Contribution Requirements

Contribution requirements (including contribution rate and contribution due date) are determined by the employer. The employer is required to make contributions in respect of the scheme member on or before the contribution due date in accordance with the governing rules of the scheme.

1. Contribution

   
   Contributions can be made solely by the employer, or by both the employer and the scheme member based on the terms of the scheme and (where the scheme is a defined benefit scheme) the recommendation, if any, contained in the actuarial certificate.

2. Determination of Contribution Due Date

   *applicable to MPF exempted ORSO registered schemes only ("relevant scheme")

   
   If the contribution requirements of a relevant scheme have specified the date on which the relevant employer is to pay a contribution, the due date for that contribution shall be the date so specified.

   
   If the contribution requirements of a relevant scheme have not specified the date on which the relevant employer is to pay a contribution, the due date for the contribution for each relevant period shall be -

   
   
   1. a day within a month next following the expiration of the relevant period (i.e. the period in which the contribution is required to be paid under the scheme’s contribution requirements), as specified in a statement sent by the relevant employer to the designated person; or
   2. if not so specified, the 10th day after the relevant period.
   
   

3. Imposition of Contribution Surcharge and Recovery of Arrears

   *applicable to MPF exempted ORSO registered schemes only

   
   If a relevant employer fails to pay the contribution before the contribution due date, the MPFA will issue a first payment notice.

   
   Where the relevant employer fails to heed the MPFA’s first payment notice and pay the arrears within the period specified, the MPFA may:

   
   
   1. in the second payment notice, require the relevant employer to pay a contribution surcharge of 15% per annum on the amount of the arrears, accruing from the day following the due date until the last day of the period specified for payment in that second payment notice; and
   2. in the third or any subsequent payment notice, require the relevant employer to pay a contribution surcharge of 20% per annum on the amount of the arrears, accruing from the day following the due date until the last day of the period specified for payment in that third or subsequent payment notice.

   
   Any contribution surcharge collected shall be distributed among the affected members as if they were investment returns earned on the contribution.

   
   If the relevant employer still fails to settle the outstanding contribution and surcharge, the MPFA may institute legal proceedings against the relevant employer for the recovery of the outstanding contribution and surcharge.