MPF for employees

Under MPF legislation, employers must select an MPF service provider and enrol their employees in an MPF scheme. Both employers and employees make regular contributions into an employee's account, with benefits payable at retirement or under special circumstances.

This includes wages, salaries, leave pay, housing allowances, housing benefits, fees, commissions, bonuses, gratuities, perquisites, or allowances expressed in monetary terms, paid or payable by an employer (directly or indirectly) to you, and in consideration of your employment contract, but excluding long service payments or severance payments.

² With effect from 1 November 2013

³ With effect from 1 June 2014

Employee Choice Arrangement (ECA) allows employees to transfer accrued benefits attributable to employee mandatory contributions made under their current employment (but not employer's mandatory contribution), to a personal account with an MPF provider of their choice once a calendar year.

Under the ECA, employees can also transfer any accrued benefits from previous employment or self-employment that have been transferred to a contribution account in a current employer's MPF scheme. These accrued benefits can be transferred in lump sum to an MPF scheme of the employee's choice at any time.

Employers may set up an employee benefits programme with both employers and employees making additional voluntary contributions to an MPF scheme. Employees' additional voluntary contributions are deducted from their salary and paid together with the mandatory contributions through the employer. Additional voluntary contributions made under these circumstances are contractual arrangements and categorised as voluntary contributions.

Regardless of whether employers have set up an employee benefits programme, employees can ask to make voluntary contributions by deductions from their salary through their employer. However, if there's a contractual arrangement as above, any additional contributions made via their employer will require the employer's consent for withdrawal.

Remarks 

Additional voluntary contributions are accepted at the discretion of the Trustee. The Trustee reserves the absolute right not to accept any additional voluntary contributions at any time.

Flexi-Contributions are a straightforward and private way for employees to make additional contributions to build the retirement funds. We offer you total control and flexibility to make additional contributions regularly. Benefits of Flexi-Contributions include:

• Total control - You make contributions at your own pace. The service is private and independent of your employer.
• Flexible and convenient payment - You can make monthly regular contributions from as little as HKD300 by direct debit, or simply pay a sum of HKD1,000 or more at the time of your choice.
• Simple and easy application - All contributions under your MPF account will be invested in the same choice of funds for hassle-free investing.
• Flexible management - You can change your Flexi-Contributions at any time or even withdraw your accumulated amount free of charge. This is subject to a minimum of HKD5,000 per withdrawal up to 12 times in a scheme financial period (from 1 July to 30 June next year).

To make regular Flexi-Contributions, just download and complete the Flexi-Contributions Application Form (INPC). To amend your instructions, complete the Change of Regular Flexi-Contributions Instruction Form (INPA). Call our service hotline at +852 3128 0128 if you have any questions.

Tax deductible voluntary contributions can help you to meet the long-term saving objective for retirement protection and enjoy tax concession in accordance with the Inland Revenue Ordinance. Click here to learn more about Tax Deductible Voluntary Contributions.

Remarks:

Tax deductible voluntary contributions is accepted at the discretion of the Trustee. The Trustee reserves the absolute right not to accept tax deductible voluntary contributions at any time.

As your circumstances change over time, you may decide to change the way your investments are allocated in your MPF account. There are 4 ways to do this: portfolio rebalance^**, asset switch, contribution redirection and exiting the Default Investment Strategy (DIS).

Your investment allocation will apply to all types of contributions, including mandatory, voluntary, Flexi-Contributions and tax deductible voluntary contributions together with any accrued benefits transferred from another scheme. Change of investment allocation is applied at account level. For example, if you hold 2 accounts with HSBC MPF and would like to rebalance your portfolio for both accounts, you'll need to give instructions for both accounts separately.

If such changes apply to the members' existing investments, different dealing cut-off times may apply to valid instructions received through different service channels:

1. Investment option form - within 5 business days after the date of receipt of the valid instruction will be used as the date of fund price for fund dealing if such valid instruction is received on a business day;
2. Designated service channels, e.g. our website or Interactive Voice Response System (IVRS) - date of receipt of the valid instruction will be used as the date of fund price for fund dealing if such valid instruction is received by 4pm on a business day. Members should read the disclosures on different service channels carefully before giving instructions.

Fees and charges of an MPF Conservative Fund can be deducted from either:

(i) The assets of the MPF Conservative Fund or

(ii) Members' account by way of unit deduction.

The MPF Conservative Fund under the HSBC Mandatory Provident Fund – SuperTrust Plus uses method (i) and, therefore, its unit prices, net asset value (NAV) and fund performance quoted have reflected the impact of fees and charges.

** Change the investment allocation of your existing investments, future contributions and accrued benefits transferred from another registered scheme.

Our MPF scheme is designed to suit your changing needs.

For the HSBC Mandatory Provident Fund – SuperTrust Plus, there's no limit to the number of fund switches that can be carried out per year, and there are no handling fees.

However, as the objective of MPF is to save for retirement, your investment objectives should be longer term, dependent on your personal circumstances.

Under MPF legislation, you need to preserve your accrued benefits derived from mandatory contributions when you change jobs. You can transfer your accrued benefits accumulated from your previous employment to a personal account with us, or transfer your accrued benefits to your new employer's MPF scheme or another scheme of your choice.

An HSBC MPF personal account is an individual account held in your own name to preserve your accrued benefits. Keeping your MPF in one place makes it easy to manage your account.

If you're joining HSBC MPF from another provider, transferring your accrued benefits is easy. Just complete and submit the 'Scheme Member's Request for Fund Transfer Form' (INPM) and 'Personal Account Holder Application Form' (IN81) to allow us to set up a personal account for you, and we'll ask your existing MPF service provider to transfer your accrued benefits to us.

Remember, with MPF, you need to think of the long-term benefits. Our track record in retirement fund management and comprehensive approach make us a front-runner in MPF provision.

You may withdraw your accrued benefits derived from mandatory contributions under the following circumstances:

1. At the age of 65
   
2. Death (to be paid to your legal personal representative)
3. Total incapacity
4. Terminal illness
5. Early retirement between the ages of 60 and 64
6. Permanent departure from Hong Kong SAR
7. Small balance

With effect from 1 February 2016, you can withdraw your accrued benefits in one go or in instalments on the grounds of retirement at the age of 65 or early retirement at the age of 60.

Use the Chinese version of the declaration form if you would read the jurat in Chinese.

*** Supporting documentation for claiming accrued benefits by committee of estate on behalf of a mentally incapacitated scheme member.