• Introduction
• Enrolment
• Contributions
• Investment
• Termination of employment
• Withdrawal of benefits
• Transfer from previous employer

Introduction

1. The University Mandatory Provident Fund (MPF) Scheme was established in December 2000 in accordance with the MPF Schemes Ordinance and its supplementary regulations (MPFSO).

2. Under the MPF scheme, both the employee and the employer must make periodic contributions equivalent to a defined percentage (currently 5%) of the employee's relevant income ("relevant income" for this purpose is subject to a ceiling laid down by legislation, currently at HK$20,000 per month).

3. For its appointees who are eligible to join an MPF scheme, the University has since December 2000 subscribed to the "Fidelity Retirement Master Trust" (FRMT), a registered MPF scheme. It is a pooled scheme operated by an independent corporate trustee and a professional investment management company.

4. Since 1 May 2007, the University has offered MPF members the choice of one more registered MPF scheme, i.e. RCM MPF Plan (RCM Plan) (formerly named AGI Plan), in addition to FRMT.

5. The trustee and administrator of FRMT is HSBC Institutional Trust Service (Asia) Limited. With effect from 1 January 2010, RCM Plan changes to use Bank Consortium Trust Company Limited (BOC) as their trustee and administrator.

6. Members can switch between the two schemes, for not more than once every calendar year. For details, please refer to the change of MPF scheme section of the university's MPF website.

Enrolment

1. Except for exempted persons as stipulated in the MPFSO and as indicated below, an employee is required to be enrolled in a registered MPF scheme:

   • Employees who are employed for less than 60 days

   • Employees who are aged below 18, or 65 or above by the commencement of his/her appointment at the University

   • Employees who are holding an employment visa for an initial period of 13 months

   • Employees who are holding a working visa and are members of overseas retirement schemes

2. Employee who does not fall in one of the above exceptions should complete the Membership Enrolment Form for his / her chosen MPF scheme and return it to the Payroll & Superannuation Unit of Bursary. If the University does not receive the completed Form within 30 days after the commencement of his/her appointment, he/she will be deemed to join the MPF Scheme (i.e. now is RCM Plan) with the lower total fees for the ‘MPF Conservative Fund’ at the time of enrolment.

Contributions

1. Mandatory Contributions

   Mandatory Contributions are calculated on the basis of 10% of an employee's monthly relevant income, with the employer and the employee contributing 5% each.

2. MPF Relevant Income

   MPF relevant income is the sum of an employee's emoluments used for the purpose of calculating the Mandatory Contributions, and for any given contribution period, it includes basic salary, bonuses, overtime payments, gratuities and all other cash allowances (excluding housing benefits, reimbursement of expenses, or severance/ long service payments).

3. Maximum and minimum MPF relevant income levels

   Maximum and minimum MPF relevant income levels for making mandatory contributions are $20,000 and $5,000 per month respectively. If an employee's income is less than $5,000, he or she is not required to make mandatory contribution for that month, but his or her employer must still contribute an amount equal to 5% of his or her relevant income. If an employee's income is more than $20,000, both the employee and the employer are only required to contribute 5% of $20,000, i.e. $1,000 each for that month.

4. Voluntary contribution

   • Both the employer and the employee can make extra, voluntary contributions on top of the mandatory contributions.

   • The employer voluntary contribution, if any, will be equivalent to the respective percentages (as defined in the terms of employment) of his/her basic salary.

   • Employee should complete the part on "Voluntary Contribution Details - Employee" of the Membership Enrolment Form if he/she elects to make voluntary contribution which is also based on the nominated percentage of his/her basic salary.

5. Change of employee voluntary contribution

   Employee may change the nominated percentage of employee voluntary contribution twice a year. The effective date will be the first day of April and October each year. Employee should complete the "Arrangement for / Change of Voluntary Contribution for Employee Form" which can be downloaded from the Bursary website or obtained from the Payroll & Superannuation Unit of Bursary (Tel. 3943 7246). The Form will normally be available two months before the effective date and the completed Form should be sent to the Payroll & Superannuation Unit of Bursary by mail or fax (2603-7890) on or before the 15th day of the month immediately preceding the effective date.

Investment

Members of the University's MPF Scheme can choose from a selection of investment funds available in the chosen MPF Scheme, including MPF Conservative Fund. All investments in FRMT and RCM plan are 'unitised' so that investment income return will be reflected in the changes in 'unit value'. Where a member does not advise the trustee of his investment choices, the ‘MPF Conservative Fund’ will be the default investment option.

For further information on the investment funds, please visit the website of your chosen MPF scheme (FRMT or RCM Plan) or call their Hotline on 2500 1666 (FRMT) / 2298 9000 (RCM Plan).

Termination of employment

1. If a member leaves the University's service, the University will provide written notice to the trustee within 30 days after the member's date of termination of employment, and inform the trustee of the member's date of cessation of employment.

2. Upon receipt of the written notification, the trustee will send a Form MPF(S) - P(M) to the member and the member should elect one of the following options in respect of his/her benefits accrued from the mandatory contributions:

   • Transfer the benefits into a personal account in the his / her chosen MPF scheme (i.e. FRMT or RCM Plan)

   • Transfer the benefits to the master trust scheme provided by the new employer

   • Transfer the benefits to any other master trust scheme

3. Benefits accrued from the voluntary contributions, if any, can be withdrawn in cash or transferred vide one of the above options if the member fulfil the vesting requirement(s) as provided in the governing rules of the MPF scheme.

4. For further information, please call the Hotline on 2500 1666 (FRMT) / 2298 9000 (RCM Plan) or visit the Fidelity website / RCM Plan website.

Withdrawal of benefits

1. Members can withdraw the benefits accrued from the mandatory contributions under the following conditions:

   • Retirement (at age 65)
   • Early retirement (at age 60 or above)
   • Total incapacity
   • Death
   • Permanent departure from Hong Kong
   • Small balance claim of less than $5,000
   
   

2. Members are required to complete a Form MPF(S) - W /Form ROL obtainable from the Hotline on 2500 1666 (FRMT) / 2298 9000 (RCM Plan) or downloaded from the Fidelity website / RCM Plan website. Certain documents are required in addition to the Form. Please check the respective Hotline or Website for further information.

Transfer from previous employer

Members who elect to transfer their accrued MPF benefits from previous employer to their chosen MPF scheme in the university should complete the Form MPF(S) -P(M) except the part on the University's MPF scheme details and send it to the Payroll & Superannuation Unit of Bursary for completion and onward forwarding to the University's scheme trustee for processing . Members could obtain the Form from the previous employer's scheme trustee or download it from the Mandatory Provident Fund Schemes Authority website