Statutory Requirements for Exemption

When employees who joined an ORSO scheme after 1 December 2000 (i.e. new members) leave their employment, their minimum MPF benefits (MMB) (note: please refer to the calculation method below) must be calculated and transferred from the ORSO scheme to:

  1. an MPF scheme in which the member’s new employer is a participating employer; or
  2. an MPF scheme nominated by the member that accepts transfer of MMB.


If there are funds remained after the transfer, employees can withdraw them according to the governing rules of individual ORSO schemes. MMB can only be withdrawn when the employee meets the withdrawal requirements as set out in the MPF legislation.


Existing members of MPF exempted ORSO registered schemes (i.e. employees who joined an ORSO scheme on or before 1 December 2000) are exempt from the preservation, portability and withdrawal requirements of benefits. Trustees cannot forfeit the MMB of employees who have been dismissed for cause.

Calculation Method


MMB is defined as the lesser of two amounts calculated by the following methods:


  1. The member's benefits accrued and held under the ORSO scheme during the course of employment, i.e. benefits derived from employee’s contributions, plus the benefits derived from employer’s contributions under the vesting scale; or
  2. Final average monthly relevant income (capped at $20,000 on or before 31 May 2012 / $25,000 from 1 June 2012 to 31 May 2014 (both days inclusive) / $30,000 on or after 1 June 2014) × years of post-MPF service × 1.2.


For details, please refer to Guidelines on MPF Exempted ORSO Schemes – Preservation of Benefits .