Automatic Exchange of Financial Account Information

1. When to implement the Automatic Exchange of Financial Account Information (“AEOI”) for MPF Schemes and ORSO Registered Schemes?

   Starting from 1 January 2020, AEOI relating to MPF schemes and ORSO registered schemes effected under the Inland Revenue (Amendment) (No.2) Ordinance 2019 (the “Amendment Ordinance”).

   Under the Amendment Ordinance, MPF schemes and ORSO registered schemes are required to comply with the due diligence and reporting obligations relating to the AEOI. Hence, a complete self-certification is required from account holder for all new MPF and ORSO accounts opened on or after 1 January 2020 to verify scheme member’s tax residency. Otherwise, the relevant account opening process could not be completed.

   For details of AEOI, please click here to read the AEOI Overview from the Hong Kong Trustees' Association or click here to visit Inland Revenue Department’s AEOI website.

2. Where can I find the meaning of the terms and expressions used in Self-Certification Forms?

   Please click here for more information.

Employment Support Scheme

1. Employment Support Scheme

   The Hong Kong Special Administrative Region Government has launched the 2022 Employment Support Scheme (“ESS”) under the Anti-epidemic Fund to provide wage subsidies to employees for three months (i.e. May, June and July 2022) to retain their current employees or even employ more staff when the business revives as soon as the epidemic situation permits. Eligible self-employed persons can also apply for a one-off subsidy.

   The application period of the Scheme is from 29 April 2022 at 8:00 am to 12 May 2022 at 11:59 pm.

   For enquiries, please email enquiry@ess.gov.hk or if applicants would like to seek help from dedicated staff, they may schedule an appointment through ESS hotline (1836-122). Service hours during the application period (29 April to 12 May 2022): 9 a.m. to 6 p.m.

   To learn more about the ESS, you may visit Employment Support Scheme website: https://www.ess.gov.hk .

Employers

1. How should I arrange for employees to enrol in an MPF schemes?

   Except for exempt persons, you should enrol both full-time and part-time employees who are at least 18 but under 65 years of age in an MPF scheme within the first 60 days of employment.

2. I have some employees who are hired from overseas to work in Hong Kong, do they need to join in an MPF scheme?

   If the expatriates are given permission by the Government of the HKSAR to stay in Hong Kong for employment, and they are non-permanent residents from overseas who enter Hong Kong for the purposes of employment for less than 13 months, or who are covered by overseas retirement schemes, they are exempt from joining an MPF scheme.

3. How to calculate mandatory contributions? What is “Contribution Date”?

   Mandatory contributions are calculated based on the relevant income of the employee. Relevant Income includes wages, salaries, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance or other housing benefits), but excludes severance payments or long service payments. Both employer and employee must each contribute 5% of the employee's relevant income, subject to the minimum and maximum relevant income levels.

   “Contribution Day” means the 10th calendar day after the last day of the calendar month within which the relevant contribution period ends.

4. What should I do if my employee ceases employment?

   Within 10 days after the last day of the calendar month in which the employee ceases employment, you are responsible to send a written notice to your MPF scheme trustee reporting the last employment date and termination reason. You must also make the last MPF contributions for the terminated employee.

5. How to apply offsetting of Long Service Payment/Severance Payment (LSP/SP)?

   Employers should pay the long service payment/severance payment to the relevant employees in comply with the Employment Ordinance. By law, employers can offset the LSP/SP paid to your employees with the accrued benefits derived from the employer’s contributions. Hence, you may submit the following documents to BOCI-Prudential Trustee:-

   • “Remittance Statement” which clearly states the last employment date, last contribution amount, termination reason and request for refund of LSP/SP; and
   • “Receipt of Long Service Payment (LSP)/Severance Payment (SP)” [FORM LSP/SP REFUND](for Easy-Choice MPF) or [MY LSP/SP RECEIPT] (for My Choice MPF) which signed by the employee.

Employee Members

1. I am a part-time employee, am I covered by the MPF System?

   If you have been employed for a continuous period of 60 days or more, your employer is required to enrol you in an MPF scheme.

2. Would my commission or bonus giving from the company be counted as relevant income? If yes, how should I make contributions in respect of the commission or bonus?

   Commission or bonus shall be counted as relevant income. Employee and employer are each required to make the contributions calculated at 5% of the employee’s relevant income, subject to the minimum and maximum relevant income levels. The relevant income refers to all monetary payments paid or payable by an employer to an employee, including wages, salary, leave pay, fees, commissions, bonuses, gratuities, perquisites or allowances, but excluding severance payments or long service payments.

3. Is there a limit to the number of fund switching that can be carried out per year? Any handling fees for each instruction?

   No, there is no limit and handling fee for fund switching instruction each year.

4. How can I check my MPF account balance?

   You can check your account balance through the following channels:

   1. Login your online account through internet, smart phone or tablet apps
   2. Call BOCI-Prudential Hotline on 2929 3030 (Easy-Choice MPF) or 2929 3366 (My Choice MPF)
   3. Use your ATM card or credit card to check your MPF balance at BOC (HK) / JETCO ATM network
   4. The annual benefit statement issued to you each year

5. Can I withdraw my accrued benefits in an MPF scheme if I am unemployment?

   As a scheme member, you are not allowed to withdraw your accrued benefits until you reach the age of 65. Early withdrawal is only allowed under the following specific circumstances:

   • early retirement at age 60 or above;
   • permanent departure from Hong Kong;
   • total incapacity;
   • terminal illness;
   • a small balance of $5,000 or less; or
   • death.

Self-Employed Persons

1. I am a taxi driver. Do I need to enrol myself in an MPF scheme?

   If you have entered into a contract for service but are not an employee of that company, you may be regarded as a self-employed person. You are therefore required to enrol yourself into an MPF scheme as a self-employed person and make contributions.

   If you have entered into a contract of employment with the company and have been employed as an employee for 60 days, the employer is required to enrol you into an MPF scheme and make contributions for you accordingly.

2. Do I need to contribute if I do not earn much money?

   Regardless of the size of your business profits, you must enrol into an MPF scheme if you are a self-employed person between the ages of 18 and 65. However, you are not required to make mandatory contributions to the MPF scheme if your relevant income is less than the minimum relevant income level or if you sustain a net loss in relation to your business.

3. If I am a member in a partnership, how should I calculate my relevant income?

   Your relevant income for the financial year of the scheme should be calculated by making proportional adjustments according to your share of the partnership and the business’s profits for that period.

4. What should I do if I cease to be self-employed during a scheme's financial year?

   Your mandatory contribution should be recalculated, adjusting the amount you would have paid for the whole contribution period by the number of days you were self-employed during the period. You should also notify your scheme trustee of the cessation of self-employment status before the next contribution period.

5. Can I withdraw my MPF accrued benefits anytime?

   No. You can only withdraw your MPF accrued benefits under the following circumstances:

   • reach age 65;
   • early retirement at age 60 or above;
   • permanent departure from Hong Kong;
   • total incapacity;
   • terminal illness;
   • a small balance of $5,000 or less; or
   • death.

Personal Account Holders

1. What is a MPF Personal Account?

   A MPF Personal Account is an account that preserves your MPF accrued benefits derived from your former employment or self-employment. New contributions to this account are generally not accepted, though the accrued benefits will continue to be invested according to your instructions, and thus fees and charges may still be incurred.

2. I have multiple personal accounts, how to consolidate them into BOC-Prudential?

   You only need to fill in a "Scheme Member's Request for Account Consolidation Form" [MPF(S) - P(C)] and submit to BOC-Prudential if you already have a personal account under BOC-Prudential. You can consolidate all personal accounts into one at a time.

3. If I have only a personal account, will a member benefit statement be sent to me?

   Yes. We will send the member annual benefit statement to you as long as you remain as our scheme member as at scheme financial year end, i.e. 31 March of each year.

4. Can I change my investment portfolio anytime?

   Yes. You can change your investment portfolio anytime unlimitedly without any fund-switching handling fee via internet, mobile app, interactive voice response system (IVRS) or by submitting the relevant form by fax or post.

5. Can I make Special Voluntary Contributions?

   Yes. Regular special voluntary contribution can be made by any employee members, self-employed persons or personal account members on a monthly basis by autopay from his/her own bank account or other methods as agreed by the Trustee.