Like Tree19Likes

Can you ask your boss to give you your MPF contributions instead?

Closed Thread
Page 2 of 3 FirstFirst 1 2 3 LastLast
  1. #11
    Original Post Deleted
    In an ideal world that's what should happen. Unfortunately, what happens in the val world is that far too many people who can save for their retirement simply don't and end up needing support in their old age. When populations of working age people were growing faster than the number of retirees, this "pay as you go" system is workable but once the population starts ageing the burden on the shrinking pool of taxpayers becomes unsustainable (even before the heavy burden of civil service pensions is taken into account). Compulsory savings is the only way to address this even though it's an inconvenience for the minority who do plan and save.

    Totally agree with your comments on MPF – it was badly designed and the government of the day knew it was badly designed when they implemented it. Other systems like Australia's or New Zealand's work much better, providing savers with more control over their investments, default options for people who won't or can't decide what to invest it, much lower costs and the ability to withdraw early if necessary with a back up for those who have been unable to save or whose savings run out after they retire.
    HK_Katherine likes this.

  2. #12
    Quote Originally Posted by Hkemail888:
    Trainer Investor, you’ve stopped your blog without a proper farewell post =P had been following for quite a while. Hope you are well and that your novel was published successfully!
    All well thanks. I've sent you a reply by PM.

  3. #13

    Compared to the UK's pension scheme, I can say it's a lot lot better. The money can be treated as cash if you leave hk and don't intend to return, also if your employer makes contributions above the voluntary amount you can take out as cash when you leave that company.

    In the UK, you could actually pay 25 years worth of pension contributions and get zero for it

    HK_Katherine likes this.

  4. #14

    Join Date
    Dec 2005
    Posts
    1,550
    Quote Originally Posted by periphery831:
    I ask because I've heard other people ask their bosses to give them their MPF. What kind of punishment for such deviant acts?
    Exempt Persons
    The following are exempt persons who are not required to join an MPF scheme:
    domestic employees;
    self-employed hawkers;
    people covered by statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers;
    members of occupational retirement schemes which are granted MPF exemption certificates;
    people from overseas who enter Hong Kong for employment for not more than 13 months, or who are covered by overseas retirement schemes; and
    employees of the European Union Office of the European Commission in Hong Kong.

  5. #15
    Quote Originally Posted by SonicYouth1:
    In the UK, you could actually pay 25 years worth of pension contributions and get zero for it
    For example?

  6. #16
    Quote Originally Posted by shafiq:
    Exempt Persons
    The following are exempt persons who are not required to join an MPF scheme:
    domestic employees;
    self-employed hawkers;
    people covered by statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers;
    members of occupational retirement schemes which are granted MPF exemption certificates;
    people from overseas who enter Hong Kong for employment for not more than 13 months, or who are covered by overseas retirement schemes; and
    employees of the European Union Office of the European Commission in Hong Kong.
    The punishment being?

  7. #17

    Join Date
    Sep 2018
    Location
    香港特别行政区
    Posts
    2,841
    Quote Originally Posted by periphery831:
    The punishment being?
    They are in Cap 485. Skimming through it and finding "offences commited by employers", it looks like the maximum punishment is at least 350k and three years imprisonment (I didn't bother matching the offences to specific sections)
    periphery831 likes this.

  8. #18

    Join Date
    Oct 2005
    Posts
    14,414

    When I left HK I cashed in my MPF, Paid $1000 a month for 4 and a half years. Employer matched it.

    Bought myself a nice shiny BMW in UK with it!
    So it had its uses.

    periphery831 likes this.

  9. #19

    Join Date
    Dec 2005
    Posts
    1,550
    Quote Originally Posted by periphery831:
    I ask because I've heard other people ask their bosses to give them their MPF. What kind of punishment for such deviant acts?
    What is meant by giving them the MPF? If relevant income is declared, MPF need to paid. Is it people are asking bosses to give them their MPF while laid off instead of offsetting the severance pay?

  10. #20
    Quote Originally Posted by shafiq:
    What is meant by giving them the MPF? If relevant income is declared, MPF need to paid. Is it people are asking bosses to give them their MPF while laid off instead of offsetting the severance pay?
    Not sure people do it now but bosses giving workers their MPF contributions instead of putting into their MPF.