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  • 2 Post By freeier
  • 2 Post By Rob2020

MPF or ORSO

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  1. #1

    Red face MPF or ORSO

    Hi Friends,

    I am changing jobs and in new company I have to choose between MPF or ORSO.

    If I choose ORSO, then the company contribution would be around 3500 HKD per month and if I choose MPF the company contribution would be 1500 HKD per month (capped by government) so money wise I will get more than double amount per month but if I left the company within 3 years I will get nothing and after that withdraw money percentage keep on increasing every year by 10% and will reach 100% after 10 years of service.

    Now, I am not sure about how many years I will stay in this company (may be around 5 years, may be 8-10 years, not sure).

    Can you help me to decide which one I should choose ?

    Thank you


  2. #2

    Join Date
    Nov 2005
    Location
    Cramped island
    Posts
    5,682

    So far after seeing my colleagues and some friends that elected MPF either by choice or by indifferences (due to HR not doing a good job explaining), the better choice is to pick ORSO. A few points:
    - once you pick one you can never switch to the other unless you quit and rejoin
    - the 1500 MPF is stuck there forever, even if your pay increase you are not going to get higher contribution by company

    If you are in the right line and if you really get hunted out for a new role within 3 years, you can always use ORSO value as a negotiation point for more $$.. doesn't mean you will not have it back out..

    LetsDiscuss and spode like this.

  3. #3

    Join Date
    Nov 2008
    Posts
    4,579

    If you company has a vesting scheme for their ORSO, it is reasonably easy to calculate the point at which ORSO becomes better on a year by year basis vs MPF.

    Rule of thumb, if you think you'll stay a year or two, go for MPF, else ORSO.

    LetsDiscuss and spode like this.