The world's local bank
News
- Guaranteed Interest Rate announcement for the new scheme year (2 July 2008)
- Update on HSBC Mandatory Provident Fund 'Principal Brochure' (2 June 2008)
- Removing the special treatment on excluding housing allowance and other housing benefit from 'relevant income' (29 May 2008)
- Revised guidelines on unclaimed benefits (29 May 2008)
- Enrolment and contribution requirements for persons who cease to be exempt from MPF legislation (30 April 2008)
- Removal of the 30-day settlement period for making MPF contributions (30 April 2008)
- Revised guidelines on claims for payment of accrued benefits on the ground of permanent departure (30 April 2008)
- Revised guidelines on claims on the ground of small balance (30 April 2008)
- Notice of Cessation of Employment by Employees to Approved Trustees (27 March 2008)
- Re-publication of Invitation for Lodgement of Claims for Payment of Accrued Benefits (Section 170(2) of the Mandatory Provident Fund Schemes (General) Regulation) (27 March 2008)
- Mailing address for HSBC MPF correspondence (25 March 2008)
- Invitation for Lodgement of Claims for Payment of Accrued Benefits (Section 170 of the Mandatory Provident Fund Schemes (General) Regulation) (20 December 2007)
- Invitation for Lodgement of Claims for Benefits (Section 172(10) of the Mandatory Provident Fund Schemes (General) Regulation) (20 December 2007)
- Amendment to MPF Fund Names and Investment Objectives - Asian Equity Fund and Hong Kong Equity Fund (1 November 2007)
- Update on HSBC Mandatory Provident Fund 'Principal Brochure' (31 October 2007)
- A better world with the HSBC MPF (24 September 2007)
- Guaranteed Interest Rate announcement for the new scheme year (29 June 2007)
- Our new MPF member online service (26 June 2007)
- Treatment of MPF Accrued Benefits Transfer (7 May 2007)
- Update on HSBC Mandatory Provident Fund 'Principal Brochure' (29 December 2006)
- Check your MPF accounts regularly (9 November 2006)
- MPFA steps up enforcement to better protect employees (9 November 2006)
- Claiming accrued benefits (24 August 2006)
- Guaranteed Interest Rate announcement for the new scheme year (19 June 2006)
- Your Security Device - in the forefront of online personal protection (13 March 2006)
- Personal Contributions service for preserved account holders (23 February 2006)
- Revised guidelines on claims for payment of accrued benefits (14 February 2006)
- MPF Principal Brochure Update (30 December 2005)
- MPFA takes action against default contribution cases (13 September 2005)
- Guaranteed Interest Rate announcement for the new scheme year (27 May 2005)
- Requesting refunds for Long Service Payments or Severance Payments (30 December 2004)
- Revised guidelines on the calculation of mandatory contributions for employees who attain the age of 65 (6 August 2004)
- MPFA takes action to remind employers to settle outstanding contribution discrepancies (16 June 2004)
- MPFA takes action to remind self-employed persons to settle outstanding contributions (16 June 2004)
- Reminder of tax implications (21 May 2004)
- Late payments will be reported to the MPFA (21 May 2004)
- Save your time when claiming refunds (8 January 2004)
- Administration tips for the Self-Employed (28 October 2003)
- Full launch of Business Internet Banking MPF Service (23 June 2003)
- MPFA to crack down on late payments (30 April 2003)
- Contribution for expatriates after the implementation of MPF legislative amendments (29 March 2003)
- Reporting employee termination on Remittance Statements (29 March 2003)
- Summary of the major legislative amendments which have taken effect from 1 February 2003 (19 February 2003)
Guaranteed Interest Rate announcement for the new scheme year (2 July 2008)
The Guaranteed Interest Rate for our MPF Guaranteed Fund offered under SuperTrust and SuperTrust Plus will remain at 0.25% per annum, from 1 July 2008 to 30 June 2009.
Provided the Guarantee Conditions are met, this is the minimum return that your employees will receive. Your employees will receive the higher of the actual investment return or the accumulated guaranteed return when payment is made. The Guarantee Conditions remain unchanged and are stated in the Principal Brochure.
Update on HSBC Mandatory Provident Fund 'Principal Brochure' (2 June 2008)
Important: If you are in any doubt about the content of this note, you should seek independent professional advice
We are writing to provide you updated information about the 'Principal Brochure' as follows:
Name change of Investment Manager and Investment Adviser
With effect from 2 June 2008, the name of Investment Manager and Investment Adviser is renamed from HSBC Investments (Hong Kong) Limited to HSBC Global Asset Management (Hong Kong) Limited.
MPF Principal Brochure Update
The Principal Brochure for HSBC MPF SuperTrust and SuperTrust Plus has been updated to reflect a number of changes which members have been notified of previously:
- The introduction of a Multi-Manager approach for the investment of the selected underlying pooled investment funds, a new structure that uses the specialized expertise of acclaimed third-party fund managers. Moreover, Sinopia Asset Management (UK) Limited was appointed as an additional Investment Adviser for the insurance policy of the Guaranteed Fund with effect from 29 October 2007.
- With effect from 1 November 2007, the rates of Management Fees for selected constituent funds have been revised which would bring more benefits to members. Further, the name of the 'Asian Equity Fund' and 'Hong Kong Equity Fund' have also been revised as 'Asia Pacific Equity Fund' and 'Hong Kong and Chinese Equity Fund' respectively. The investment objective of these two equity funds has also been revised accordingly.
Other updates, which include investment risks, latest weightings of the constituent stocks of Hang Seng Index, on-going cost illustrations and illustrative example for the Capital Preservation Fund, have also been made in the Principal Brochure.
The updated 'Principal Brochure' is now available for download here. Hard copies are also available on request from our enquiry hotlines. For further enquiries, please contact HSBC MPF Employer Hotline (852) 2583 8033 or HSBC MPF Member Hotline (852) 3128 0128.
HSBC Provident Fund Trustee (Hong Kong) Limited, has been informed of, and has approved, the proposed amendments, in the capacity as the trustee of the HSBC Mandatory Provident Fund.
HSBC Provident Fund Trustee (Hong Kong) Limited
Notes: Investment involves risk. Past performance is no guide to future performance. Please refer to the 'Principal Brochure' for details.
Removing the special treatment on excluding housing allowance and other housing benefit from 'relevant income' (29 May 2008)
To prevent employers from evading their responsibilities to pay MPF contributions or reducing the amount of MPF contributions payable by deliberately labelling a portion of the salary of their employees as housing allowance, the Legislative Council at its third reading on 9 January 2008 passed the legislative amendment to remove the special treatment on excluding housing allowance and other housing benefit from the definition of 'relevant income'. Following the passage of the amendment, housing allowance and other housing benefit will be treated on the same basis as other remuneration items and any such item will be included in calculating MPF contributions if it satisfies the criteria for "relevant income".
The Mandatory Provident Fund Schemes Authority (MPFA) reminds all employers that, in the light of the legislative amendment regarding housing allowance, employers should pay attention as below:
- consider making necessary amendments to the payroll system and other remuneration systems, and review the arrangements on granting housing allowance and housing benefit to employees, so as to avoid breaching the legislation;
- explain to employees that the amount of employee MPF contributions to be deducted from their monthly salary may change following the legislative amendment to include housing allowance as part of their relevant income;
- notify the trustees of the amount of relevant income of employees and pay the correct amount of monthly MPF contributions to the trustees on time;
- discuss and agree with employees on any necessary amendment of terms and conditions of employment contracts and retirement benefit arrangements; and
- record the amount of employees' relevant income and the amount of contributions accurately.
For details, please visit the MPFA's website.
Revised guidelines on unclaimed benefits (29 May 2008)
On the premise that the interests of scheme members would not be affected, the amendment will shorten the period for trustees to report unclaimed benefits information to the MPFA and to streamline the procedures in handling unclaimed benefits. The amendment will also enable the Mandatory Provident Fund Authority (MPFA) to update the unclaimed benefits register quarterly for scheme member's reference.
The amendment set out clearly the timeframe for accrued benefits to become unclaimed benefits and will remove the requirement for trustees to publish newspaper notices to locate untraceable scheme members. On the other hand, trustees are required to update the MPFA on unclaimed benefits information every quarter. For scheme members who have reached the retirement age and would like to retain their accrued benefits within the scheme, they will only need to elect their choice once. Their accrued benefits will then be retained within the scheme if they have not made a claim for payment.
Scheme members are reminded to update trustee on any change of their correspondence address as trustee is obliged to pay all unclaimed benefits into court when the accrued benefits remain unclaimed for 6 years commencing from the date the right to payment first arose. For details, please visit the MPFA's website.
Enrolment and contribution requirements for persons who cease to be exempt from MPF legislation (30 April 2008)
According to the Mandatory Provident Fund Schemes (Amendment) Ordinance 2008 gazetted on 18 January 2008:
When an exempt employee subsequently changes status to become a non-exempt person (e.g. a person under 18 years old when the employment begins, a person who ceases to be a member of an MPF-exempted ORSO scheme), his/her employer should enroll the eligible employee in an MPF Scheme in accordance with the MPF Schemes Ordinance as if his/her employment began on the first day he/she ceases to be exempted. Such arrangements also apply to self-employed person. For details, please visit the MPFA's website.
Example:
Assumption: Contribution period based on calendar month (starting from the first day to the end of each month)
| Employee A started working on | 15 December 2007 |
| Employee A becomes 18 on | 2 April 2008 |
| 60th day of employment as calculated according to the relevant MPF legislation | 31 May 2008 |
| Action to be taken by employer | Enroll the employee into MPF scheme on or before 31 May 2008 |
| Employer's mandatory contributions should commence on | 2 April 2008
(i.e. the first day of Employee A becomes 18) |
| Employee's mandatory contributions should commence on | 1 June 2008
(i.e. the first day of the next payroll period following the 30-day contribution holiday which ends on 1 May 2008) |
Removal of the 30-day settlement period for making MPF contributions (30 April 2008)
In order to streamline the MPF contributions processing so as to enhance the efficiency and effectiveness of the existing mechanism for recovering default contributions, the Legislative Council passed at its third reading on 9 January 2008 the legislative amendment on the removal of the 30-day settlement period covered in the Mandatory Provident Fund Schemes (Amendment) Bill 2007.
The Mandatory Provident Fund Schemes Authority (MPFA) reminds employers and self-employed persons to take note of the changes brought about by the legislative amendment of removing the 30-day settlement period immediately following the contribution day. When an employer or self-employed person fails to pay mandatory contributions by the contribution day, the trustee will no longer need to issue a reminder urging the employer or self-employed person to settle the outstanding contributions. Instead, the trustee will report the default contribution case to the MPFA. For more details, please visit the MPFA's website.
Revised guidelines on claims for payment of accrued benefits on the ground of permanent departure (30 April 2008)
According to the Mandatory Provident Fund Schemes (Amendment) Ordinance 2008 gazetted on 18 January 2008:
When a scheme member applies for withdrawal of MPF accrued benefits on the ground of permanent departure from the Hong Kong SAR, he/she will no longer need to declare that no mandatory contributions were paid or were required to be paid by or in respect of the member to any MPF scheme since the specified date of permanent departure in the statutory declaration (MPF(S)-W(SD2)) to be submitted. For details, please visit the MPFA's website.
If you need more information about how to make a statutory declaration, you may click here to read the explanation.
Revised guidelines on claims on the ground of small balance (30 April 2008)
According to the Mandatory Provident Fund Schemes (Amendment) Ordinance 2008 gazetted on 18 January 2008:
When a scheme member applies for withdrawal of MPF accrued benefits on the ground of small balance, he/she will no longer be required to satisfy the following requirement:-
No mandatory contributions were paid or were required to be paid by or in respect of the member to any MPF scheme during the 12 months immediately preceding the lodgment of the application.
The new requirement is that as at the date of the application, at least 12 months have elapsed since the contribution day in respect of the latest contribution period for which a mandatory contribution is required to be made.
A revised Statutory Declaration form (MPF(S)-W(SD3)) is available for scheme member to make a declaration for claiming accrued benefits on the ground of small balance account.
For details, please visit the MPFA's website.
If you need more information about how to make a statutory declaration, you may click here to read the explanation.
Notice of Cessation of Employment by Employees to Approved Trustees (27 March 2008)
According to the Mandatory Provident Fund Schemes (Amendment) Ordinance 2008 gazetted on 18 January 2008:
To facilitate the transfer of employee's accrued benefits in his/her MPF account in a timely manner after the employee's cessation of employment, the trustee may accept a written notice by statutory declaration (Form MPF(S)-C(SD)) given by an employee as evidence of his/her cessation of employment and the date of cessation where the trustee concerned is satisfied that the former employer cannot be located or refuses to submit a written notice to the trustee about the cessation of employment of the employee. For details, please visit the MPFA's website.
If you need more information about the written notice by statutory declaration, you may click here to read the relevant guidelines.
Re-publication of Invitation for Lodgement of Claims for Payment of Accrued Benefits (Section 170(2) of the Mandatory Provident Fund Schemes (General) Regulation) (27 March 2008)
Please click here.
Mailing address for HSBC MPF correspondence (25 March 2008)
In order to enable us to process your request promptly, please send your MPF correspondence to the address below:
MPF AdministrationHSBC Life (International) LimitedPO Box 73770 Kowloon Central Post Office
Invitation for Lodgement of Claims for Payment of Accrued Benefits (Section 170 of the Mandatory Provident Fund Schemes (General) Regulation) (20 December 2007)
Please click here.
Invitation for Lodgement of Claims for Benefits (Section 172(10) of the Mandatory Provident Fund Schemes (General) Regulation) (20 December 2007)
Please click here.
Amendment to MPF Fund Names and Investment Objectives - Asian Equity Fund and Hong Kong Equity Fund (1 November 2007)
With effect from 1 November 2007, the investment objectives of the Asian Equity Fund and Hong Kong Equity Fund (collectively the "Constituent Funds") are amended to reflect the revised investment objectives of the underlying approved pooled investment fund (the "APIF") of the Constituent Funds. The change provides the fund manager of the APIF with greater flexibility in managing the APIF for the benefit of investors in the Constituent Funds. The name of the Asian Equity Fund and the Hong Kong Equity Fund have therefore been amended as the Asia Pacific Equity Fund and Hong Kong and Chinese Equity Fund, respectively, and take effect from 1 November 2007. The amended investment objectives of these Constituent Funds are as follows:
The Asia Pacific Equity Fund shall be invested in an authorised unit trust investing in portfolios of carefully selected quoted securities on regulated stock exchanges in the Asia Pacific, excluding Japan.
The Hong Kong and Chinese Equity Fund shall be invested in an authorised unit trust that may comprise Hong Kong listed Chinese equities (including H shares and red-chips) and other securities listed on the Hong Kong Stock Exchange. A portion of the investment portfolio indirectly held by this Fund may hold securities issued by companies deriving a preponderant part of their income and/or assets from Hong Kong and/or China that are listed on other stock exchanges.
HSBC Provident Fund Trustee (Hong Kong) Limited, has been informed of, and has approved, the proposed amendments, in our capacity as the trustee of the Constituent Funds.
The amended investment objectives of these Constituent Funds can be found in the Supplement of the Principal Brochure dated 22 October 2007. For further enquiries, please contact HSBC MPF Member Hotline on (852) 3128 0128.
Update on HSBC Mandatory Provident Fund 'Principal Brochure' (31 October 2007)
Important: If you are in any doubt about the content of this note, you should seek independent professional advice
We are pleased to announce a number of enhancements to your MPF scheme with HSBC.
Launch of Multi-Manager
We have introduced a Multi-Manager approach for the investment of the selected underlying pooled investment funds, a new structure that uses the specialised expertise of acclaimed third-party fund managers. This new fund-management structure is now in place at no additional cost to members.
Enhanced Fee Structure
We have also enhanced our fee structure for selected constituent funds, bringing more benefits to you. Rates of Management Fees have been restated and will become effective on 1 November 2007. Please refer to the following table in details.
| Capital Preservation Fund | ||
| Hang Seng Index Tracking Fund | ||
| Stable Growth Fund | ||
| Balanced Fund | ||
| Guaranteed Fund2 | ||
| Growth Fund | ||
| North American Equity Fund | ||
| European Equity Fund | ||
| Asian Equity Fund3 | ||
| Hong Kong Equity Fund3 |
1 The rate is based on the net asset value of the fund per annum.
2 0.75% guaranteed charge still applies in addition.
3 With effect from 1 November 2007, the name of the Asian Equity Fund will be revised as Asia Pacific Equity Fund, and the name of the Hong Kong Equity Fund will be revised as Hong Kong and Chinese Equity Fund.
New Appointment of Investment Adviser
Further, we would like to advise that Sinopia Asset Management (UK) Limited was appointed as an additional Investment Adviser for the insurance policy of the Guaranteed Fund with effect from 29 October 2007.
For enquiries, please contact the HSBC MPF Member Hotline on (852) 3128 0128.
HSBC Provident Fund Trustee (Hong Kong) Limited, has been informed of, and has approved, the proposed amendments, in the capacity as the trustee of the Constituent Funds.
Issued by HSBC Provident Fund Trustee (Hong Kong) Limited.
A better world with the HSBC MPF (24 September 2007)
One of the HSBC Group's major corporate responsibility initiatives is to protect our environment. As such, the HSBC MPF has recently joined the lead to use Forest Stewardship Council (FSC) certified paper to print its MPF Annual Member Benefits Statement. The FSC is an international organisation that brings people together to find solutions that promote responsible stewardship of the world's products.
The HSBC MPF is one MPF service provider to take this initiative. Besides being environmentally conscious, the HSBC MPF is helping its customers protect the environment by absorbing the additional cost of using FSC certified paper itself, instead of passing it on to its members.
Guaranteed Interest Rate announcement for the new scheme year (29 June 2007)
The Guaranteed Interest Rate for our MPF Guaranteed Fund offered under SuperTrust and SuperTrust Plus will remain at 0.25% per annum, from 1 July 2007 to 30 June 2008.
Provided the Guarantee Conditions are met, this is the minimum return that your employees will receive. Your employees will receive the higher of the actual investment return or the accumulated guaranteed return when payment is made. The Guarantee Conditions remain unchanged and are stated in the Principal Brochure.
Our new MPF member online service (26 June 2007)
To make life easier for you, there are new features to the online service that will help you get the most out of your MPF.
Other than seeing an overview of all your MPF accounts, you can check your MPF total asset distribution and compare the account balance with your vested balance through Personal Internet Banking. You can also view your Accumulated Contributions/Transfers by MPF account. You can check the fund details of your transactions, search by contribution dates, and view your contribution history of the last 18 months.
Projection on MPF Benefits is a newly developed feature to look ahead at your portfolio up to the time you turn 65. You can compare the projections of your Mandatory, Voluntary, and Personal Contributions.
If you wish to re-allocate your existing or/and future contributions, you can change your investment plan online with three options - Portfolio Rebalance, Asset Switch, and Contribution Redirection. You may use a step-by-step illustrative guide to understand how they work. Once you confirm your instruction online, you will receive an Acknowledgement with reference number provided. A confirmation notice will be sent to your Personal Internal Banking email box if your instruction has been successfully processed.
Treatment of MPF Accrued Benefits Transfer (7 May 2007)
If you are electing a transfer of your accrued benefits from an HSBC MPF - SuperTrust to an HSBC MPF - SuperTrust Plus, or to an account or a preserved account within the same HSBC MPF scheme; and there is no offset of severance payment or long service payment required, then all fund units that are necessary to be transferred to your designated MPF account will not have to be redeemed.
For all other types of transfer, your funds will be redeemed for the transfer to be processed. The amount will be re-invested according to the investment allocation of your designated MPF account. There may be a time lag between the redemption from the Existing MPF account and investment in your designated MPF account.
Update on HSBC Mandatory Provident Fund 'Principal Brochure' (29 December 2006)
Notice is hereby given on the following changes of the 'Principal Brochure' of HSBC Mandatory Provident Fund - SuperTrust (Registration no. - MT00261) and SuperTrust Plus (Registration no. - MT00245). Amendments are underlined for easy reference.
- Name change of Investment Adviser and Investment Sub-Advisers (Page 4 and 5)
Current name Previous name Halbis Capital Management (Hong Kong) Limited HSBC Halbis Partners (Hong Kong) Limited Halbis Capital Management (UK) Limited HSBC Halbis Partners (UK) Limited Halbis Capital Management (USA) Inc HSBC Halbis Partners (USA) Inc
- Information change of Investment Sub-Advisers (Page 5)
With effect from 1 November 2006, the information about HSBC Investments (UK) Limited was replaced by the following information.
Sinopia Asset Management (UK) Limited
8 Canada Square
London E14 5HQ
England - Availability of On-going Cost Illustrations and Illustrative Example for Capital Preservation Fund (Page 34)
A document that illustrates the on-going costs on contributions to constituent funds in HSBC Mandatory Provident Fund - SuperTrust and SuperTrust Plus (except for the Capital Preservation Fund) is distributed with the 'Principal Brochure'. An illustrative example for Capital Preservation Fund is currently available in the Enrolment Kit. Before making any investment decisions concerning MPF investments, you should ensure that you have the latest version of these documents which can be obtained by calling our HSBC MPF Member Hotline on (852) 3128 0128.
For enquiries, please contact the HSBC MPF Member Hotline on (852) 3128 0128.
Issued by HSBC Provident Fund Trustee (Hong Kong) Limited
December 2006
Check your MPF accounts regularly (9 November 2006)
The Mandatory Provident Fund Schemes Authority (MPFA) encourages scheme members to take better care of their MPF accounts so as to better protect their future. Scheme members should check their accounts through trustees' hotlines, websites and customer service centres to make sure that contributions have been made by their employers.
Scheme members can obtain details about their accounts, including MPF accrued benefits, employer's and employee's contributions and fund prices etc., through Annual Benefit Statement (ABS). Scheme members may also consider whether to change their investment portfolio with reference to ABS or Fund Fact Sheet.
MPFA steps up enforcement to better protect employees (9 November 2006)
The Mandatory Provident Fund Schemes Authority (MPFA) had decided to step up the imposition of financial penalty on defaulting employers as empowered by the legislation. A reminder that the Authority may impose a financial penalty of 10% of the default contribution or HKD5,000 on offenders had been issued together with surcharge notice to defaulting employers. The Authority also reserves the right to initiate legal proceedings against such employers.
Claiming accrued benefits (24 August 2006)
With effect from 1 September 2006, claims for accrued benefits of a deceased member must be accompanied by a copy of the deceased member's death certificate certified by the Births & Deaths Registry, a lawyer or an HSBC executive.
Please note that when submitting the copy of the Letter of Administration (LA)/Probate and the beneficiary form submitted for claiming MPF accrued benefits and ORSO benefits respectively, they should also be certified by a lawyer or an HSBC executive.
Guaranteed Interest Rate announcement for the new scheme year (19 June 2006)
The Guaranteed Interest Rate for our MPF Guaranteed Fund offered under SuperTrust and SuperTrust Plus will remain at 0.25% per annum, from 1 July 2006 to 30 June 2007.
Provided the Guarantee Conditions are met, this is the minimum return that your employees will receive. Your employees will receive the higher of the actual investment return or the accumulated guaranteed return when payment is made. The Guarantee Conditions remain unchanged and are stated in the Principal Brochure.
Your Security Device - in the forefront of online personal protection (13 March 2006)
At HSBC, we are dedicated to protecting our customers' online security. To further protect our customers, we have introduced a small electronic device, which is required for logon and some online transactions. At the touch of a button, the Security Device generates a single-use, time-sensitive number - a Security Code, which you will need to gain access to HSBC Internet Banking. This simple yet effective procedure provides high-level protection from a variety of possible attacks.
In order to continue using our Internet banking services, you are required to complete a simple, one-time activation process of your Security Device. Once you have activated your device, you will be asked to enter a Security Code, in addition to your password, every time when you log on to HSBC Internet Banking to maximise protection.
Customers who have registered for the online MPF service will be notified by phases.
To view a demonstration on how to activate and use your Security Device, and for additional tips on how to further protect yourself from Internet attacks, please visit our Online Security section.
Personal Contributions service for preserved account holders (23 February 2006)
To fully enjoy the golden years of retirement, it's vital to accumulate adequate funds. Now, as our preserved account holders, you can make use of our Personal Contributions service, a simple way to save more at your own pace. Simply complete a Personal Contributions Application Form (INPH) to enrol. You will also get a special bonus rate same as what you're currently having for your preserved account.
Other administration forms for making lump sum Personal Contributions and changing your instructions in the future are available at our form download section.
Revised guidelines on claims for payment of accrued benefits (14 February 2006)
The Mandatory Provident Fund Schemes Authority has recently published revised Guidelines on Payment of Accrued Benefits - Documents to be Submitted to Approved Trustees (Guidelines IV.4).
The amendments have been made to facilitate claims lodged by a committee of estate/guardian on behalf of a mentally incapacitated member. The Claim Form has been revised (Form INPW) in this regard. A new Statutory Declaration form (Form MPF(S)-W(SD5)) is available for the committee of estate/guardian to make a declaration of total incapacity on behalf of the member.
The revised guidelines also clarify the requirements of evidence for claims on the grounds of permanent departure. Members should provide immigration visa or foreign passport etc which gives them the permission to reside permanently or for an indefinite period in a place outside Hong Kong.
Some amendments have been made on other statutory declaration forms. For the most updated version, please visit our form download section.
MPF Principal Brochure Update (30 December 2005)
In compliance with the Code on Disclosure for MPF Investment Funds issued by the Mandatory Provident Fund Schemes Authority, the Principal Brochure has been updated according to the new format of Fee Table as required. The fees and charges remain unchanged, with the notice period for any future changes of the joining fee, contribution charge and offer spread stated.
Some amendments have also been made to update the Investment Advisers and Investment Sub- Advisers following the reorganisation of HSBC investment management businesses and the formation of HSBC Halbis Partners, a specialist business focuses on selected investment areas. The investment objectives of the Constituent Funds remain unchanged.
Other updates include more comprehensive information on Personal Contributions, partial withdrawal of additional voluntary contributions, latest weightings of the constituent stocks of Hang Seng Index and personal data statement.
Please click here for an updated Principal Brochure.
MPFA takes action against default contribution cases (13 September 2005)
Commencing with contributions for October 2005, the Mandatory Provident Fund Schemes Authority (MPFA) will adopt stricter measures against default contribution cases.
Further to the MPFA crackdown, MPF service providers are obliged by law to report any non-payment, underpayment or late payment within each settlement period. After receiving a report of default contributions or unsettled discrepancy cases from an MPF service provider, the MPFA will issue a payment notice to the defaulting employers and request that the outstanding contributions plus a five per cent surcharge be settled immediately. Employers not settling in the designated period will be reported to the MPFA again. The five per cent surcharge will be imposed on both the employer's and employee's outstanding contributions, with all surcharges allocated as mandatory contributions in the relevant employee's accounts.
In light of these requirements, we kindly remind all employers to make mandatory contributions for their employees in full and on time. To avoid receiving payment notice issued by the MPFA, please call us to rectify any discrepancies as soon as possible, or call our hotline on 2583 8033 for further details.
Guaranteed Interest Rate announcement for the new scheme year (27 May 2005)
The Guaranteed Interest Rate for our MPF Guaranteed Fund offered under SuperTrust and SuperTrust Plus will remain at 0.25% per annum, from 1 July 2005 to 30 June 2006.
Provided the Guarantee Conditions are met, this is the minimum return that your employees will receive. Your employees will receive the higher of the actual investment return or the accumulated guaranteed return when payment is made. The Guarantee Conditions remain unchanged and are stated in the Principal Brochure.
Requesting refunds for Long Service Payments or Severance Payments (30 December 2004)
Employer claiming offset of Long Service Payments (LSP) or Severance Payments (SP) against accrued benefits attributable to employer's contributions on termination of employment must complete the Payment Proof for Long Service Payment/Severance Payment (INLS) form, which must also be duly signed by both employer and employee. The employer must specify the total amount of LSP/SP entitled by the employee and the outstanding LSP/SP amount. Otherwise, we are unable to process your refund application and the accrued benefits may be transferred to a scheme selected by your employee.
Employer is therefore reminded to follow the steps set out below so as to ensure the prompt handling of the refund process, which will be applied strictly with effect from January 2005:
- Complete the INLS form.
Please note that the signatures of both employer and employee must match that in our records. - If the employee has not signed the INLS form or the signature does not match that in our records, please also provide appropriate documentary proof to substantiate the LSP/SP refund, including evidence supporting the LSP/SP amount and payment proof. The latter could include a copy of an auto-pay statement, deposit pay-in slip or the employer's bank statement showing the cheque payment has been cleared by the employee.
Please note that all supporting documents must include the employer's signature along with the company chop. - In the absence of your employee's signature confirming and acknowledging receipt of the LSP/SP amount, we may need to notify the employee of your claim and may only process the refund where the employee has no objection to it.
As the refund involves payment of accrued benefits from a member's account, we are required to act diligently and your cooperation is much appreciated.
Revised guidelines on the calculation of mandatory contributions for employees who attain the age of 65 (6 August 2004)
The Mandatory Provident Fund Schemes Authority issued revised guidelines on the calculation of mandatory contributions with respect to employees who attain the age of 65 on or after 1 October 2004. The revised guidelines require both employer and employee to make mandatory contributions for relevant income earned up to the day before the employee's 65th birthday, regardless of whether the income is paid to the employee before or after his/her 65th birthday. For example, if an employee's 65th birthday falls on 18 October 2004, mandatory contributions should be paid up to 17 October 2004 based on the relevant income earned up to 17 October 2004. No mandatory contribution is required for any income earned by the employees thereafter.
Illustrative examples:
Employee A - Remains in employment after 65th birthday
| Payroll cycle | Calendar month payroll |
| 65th birthday | 18 October 2004 |
| Relevant income for October 2004 | HKD8,680 |
| Relevant income earned before 65th birthday | HKD4,760 (ie HKD8,680 x 17/31) |
| Employer's mandatory contribution | HKD238 (ie HKD4,760 x 5%) |
| Employee's mandatory contribution | N/A (as HKD4,760 is less than the minimum level of relevant income of HKD5,000 per month) |
| Deadline for payment of contribution | 10 November 2004 |
| No mandatory contribution is required for any income earned after the age of 65 | 18 October 2004 and thereafter |
Employee B - Ceases employment on 65th birthday
| Payroll cycle | Calendar month payroll |
| 65th birthday | 28 October 2004 |
| Relevant income for 1 - 27 October 2004 | HKD21,060 |
| Relevant income earned before 65th birthday | HKD21,060 |
| Employer's mandatory contribution | HKD1,000 (ie HKD20,000 x 5% as HKD21,060 is above the maximum level of relevant income of HKD20,000 per month) |
| Employee's mandatory contribution | HKD1,000 (ie HKD20,000 x 5%) |
| Deadline for payment of contribution | 10 November 2004 |
MPFA takes action to remind employers to settle outstanding contribution discrepancies (16 June 2004)
Under the MPF legislation, employers shall make mandatory contributions on or before the prescribed contribution day for each contribution period. MPF service providers are obligated to remind the employers to settle any discrepancy between the relevant calculations and the amount paid on or before the 30-day settlement period following the contribution day and shall report those employers who fail to rectify the discrepancy as required to the Mandatory Provident Fund Schemes Authority (MPFA).
Commencing June 2004, after receiving the report of unsettled discrepancy cases from the MPF service providers, the MPFA will issue reminders to the defaulting employers requesting them to settle the discrepancies, failing which MPFA may impose surcharges on the outstanding amounts.
If the amount of contributions paid to us does not tally with that in your remittance statements, we will notify you via a discrepancy bill immediately after your contributions are processed. To avoid receiving the reminder issued by MPFA, please contact us to rectify the discrepancy as soon as possible. Should you need any help, please call our enquiry hotline on (852) 2583 8033.
MPFA takes action to remind self-employed persons to settle outstanding contributions (16 June 2004)
Under the MPF legislation, self-employed persons (SEP) shall make mandatory contributions, either monthly or yearly as elected by themselves, on or before the prescribed contribution day. MPF service providers are obligated to remind the SEP to settle any outstanding contributions on or before the 30-day settlement period following the contribution day and shall report any defaulting SEP to the Mandatory Provident Fund Schemes Authority (MPFA).
After receiving the report of unsettled outstanding contribution cases from the MPF service providers in respect of the contribution month of June 2004 or for those who choose to contribute annually in June, the MPFA will issue reminders in September 2004 to defaulting SEP requesting them to settle the outstanding contributions. In circumstances where you are not required to make any mandatory contributions, please inform us promptly so that your records can be updated. Should you need any help, please call our enquiry hotline on (852) 3128 0128.
Reminder of tax implications (21 May 2004)
Employers' mandatory and regular voluntary contributions to an MPF scheme are tax deductible up to 15% of the total emoluments of the employees for the period to which the payments relate.
Mandatory contributions of employees and self-employed persons are tax deductible subject to a maximum of HKD12,000 per year. However, any voluntary contributions are not tax deductible. To check your contribution records for the past 12 months, log on to online@hsbc. If you have not registered yet, please click herefor more details.
(The above is general information only. You should seek independent professional advice for your own particular circumstances.)
Late payments will be reported to the MPFA (21 May 2004)
As part of your MPF responsibilities as an employer, you are required to submit your Remittance Statement and pay contributions by the 10th day of the calendar month following the month in which a contribution period ends. (For casual employees you must submit your Remittance Statement and pay contributions within 10 days after the end of each contribution period.) A participating employer paying contributions within the 30-day settlement period after the contribution due date will be regarded as having made a late payment.
To closely monitor any persistent late payments, all MPF service providers are required to report to the Mandatory Provident Fund Schemes Authority (MPFA) those employers who make four or more late payments (ie within the settlement period) in a scheme financial year. We would therefore like to remind all our customers again to pay contributions on or before the contribution due date.
Save your time when claiming refunds (8 January 2004)
A new form for employers to use when requesting refunds for the offsetting of Long Service Payments or Severance Payments (LSP/SP) is now available.
Even if your employees are entitled to accrued benefits from both ORSO and MPF schemes, you need only complete and submit one form (the new INLS form) in order to request a refund of accrued benefits derived from employer's contributions for offsetting LSP/SP. Refunds will be made from your ORSO scheme first, then from your MPF scheme.
If you have either an ORSO or an MPF scheme, this new form is also applicable. Simply provide the relevant information to us.
To ensure prompt processing of the refund, please remind your employees to submit their instructions for the treatment of their benefits by submitting a transfer form (INPM form) to us. Alternatively, they may also submit a claim form (INPW form) if they are already entitled to the mandatory MPF benefits.
If you need more information about LSP/SP under the Employment Ordinance, you may visit the Labour Department's website.
Administration tips for the Self-Employed (28 October 2003)
Paying your MPF contributions by direct debit saves you time in returning your Remittance Statement and cheque to us. Contributions will be automatically debited from your designated bank account and we will send you payment confirmation. It couldn't be easier! Simply complete two forms and return them to us. We will handle the rest for you.
Full launch of Business Internet Banking MPF Service (23 June 2003)
At HSBC, we understand that preparing and submitting your company's Remittance Statements can be time-consuming. That's why we have introduced our new Business Internet Banking MPF Service to help you meet your MPF obligations in a more efficient and convenient way.
Over the past two months we have invited some of our customers to try out the new MPF features in our Business Internet Banking. The results from the field tests have been encouraging with positive feedback, which has prompted us to launch this service to all our MPF customers.
Business Internet Banking MPF Service enables you to submit MPF contributions online in a secure, encrypted environment. Here are just a few of the advantages you'll enjoy as a Business Internet Banking MPF Service user:
- Calculate contribution amounts automatically and avoid costly errors
- Select your preferred direct debit date
- Prepare and submit your Remittance Statements at any time and at your convenience
- Receive email confirmation after your contributions have been invested in the funds
- Enjoy the new services free of charge
To discover this simpler and speedier way to complete your MPF remittances, please contact your MPF Account Executive or call our hotline on (852) 2583 8033.
MPFA to crack down on late payments (30 April 2003)
Under the Mandatory Provident Fund Schemes (General) Regulation where an employer fails to pay contributions within a settlement period of 30 days, MPF service providers must report such case to the Mandatory Provident Fund Schemes Authority (MPFA). To discourage employers from using this settlement period to make late contributions, the MPFA will closely monitor employers who pay within the settlement period and may take action against those who fail to meet the legislative requirements.
The MPFA recently informed all MPF service providers that they should prepare to report employers who make four or more late payments (ie within the settlement period) in a scheme financial year. This new reporting regime will be implemented in September 2003, and includes the reporting of late payments for contribution periods starting February 2003. We would therefore like to remind all our customers that paying on or before the legislative due date is vital.
Contribution for expatriates after the implementation of MPF legislative amendments (29 March 2003)
Since the recent implementation of MPF legislative amendments on 1 February 2003, we have received enquiries from employers asking when the first day of contributions for expatriate employees who cease to be exempt from MPF begins. In order to assist you in understanding the calculation process, please see our brief explanation below:
Simplification of the 30-day contribution holiday for new employees
Before legislative amendment
Eligible employees (other than casual employees) who were employed before 1 February 2003 should commence making employee mandatory contributions on the 31st day of employment. This means employees are entitled to a 30-day contribution holiday.
After legislative amendment - extension of contribution holiday
Eligible employees (other than casual employees), who are paid monthly (or more frequently than monthly, eg weekly, semi-monthly) and are employed on or after 1 February 2003, should commence making employee mandatory contributions on the first day of the next payroll period following the end of the 30-day contribution holiday. This means any incomplete payroll period immediately following the 30-day contribution holiday will be exempt as well.
For those employees who are paid less frequently than monthly (eg quarterly), employee mandatory contributions should commence on the first day of the next month following the month in which the 30-day contribution holiday ends.
Impacts on expatriate employees
If your expatriate employee's original employment visa was granted for a period of 13 months or less but subsequently renewed or extended, he/she will cease to be exempt from MPF with effect from the first day following the end of the initial 13-month period. If the expatriate employee remains employed for 60 days or more after he/she ceases to be exempt, his/her employer is required to enrol him/her into an MPF scheme and make mandatory contributions accordingly.
When determining the commencement date of an expatriate employee's mandatory contributions, employers should consider the date which his/her employee ceases to be exempt. If that date falls before 1 February 2003, the rule for 'before legislative amendment' applies. If that date falls on or after 1 February 2003, the rule for 'after legislative amendment' applies.
Example
Assumption: Contribution period based on calendar month (starting from the first day to the end of each month)
| Expatriate employee commences employment on | 26 February 2002 |
| Employment visa granted for the period from | 26 February 2002 - 26 February 2003 |
| Visa renewed on | 27 February 2003 |
| The expatriate ceases to be exempt on | 26 March 2003 ie the first day following the end of the initial 13-month period Since the expatriate employee ceases to be exempt on the date after the implementation of legislative amendment on 1 February 2003, the extension of contribution holiday applies. |
| Employer's mandatory contributions should commence on | 26 March 2003 |
| Employee's mandatory contributions should commence on | 1 May 2003 ie the first day of the next payroll period following the 30-day contribution holiday which ends on 24 April 2003 |
| Employer should enrol the expatriate employee within the 60-day permitted period which ends on | 24 May 2003 ie 60 days from the date on which the expatriate employee ceases to be exempt |
Re-application of employment visa
If your expatriate employee's employment visa has expired and he/she has re-applied for a new employment visa for a period of 13 months or less, the calculation of the 13-month exemption period will start afresh from the commencement of the new employment visa. In other words, he/she will remain exempt from MPF.
Reporting employee termination on Remittance Statements (29 March 2003)
Before legislative amendment
Employers were required to submit an employee's final mandatory contribution within 10 days of employment termination. In order to meet the legislative requirements, employers made contributions by submitting the payment together with the 'Employee Termination - Remittance of Last Contribution Form' (IN09/IN19).
After legislative amendment
Under the legislative amendment (effective on 1 February 2003), the payment of final mandatory contribution is due on the 10th day of the calendar month following the month in which the termination of employment occurrs. Employers can therefore pay the final mandatory contribution for employees who cease employment by using the Remittance Statement. As a result, employers no longer need to report final contributions separately on the IN09/IN19 form as the form is now discontinued.
Summary of the major legislative amendments which have taken effect from 1 February 2003 (19 February 2003)
Due to the MPF legislative amendments on the minimum level of relevant income and simplication of the contribution holiday, please be reminded to adjust the contribution amount for your employees who are earning above HKD4,000 but less than HKD5,000 per month and for any new employees who are employed on or after 1 February 2003.
The major legislative changes arising from the Mandatory Provident Fund Schemes (Amendment) (No.2) Ordinance 2002, gazetted on 19 July 2002, which has taken effect from 1 February 2003 are summarised below:
Increase of the minimum level of relevant income from HKD4,000 per month to HKD5,000 per month, and from HKD130 per day to HKD160 per day
Old rule
Employees earning less than HKD4,000 per month (or HKD130 per day) are not required to make employee's mandatory contributions.
New rule
The new rule applies to all existing and new employees, including casual and non-casual employees. Employees who are earning less than HKD5,000 per month (or HKD160 per day) for any contribution periods (payroll cycles) starting on or after 1 February 2003 do not need to make employee's mandatory contributions.
Employers are still required to contribute as usual.
Simplification of the 30-day contribution holiday for new employees
Old rule
Employees are entitled to a 30-day contribution holiday and their mandatory contributions should start from the 31st day of employment.
New rule
The new rule only applies to non-casual employees employed on or after 1 February 2003.
Monthly or more frequent than monthly payroll
eg monthly, semi-monthly, fortnightly and weekly payroll frequencies
The contribution holiday for new employees will extend to cover any incomplete payroll cycle in which the 30th day of employment falls. Employee's mandatory contributions should start from the 1st day of the next complete payroll cycle.
Less frequent than monthly payroll
eg quarterly and yearly payroll frequencies
The contribution holiday for new employees will extend to cover any incomplete calendar month in which the 30th day of employment falls. Employee's mandatory contributions should start from the 1st day of the next complete calendar month.
Simplification of MPF contribution remittance arrangements
Old rule
Employers should pay contributions by the 10th day after the end of each contribution period.
New rule
The new rule only applies to non-casual employees and contribution periods (payroll cycles) ending on or after 1 February 2003. Employers should pay contributions by the 10th day of the calendar month following the month in which a contribution period ends.
New reporting procedures for terminating employees
Notification of changes in business name
Employers should notify their MPF provider of any changes in business name within 30 days of the change.
Disclaimer
- The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax level, and practice could affect the information in this site.
- The information shown is based on date or information obtained from sources believed to be reliable but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness and will not be held liable for damages arising out of any person's reliance upon this information.
- Information partially sourced from Mandatory Provident Fund Schemes Authority.
