MPF Exempted Pension Scheme

  1. #1

    Join Date
    Aug 2018
    Posts
    27

    MPF Exempted Pension Scheme

    I recently learned that my employer offers a pension scheme alternative to the MPF, under which they contribute 5% of my monthly salary without a 30k cap. Is this commonly offered by multinational companies? If yes, what percentage do they usually contribute?

    The scheme explained:
    Offer the Option Between an MPF Exempted ORSO Scheme and an MPF Scheme


  2. #2

    Join Date
    Dec 2013
    Location
    Hong Kong
    Posts
    9,173

    Some companies like to have consistency across global regions. these help them achieve that. I don't know if it's common or not.


  3. #3

    Join Date
    May 2008
    Location
    DB
    Posts
    3,572

    Before the MPF was put in place, some companies had their own scheme. When the MPF came around, we were allowed to keep our scheme, then labelled exempt, in place of moving to MPF, largely because the benefits were better than MPF.

    You will find a big range of contribution levels as many companies have stayed with their original plan, for example we run ours at standard 10% contribution, up to 20% contribution. For all new staff, you must give the choice of MPF or the exempt plan.