ENG-2019 — Page 112

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Financial and Monetary Affairs

The MPF System is employment-based. An employer must provide 5 per cent of an employee's relevant income (RI) as mandatory contributions for the employee, subject to a maximum RI level. Employees have to make the same amount of contributions for themselves unless their Rls are below the minimum level. SEPs must also contribute 5 per cent of their Rls, subject to the minimum and maximum levels.

MPF benefits, comprising accumulated mandatory contributions and investment returns, must be preserved until a scheme member reaches the age of 65 or meets a statutory condition for an early withdrawal of benefits.

Statistics on MPF Schemes and MPF-exempted Occupational Retirement Schemes Ordinance (Orso) Registered Schemes (year end)

2017

2018

2019

Number of MPF-enrolled participants

(Estimated rate)

Employers

280,200

290,500

290,400

(100%)

(100%)

(100%)

Relevant employees

2,581,100

2,633,300

2,631,400

(100%)

(100%)

(100%)

SEPS

205,000

207,800

215,500

(70%)

(70%)

(73%)

MPF schemes

Number of registered schemes

32

32

30

Number of approved constituent funds

469

467

441

Aggregate NAV ($ billion)

844

813

969

MPF-exempted Orso registered schemes12

Number of schemes

3,195

3,048

2,923

Number of participating employees

329,021

317,308

309,021

Aggregate NAV ($ billion)

301

336

312

MPF schemes are managed privately and regulated. At the year end, there were 14 active approved MPF trustees providing MPF schemes and funds and 34,540 registered MPF intermediaries engaging in regulated activities such as selling and advising on MPF schemes.

MPF-exempted Orso registered schemes are occupational retirement schemes set up voluntarily by employers and registered under the ordinance before the launch of the MPF System, and subsequently granted exemption from MPF requirements.

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