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Transfer an overseas pension directly to MPF?

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  1. #1

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    Transfer an overseas pension directly to MPF?

    Pretty much what the subject title says.

    I've been back in HK 5.5 years now and in 2015 my employer ceased payments to my RATS back home and just contribute to my MPF now. I would like to consolidate the two however I am led to believe that MPF providers will not accept transfers from overseas pension schemes and I would have to have the funds transferred to my account and then make a voluntary contribution. I think the income tax authority where I am from will be hesitant to permit this.

    I have sent them an email stating my case but wonder in anyone here had done something similar. It doesn't qualify for the trivial amount which I'd be able to move and close my pension thereafter.


  2. #2

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    Original Post Deleted
    My MPF has gone up 17% this year, my RATS in comparison has increased by 2.4% and I am pretty sure the Trustee fees on my RATS is higher than what I pay to HSBC for my MPF. I'd rather have it all in one place and if they do authorise to transfer it to me then I can make a voluntary contribution for X% keeping X% in cash for other investments outside of the MPF.

    So I guess I have two scenarios;

    1) Where they transfer direct to my MPF.
    2) Where they transfer to me and I can use the funds for MPF and/or other investments.

    1 is dependent on the MPF provider if they accept it and 2 is dependent on whether the Income Tax back home will be willing to pay it to me for 'onward contributions'
    Last edited by Trebor; 23-05-2017 at 11:24 AM.

  3. #3

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    Quote Originally Posted by Trebor:
    My MPF has gone up 17% this year, ....
    Purely curious..... who is your MPF manager/company? 17% is darned good return

  4. #4

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    Perhaps I haven't explained myself properly.

    I don't particularly want to put it into the MPF, I am using this 'performance' as a means of justifying the transfer to the tax authority back home amongst other things, consolidation etc.

    Ideally I want them to transfer it to me but they are not keen to transfer unless it's direct to another pension scheme. I would then make the voluntary contribution if they needed evidence of me doing so but I could then pull it all straight back out. I believe MPF does not allow direct transfers from overseas schemes, do you know if this is true?

    If it does then it is still attractive to me as if I were to leave HK I could take the whole lot with me and perhaps use it for investments/business elsewhere in Asia. Currently my (Guernsey) Pension is stuck there for another 25+ years. I think I can do a better job of growing it elsewhere.

    There may be a 10% tax hit on the initial transfer which is a down side. (It's only around HKD 600,000 after tax)

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  5. #5

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    Quote Originally Posted by LifeInHK:
    Purely curious..... who is your MPF manager/company? 17% is darned good return
    HSBC

    I got the figures a bit wrong but it doesn't matter for my argument.

    It's 10% for the year and 14% since inception.

    Here's the fund split if you are interested. Current and Future.

    Asia Pacific Equity Fund 15.99% 15.00%
    Core Accumulation Fund (without de-risking nature) 18.26% 20.00%
    European Equity Fund 13.24% 7.00%
    Hang Seng Index Tracking Fund 22.64% 28.00%
    Hong Kong and Chinese Equity Fund 15.47% 15.00%
    North American Equity Fund 14.40% 15.00%

  6. #6

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    Without getting into the financials does anybody know the answer to the main question?

    Will MPF Providers accept transfer from overseas schemes and if, to my knowledge, not then why not? If they don't then I am looking to get the pension paid to my account and then it is out of the control of the Income tax authority what I do with it.

    It's unlikely any of it will go into the MPF unless they demand proof of transfer.


  7. #7

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    Quote Originally Posted by Trebor:
    Without getting into the financials does anybody know the answer to the main question?

    Will MPF Providers accept transfer from overseas schemes and if, to my knowledge, not then why not? If they don't then I am looking to get the pension paid to my account and then it is out of the control of the Income tax authority what I do with it.

    It's unlikely any of it will go into the MPF unless they demand proof of transfer.
    Why don't you ask them direct?

  8. #8

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    Can you not withdraw it and make it a voluntary contribution?

    I'd drop them a line. I think its pretty obvious that most of us have done enough diligence on the MPF to know its best avoided.

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  9. #9

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    If you can point me to someone competent then I would.

    I believe they have been asked by my colleague and the answer was no but I'm not sure I trust them. Was hoping someone may have done it on here.


  10. #10

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    I would ask your HSBC mpf guy or your relation manager who could get into contact with the MPF guy to get the best answer.


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