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Financial and Monetary Affairs
As one of the pillars of retirement protection, the MPF System helps the Hong Kong workforce set aside savings for retirement. Unless exempted, employees and self-employed persons (SEPs) aged 18 to 64 are required to join an MPF scheme. At the end of 2020, about 85 per cent of the employed population were covered by the MPF System or other forms of retirement schemes.
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 early withdrawal of benefits.
Statistics on MPF Schemes and MPF-exempted Occupational Retirement Schemes Ordinance (ORSO) Registered Schemes (year end)
2018
2019
2020
Number of MPF-enrolled participants
(Estimated rate)
Employers
290,500
290,400
306,400
(100%)
(100%)
(100%)
Relevant employees
2,633,300
2,631,400
2,705,100
(100%)
(100%)
(100%)
SEPS
207,800
215,500
229,900
(70%)
(73%)
(78%)
MPF schemes
Number of registered schemes
32
30
27
Number of approved constituent funds
467
441
408
Aggregate NAV ($ billion)
813
969
1,139
MPF-exempted ORSO registered schemes
10
Number of schemes
3,048
2,923
2,840
Number of participating employees
317,308
309,021
301,014
Aggregate NAV ($ billion)
336
312
317
10
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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