Bankruptcy of Members

The treatment of a bankrupt member’s vested benefits under ORSO schemes will depend on the terms of the governing rules, including the forfeiture clause or bankruptcy clause (if any), the terms of the employment and other relevant circumstances of the case.

As advised by the Official Receiver’s Office (“ORO”), the administrator of an ORSO scheme must:

1. give prior notice to the ORO for the transfer of benefits vested to a bankrupt member from an ORSO scheme to another scheme even though no payment of benefits is proposed; and
2. obtain prior consent from the ORO in respect of any proposed payment of benefits to a bankrupt member, including offsetting of long service payments / severance payments.