: 2918 0102
Fax: 2259 8806
If members of the public need to visit the MPFA office in person (e.g. for submitting documents), please call our hotline (2918 0102) to make an appointment in advance.
- suspension or revocation of registration;
- disqualification from registration;
- public or private reprimand;
- pecuniary penalty (a maximum fine of $10 million or three times the profit gained as a result of the failure, whichever is higher.
MPFA does not have statutory power to request an intermediary compensate a scheme member for MPF investment loss.