MPF Management Services
0F is a retirement protection system established for the working population of Hong Kong and one of the core pillars of Hong Kong’s retirement protection framework. Except for certain exempt persons stipulated in the MPF Schemes Ordinance (MPFSO), the MPF system covers employees and self-employed persons aged between 18 and 65. Under the MPFSO, employers are required to enrol employees in MPF schemes. Mandatory contributions are calculated on the basis of 10% of employee’s relevant income, with the employer and employee each contributing 5% and contributions are generally made on a monthly basis.
Master Trust Schemes are the most common type of MPF schemes. They pool contributions from various employers and scheme members together for administration and investment, so as to benefit from economies of scale and are available to all employers, employees, self-employed persons and persons planning to open personal accounts or tax-deductible voluntary contribution (TVC) accounts or special voluntary contribution accounts (SVC).
The following types of accounts can be setup under Master Trust Schemes:
• Primarily receives and accumulates MPF mandatory and voluntary contributions made under a scheme member’s current employment/self-employment
• New contributions for each contribution period will be made to this account
• Primarily receives and accumulates MPF contributions made under a scheme member’s former employment and/or former self-employment
• Receives and accumulates the MPF transferred from a scheme member’s contribution account under current employment through the Employee Choice Arrangement
Tax-Deductible Voluntary Contribution Account
• Receives and accumulates TVC made by a scheme member
• Receives and accumulates the MPF transferred from a scheme member’s other TVC accounts
Special Voluntary Contribution Account
• Receives and accumulates SVC made by a scheme member
There are now 12 MPF Trustees managing 24 Master Trust Schemes. According to MPFA statistics as of 30 Juner 2024, total MPF assets amounted to more than $1.22 trillion. The average fund expense rate of all constituent funds fell to 1.40%.
Please contact us regarding account opening, review, transfer and consolidation service.
Last Update: 8 October 2024