Pension advice

[oldenuf2nobeta]

Hi all,

I have now arrived in Hong Kong in readiness for starting work on 3rd April, I was asked to call into new employer to complete some HR paperwork.

I was given some pension information and told that I would be enrolled in a compulsory pension scheme where I would have to pay 5% of my salary every month after 60 days service and the company would contribute slightly more.

I was given a list of investors and asked to pick the ones that I wants to manage the pension funds.

Also they said if I was to return to the UK that I would be able to cash in the fund?

Can anyone please advise on the above?

Many thinks

[bdw]

Yes this all sounds normal. The MPF is 5% of your income up to $30k, and then just a flat $1500 per month after this.

[jimbo]

Yes you can cash in the fund if you’re leaving HK and have no intention of returning

[oldenuf2nobeta]

Thanks for the replies, do you only get your contributions back if you leave or your employers chunk too?

Also what can you tell me about global select scheme investment options, looks like some carry more risk than others but give better returns - where do I get the information to make informed decisions?

Thanks again,

[pin]

Original Post Deleted

That's the controversial MPF offset?

[kittykaitak]

You get both your contributions and the employer's. I am not sure how the offset mechanism works with some employers but I know that colleagues who have left my employer (and HK) have received all of their MPF account balance. The money is yours.

[civil_servant]

I've got mine from my employer all paid out by using an MPF scheme, not the ORSO.

However, my wife is on renewable contracts. Usually her MPF contributions are deducted from her contract-completion bonus. I think this may be related to the offset mechanism.

[Edwardstorm]

Original Post Deleted

Must have been a specific contract clause for voluntary MPF contributions made by the employer. If OP’s employer also makes voluntary MPF contributions above the 1.500 HKD a month worth checking his contract. My employer contributes about 7.500 HKD a month voluntarily (voluntary as in ... after negotiations) on top of the 1.500 HKD mandatory but I have no clause in contract allowing employer to claw back (didn’t even know this was an option as the MPF fund is under my control. Are you sure this 10% was on MPF contributions?)

[avocado22]

I work in a multinational and my scheme sounds similar to what Jrkob said. Technically though, your employer MPF contribution is vested at 10% per year of everything above the maximum mandatory employer piece (1500HKD). For high salary this would obviously converge to close to 10%.

I don't think this is anything to do with offsetting, the vesting schedule mirrors how HK government taxes employer retirement contributions.

If OP's company is contributing more then 5%, does this mean it can still be MPF? I thought MPF was fixed 5% from both employer and employee?

[shri]

Sounds like the voluntary component of employer / employee scheme on a vesting schedule -

Original Post Deleted

OP - best to check with your employer on what their schedules and policies are. I know some employers have very generous matching schemes on MPF but they're on a vesting schedule and voluntary.