An Ordinance to provide for the establishment of non-governmental mandatory provident fund schemes for the purpose of funding benefits on retirement, to provide for contributions to such schemes, to provide for the registration of such schemes, to provide for a regulatory regime in respect thereof, to provide for the creation of a Mandatory Provident Fund Schemes Authority to oversee the administration and management of registered schemes, to exempt certain classes of persons from contributing to registered schemes, to provide for the approval of persons (other than public officers or statutory corporations) as trustees of registered schemes, to provide for the control and regulation of approved trustees, and to make consequential amendments to other Ordinances including pension related Ordinances, and for connected purposes. Note: This Ordinance was originally enacted as Ord. No. 80 of 1995 and had been amended, before its commencement, by Ord. No. 4 of 1998 and other legislation. The commencement dates of all provisions contained in the consolidated version of the original Ordindance as amended by Ord. No. 4 of 1998 are as follows - [Sections 1 to 3, 6 to 6H and 6R to 6T, and Schedules 1A and 1B］ 24 July 1998 L.N. 292 & 293 of 1998 Sections 6I, 6K to 6Q, 17, 46 to 47A and 48 12 March 1999 L.N. 68 & 70 of 1999 Sections 6J, 20 to 22B, 24 to 33B, 35 to 43A, 43D to 45G and 47B, and Schedules 5 and 5A, Schedule 6 (except paragraph 14) and Schedule 8 3 August 1999 L.N. 68 & 70 of 1999 Sections 5, 5A and 6U to 6W, and paragraph 14 of Schedule 6 3 January 2000 L.N. 68 & 70 of 1999 Sections 4, 7 to 16, 17A to 19, 23, 34 to 34C, 43B, 43C and 49, and Schedules 1, 2 to 4, 7 and 9 1 December 2000 L.N. 119 & 120 of 2000] (Originally 80 of 1995) Cap 485 s 1 Short title PART I PRELIMINARY (1) This Ordinance may be cited as the Mandatory Provident Fund Schemes Ordinance. (2) (Omitted as spent) Cap 485 s 2 Interpretation Expanded Cross Reference: 33, 33A, 33B (1) In this Ordinance, unless the context otherwise requires- (Amended 4 of 1998 s. 2) "accrued benefits" (累算权益), in relation to a registered scheme, means the amount of each scheme member's beneficial interest in the registered scheme at any time, including sums derived from the contributions made by or in respect of that scheme member, together with the income or profits arising from any investments thereof, but taking into account any losses in respect thereof; (Amended 2 of 2002 s. 2) "administer" (管理) includes manage and maintain; (Added 4 of 1998 s. 2) "Advisory Committee" (谘询委员会) means the Mandatory Provident Fund Schemes Advisory Committee established by section 6R; (Added 4 of 1998 s. 2) "Appeal Board" (上诉委员会) means the Mandatory Provident Fund Schemes Appeal Board constituted under section 35; "apprentice" (学徒) has the same meaning as in the Apprenticeship Ordinance (Cap 47); "approved trustee" (核准受讬人) means a company or a natural person approved by the Authority as a trustee in accordance with section 20 and, when used in relation to a registered scheme that is administered by 2 or more approved trustees, means (except in sections 33 to 33B) the trustees jointly and severally; (Replaced 4 of 1998 s. 2) "associate" (有联系者), in relation to a company or other body corporate, means a person specified in Schedule 8; "associated company" (有联系公司) has, except in section 12A, the meaning given by Part 3 of Schedule 8; (Added 4 of 1998 s. 2) "Authority" (管理局) means the Mandatory Provident Fund Schemes Authority established by section 6; (Replaced 4 of 1998 s. 2) "authorized person" (获授权人) means a person appointed or authorized by the Authority in writing to exercise or perform functions, or specified functions, under or for the purposes of this Ordinance; (Added 4 of 1998 s. 2) "casual employee" (临时雇员) means a relevant employee who is declared by an order made under subsection (2) to be a casual employee for the purposes of this Ordinance; (Added 4 of 1998 s. 2) "chief executive officer" (行政总裁), in relation to a company, means the person who, either alone or with others, is immediately responsible to the directors of the company for the conduct of the whole business of the company, and includes a person holding office as managing director of the company; (Added 4 of 1998 s. 2) "close relative" (近亲), in relation to a natural person, means- (a) a spouse, former spouse, parent, step-parent, child, step-child, grand parent, grand child, brother, half-brother, sister or half-sister of the person; or (b) a parent, step-parent, child, step-child, grand parent, grand child, brother, half-brother, sister or half-sister of the spouse or a former spouse of the person; (Added 4 of 1998 s. 2)"company" (公司) (a) means- (i) a company within the meaning of the Companies Ordinance (Cap 32); or (ii) an oversea company;(b) includes a corporation in the case of- (i) the definitions of "associated company", "chief executive officer", "controller", "officer", "share" and "voting share"; and (ii) the provisions of section 44(1), section 7(2) of Part 2 of Schedule 1A and Schedule 8; (Replaced 2 of 2002 s. 2)"compensation fund" (补偿基金) means the compensation fund established in accordance with section 17; (Added 4 of 1998 s. 2) "conditions" (条件) means reasonable conditions; (Added 2 of 2002 s. 2) "contract of employment" (雇佣合约) has the same meaning as in the Employment Ordinance (Cap 57), and "employment" (雇用、受雇) shall be construed accordingly; "contribution account" (供款帐户) has the same meaning as in section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap 485 sub. leg.); (Added 29 of 2002 s. 2) "controller" (控权人), in relation to a company, means any of the following persons- (a) the directors of the company; (b) a person in accordance with whose instructions those directors are accustomed to act; (c) the chief executive officer of the company; (d) a natural person who, alone or together with, a close relative, partner or employee of the person, or a company of which the person is a director, or through a nominee, controls at least 15 per cent of the voting shares of the company; (e) another company that, alone or with any associate, or any employee of an associate, of that other company, or through a nominee, controls at least 15 per cent of the voting shares of the first-mentioned company; (Added 4 of 1998 s. 2)"corporation" (法团) means a body corporate which is incorporated in a place outside Hong Kong and is not an oversea company; (Added 2 of 2002 s. 2) "Court" means the Court of First Instance; (Added 4 of 1998 s. 2) "employee" (雇员) has the same meaning as in the Employment Ordinance (Cap 57), other than a person excluded by section 4(2) of that Ordinance, and includes an apprentice and a former employee; "employer" (雇主) means any person who has entered into a contract of employment to employ another person as his employee; "employer sponsored scheme" (雇主营办计划) means a registered scheme membership of which is- (a) in the case of an employer who is not a company, open only to the employees of that employer; or (b) in the case of an employer that is a company, open only to the employees of that company or an associated company; (Replaced 4 of 1998 s. 2. Amended 2 of 2002 s. 2)"exempt person" (获豁免人士) means a person or class of persons construed in accordance with section 4; "functions" (职能) includes powers, authorities and duties; (Added 4 of 1998 s. 2) "governing rules" (管限规则), in relation to a registered scheme, means those rules and provisions contained in a trust instrument or other document relating thereto or that trust instrument and that other document taken together, and governing the establishment and operation of the registered scheme; "the guidelines" (指引) means guidelines issued under section 6H; (Added 4 of 1998 s. 2) "industry" (行业) includes a trade, profession, occupation or calling; (Added 4 of 1998 s. 2) "industry scheme" (行业计划) means a provident fund scheme registered under section 21A; (Added 4 of 1998 s. 2) "Industry Schemes Committee" (行业计划委员会) means the MPF Industry Schemes Committee established by section 6U; (Added 4 of 1998 s. 2) "Managing Director" (行政总监), in relation to the Authority, means the Managing Director appointed under section 6B, and includes any person appointed to act as Managing Director- (a) when that director is absent from Hong Kong or absent through illness or any other reason; or (b) when the office of Managing Director is vacant; (Added 4 of 1998 s. 2)"mandatory contribution" (强制性供款) means- (a) an amount that is required to be paid as a contribution to a registered scheme under section 7A or 7C; or (b) minimum MPF benefits, to which section 5(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.) applies, that have been transferred to a registered scheme; (Replaced 2 of 2002 s. 2)"master trust scheme" (集成信讬计划) means a registered scheme membership of which is open to- (a) the employees of more than one employer; and (b) self-employed persons; and (c) persons who, having accrued benefits in another registered scheme, wish to have those benefits transferred to the first-mentioned scheme and; (d) persons who, having benefits in an ORSO exempted scheme, or an ORSO registered scheme, within the meaning of section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.), wish to have those benefits transferred to the first-mentioned scheme, (Added 2 of 2002 s. 2) but does not include an industry scheme; (Replaced 4 of 1998 s. 2. Amended 2 of 2002 s. 2)"maximum level of relevant income" (最高有关入息水平) means the level of relevant income specified in Schedule 3 above which a mandatory contribution is not required to be paid to a registered scheme; (Replaced 4 of 1998 s. 2) "minimum level of relevant income" (最低有关入息水平) means the level of relevant income specified in Schedule 2 below which level an employee or self-employed person has the option of not participating in a registered scheme; (Amended 4 of 1998 s. 2) "minimum MPF benefits" (最低强制性公积金利益) has the same meaning as in section 1(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.); (Added 2 of 2002 s. 2) "occupational retirement scheme" (职业退休计划) has the same meaning as in the Occupational Retirement Schemes Ordinance (Cap 426); (Added 4 of 1998 s. 2) "officer" (高级人员), in relation to a company, means- (a) a director of the company; or (b) the chief executive officer of the company; (Added 4 of 1998 s. 2)"oversea company" (海外公司) means a company to which Part XI of the Companies Ordinance (Cap 32) applies; (Added 4 of 1998 s. 2) "participating employer" (参与雇主) means the employer of employees who are members or prospective members of a registered scheme; (Added 4 of 1998 s. 2. Amended 2 of 2002 s. 2) "practicable" (切实可行) means reasonably practicable; (Added 29 of 2002 s. 2) "premises" (处所) includes any place and a part of premises or a place; (Added 4 of 1998 s. 2) "preserved account" (保留帐户) has the same meaning as in section 2 of the Mandatory Provident Fund Schemes (General) Regulation (Cap 485 sub. leg.); (Added 2 of 2002 s. 2) "provident fund scheme" (公积金计划) means a scheme governed by a trust- (a) the terms of which are set out in one or more documents; and (Replaced 4 of 1998 s. 2) (b) that- (i) provides for the payment of pecuniary benefits to the members of the scheme when they reach the retirement age, or any other prescribed event occurs in relation to them; or (ii) in the case of members who die before reaching that age or before the occurrence of such an event, provides for the payment of those benefits to the personal representatives or beneficiaries of the estates of those members, (Replaced 4 of 1998 s. 2)and includes a proposed provident fund scheme; "record" (纪录) means any record of information, however compiled, recorded or stored, and includes- (a) any book, a register and any other document containing information; and (b) any disc, tape or other article from which information is capable of being produced; (Added 4 of 1998 s. 2)"registered scheme" (注册计划) means a provident fund scheme registered under section 21 as an employer sponsored scheme or a master trust scheme or registered under section 21A as an industry scheme; (Replaced 4 of 1998 s. 2) "the regulations" (《规例》) means regulations made under section 46 and in force; (Added 4 of 1998 s. 2) "relevant employee" (有关雇员) means an employee of 18 years of age or over and below retirement age; "relevant income" (有关入息) means- (a) in the case of a relevant employee, any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (other than a housing allowance or other housing benefit), expressed in monetary terms, paid or payable by an employer (directly or indirectly) to that relevant employee in consideration of his employment under that contract, but does not include severance payments or long service payments under the Employment Ordinance (Cap 57); (b) in the case of a self-employed person, income of that person as ascertained in accordance with the regulations; (Amended 4 of 1998 s. 2)"remuneration" (酬金) includes travel and subsistence allowances; (Added 4 of 1998 s. 2) "retirement age" (退休年龄), in relation to an employee or self-employed person, means 65 years of age or, if the regulations prescribe an earlier age, that earlier age; (Amended 4 of 1998 s. 2; 2 of 2002 s. 2) "the rules" (《规则》) means rules made under section 47 and in force; (Added 4 of 1998 s. 2) "scheme" (计划) means a provident fund scheme; "scheme member" (计划成员), in relation to a registered scheme, means a person who has a beneficial interest in the registered scheme; "self-employed person" (自雇人士) means a person whose relevant income (otherwise than in the capacity as an employee) derives from his production (in whole or in part) of goods or services in Hong Kong, or his trade in goods or services in or from Hong Kong; "service provider" (服务提供者), in relation to a provident fund scheme, means an investment manager, custodian of scheme assets or other person appointed or engaged by the trustee of the scheme to provide services for the purposes of the scheme, and includes a person to whom the provision of those services is delegated by such a manager, custodian or other person, but does not include a person appointed or so engaged as an auditor, solicitor or actuary; (Added 4 of 1998 s. 2) "share" (股份) means a share in the capital of a company, and includes the stock or any part of the stock of the company; (Added 4 of 1998 s. 2) "spouse" (配偶), in relation to a person, includes a person of the opposite sex with whom the person is cohabiting in a bona fide domestic relationship as man and wife; (Added 4 of 1998 s. 2) "total incapacity" (完全丧失行为能力), in relation to a scheme member, means permanent unfitness to perform the kind of work that the member was last performing before becoming incapacitated; (Added 4 of 1998 s. 2. Amended 29 of 2002 s. 2) "trustee" (受讬人) includes a prospective trustee; "voluntary contribution" (自愿性供款) means a contribution paid to a registered scheme in accordance with section 11; (Added 4 of 1998 s. 2) "voting share" (有表决权股份), in relation to a company, means an issued share in the company that confers a right to vote, not being a right to vote that is exercisable only in one or more of the following circumstances- (a) during a period during which a dividend (or part of a dividend) in respect of the share is in arrears; (b) on a proposal by the company to redeem or purchase its own shares; (c) on a proposal by the company to reduce its share capital; (d) on a proposal that affects rights attached to the share; (e) on a proposal to wind up the company; (f) on a proposal for the disposal of the whole of the company's property, business and undertaking; (g) during the winding up of the company. (Added 4 of 1998 s. 2)"working day" (工作日) means any day other than- (a) a public holiday; (b) a gale warning day or black rainstorm warning day within the meaning of section 71(2) of the Interpretation and General Clauses Ordinance (Cap 1). (Added 2 of 2002 s. 2) (Amended 4 of 1998 s. 2)(2) If relevant employees- (a) are engaged in an industry for which a provident fund scheme is registered as an industry scheme; and (b) employed in that industry by an employer on a day to day basis or for a fixed period of less than 60 days,the Authority may, by order published in the Gazette, declare those employees to be casual employees for the purposes of this Ordinance. (Added 4 of 1998 s. 2) (3) For the avoidance of doubt, it is hereby declared that an amount that is paid as a contribution to a registered scheme contingently on the basis that the amount will later constitute a mandatory contribution to the scheme shall for all purposes be treated as a mandatory contribution to the scheme (and the provisions of this Ordinance shall apply accordingly) unless and until it is certain that the amount will not constitute a mandatory contribution to the scheme. (Added 2 of 2002 s. 2) Cap 485 s 3 Application This Ordinance binds the Government. Cap 485 s 4 Exemptions (1) The persons specified in Part I of Schedule 1 are exempt from the provisions of this Ordinance to the extent described therein. (2) The Chief Executive in Council may, from time to time, specify in Part II of Schedule 1 the persons or classes of persons who shall be exempt from all or part of the provisions of this Ordinance (as identified or contained in the specification), and may vary, alter or repeal that specification. (Amended 4 of 1998 s. 2) (3) Subject to subsections (4) and (5) and section 11(1) and (2), any person entering Hong Kong for the purpose of being employed or self-employed- (Amended 2 of 2002 s. 3) (a) for a limited period only; or (b) who is a member of a provident, pension, retirement or superannuation scheme (however described) of a place outside Hong Kong,shall be exempt from the provisions of this Ordinance. (4) The regulations may make provision for the purposes of this section and may, in particular, specify the circumstances in which the exemption of a person referred to in subsection (3) is to apply. (Replaced 4 of 1998 s. 2) (5) In this section, "limited period" (有限期间) means a period determined for the purposes of this section in accordance with the regulations. (Replaced 4 of 1998 s. 2) Cap 485 s 5 Members of certain occupational retirement schemes to be exempted from this Ordinance Remarks: Consolidated version as amended by 4 of 1998. (1) The Authority may, by certificate in writing, exempt the members, or a class of members, of an occupational retirement scheme and their employer from the operation of all, or any specified, provisions of this Ordinance and, in so doing, may specify circumstances in which the exemption is or is not to apply. (2) The Authority may grant an exemption- (a) either on its own initiative or on the application of the trustee of the occupational retirement scheme concerned or the employer whose employees are members of the scheme; and (b) subject to such conditions as the Authority considers appropriate.(3) If an exemption is granted in respect of an occupational retirement scheme, the provisions of this Ordinance, or the provisions of this Ordinance specified in the exemption certificate, do not apply to the members or relevant class of members of the scheme or to the employer of those members in relation to the scheme. (4) An exemption may be granted in respect of an occupational retirement scheme under this section whether the scheme is a defined contribution scheme or a defined benefit scheme. (5) The regulations may- (a) prescribe the circumstances in which an exemption under this section may be granted; and (b) prescribe requirements that are to be complied with as a condition for the granting of such an exemption; and (c) empower the Authority to revoke such an exemption for failure to comply with any requirements imposed as a condition of granting the exemption. (Replaced 4 of 1998 s. 2) Cap 485 s 5A Register of exempt schemes to be kept Remarks: Consolidated version as amended by 4 of 1998. (1) The Authority must establish and maintain a register of occupational retirement schemes in respect of which an exemption has been granted under section 5. The register may be in such form, and contain such information, as the Authority may determine. (2) The register is to be kept at the head office of the Authority in Hong Kong. (3) Members of the public are entitled, without charge, to inspect the register during the ordinary business hours of the Authority. (Added 4 of 1998 s. 2) Cap 485 s 6 Establishment of Mandatory Provident Fund Schemes Authority PART II MANDATORY PROVIDENT FUND SCHEMES AUTHORITY (1) There is established by this section a corporation with the corporate name of "Mandatory Provident Fund Schemes Authority". (2) The Authority- (a) has perpetual succession; and (b) may take legal proceedings and be proceeded against in its corporate name; and (c) may, for the purpose of enabling it to exercise or perform its functions- (i) acquire, hold and dispose of real and personal property; and (ii) enter into and carry out, any agreement with the Government for the management and control by the Authority of any property held, or managed and controlled, by the Government; and (iii) enter into and carry out, any agreement with the Government for the employment by, or the secondment to, the Authority of any specified public officers or specified class of public officers; and (iv) enter into, carry out, assign or accept the assignment of, vary or rescind, any contract, agreement or other obligation; and(d) may do, and be subject to, all other things that bodies corporate may do and be subject to and that are necessary for, or are incidental to, the exercise of its functions.(3) The Authority is required to have a seal. (Replaced 4 of 1998 s. 2) Cap 485 s 6A Membership of Authority (1) The Authority is to consist of not fewer than 10 directors appointed by the Chief Executive. (2) Of the directors- (a) not fewer than 4 are to be executive directors; and (b) the remainder are to be non-executive directors.(3) Of the non-executive directors- (a) at least 1 but no more than 2 are to be persons who, in the opinion of the Chief Executive, represent the interests of participating employers; and (b) at least 1 but no more than 2 are to be persons who, in the opinion of the Chief Executive, represent the interests of relevant employees.(4) In appointing the directors, the Chief Executive must ensure that- (a) a majority of the directors are non-executive directors; and (b) the number of persons appointed to represent the interests of relevant employees is equal to the number of persons appointed to represent the interests of participating employers.(5) A director must exercise a reasonable degree of care and diligence so as to ensure that the Authority exercises and performs its functions properly. (6) The Authority may exercise or perform any of its functions despite a vacancy in its membership. (7) Schedule 1A has effect with respect to the directors and procedure of the Authority. (Added 4 of 1998 s. 2) Cap 485 s 6B Managing Director of Authority (1) The Chief Executive is to appoint one of the executive directors as the Managing Director of the Authority. (2) The Managing Director- (a) is the administrative head of the Authority and is responsible, subject to the direction of the Authority, for administering the affairs of the Authority; and (b) has, subject to that direction, such other responsibilities as may be assigned by the Authority. (Added 4 of 1998 s. 2) Cap 485 s 6C Chairperson and deputy chairperson of the Authority (1) The Chief Executive is to appoint one of the non-executive directors to be the chairperson of the Authority. (2) The Managing Director is, by virtue of holding that office, the deputy chairperson of the Authority. (3) A person holding office as chairperson of the Authority ceases to hold that office on ceasing to be a director of the Authority. (Added 4 of 1998 s. 2) Cap 485 s 6D Authority may establish committees (1) The Authority may establish committees to give advice and assistance to the Authority in connection with any matter with which the Authority is concerned. (2) The Authority may appoint any person to be a member of a committee. A member of a committee is not required to be a director of the Authority. (3) The Authority may, at any time, remove such a member from office by notice in writing given to the member. A member of a committee may, at any time, resign from membership of the committee by giving notice in writing to the Authority. (4) The procedure for convening meetings of a committee and for the conduct of business at those meetings is to be as determined by the Authority or (subject to any determination of the Authority) by the committee. (5) In exercising its functions, a committee is required to comply with any direction given by the Authority. (Added 4 of 1998 s. 2) Cap 485 s 6E Functions of Authority (1) The functions of the Authority are as follows- (a) to be responsible for ensuring compliance with this Ordinance; (b) to register provident fund schemes as registered schemes; (c) to approve qualified persons to be approved trustees of registered schemes; (d) to regulate the affairs and activities of approved trustees and to ensure as far as reasonably practicable that those trustees administer the registered schemes for which they are responsible in a prudent manner; (e) to make rules or guidelines for the payment of mandatory contributions and for the administration of registered schemes with respect to those contributions; (ea) to consider and propose reforms of the law relating to occupational retirement schemes or provident fund schemes; (Added 2 of 2002 s. 4) (eb) to promote and encourage the development of the retirement scheme industry in Hong Kong, including the adoption of a high standard of conduct and sound prudent business practices by trustees and other service providers; (Added 2 of 2002 s. 4) (f) to exercise such other functions as are conferred or imposed on the Authority by or under this Ordinance or any other Ordinance.(2) The Authority has such ancillary powers as may be necessary to enable it to exercise its functions. (3) The Chief Executive may give directions, either generally or in a particular case, with respect to the exercise by the Authority of its functions. The Authority must comply with any such directions unless they are inconsistent with this Ordinance. (Added 4 of 1998 s. 2) Cap 485 s 6F Authority may delegate functions (1) The Authority may delegate any of its functions (other than this power of delegation) to a committee established under section 6D or to a designated person. (2) In this section- "designated person" (指定人士) means a director or employee of the Authority or a person of a class prescribed by the regulations. (3) Schedule 1B has effect in relation to a delegation under this section. (Added 4 of 1998 s. 2) Cap 485 s 6G Power to appoint staff and consultants (1) The Authority may employ such staff as it requires to exercise or perform its functions. (2) The Authority may, after consultation with the Financial Secretary, fix the salaries, wages and other conditions of employment of its staff. (3) The Authority may enter into arrangements (additional to those provided for by this Ordinance) for the provision of retirement benefits to its staff and their dependants spouses and children. Those arrangements may (but are not required to) include provisions requiring members of the Authority's staff to make contributions towards those benefits from their own funds. (4) The Authority may engage consultants for the purposes of obtaining expert advice. (Added 4 of 1998 s. 2) Cap 485 s 6H Authority may issue guidelines (1) The Authority may issue guidelines for the guidance of approved trustees, service providers, participating employers and their employees, self-employed persons and other persons concerned with this Ordinance. (2) A guideline- (a) may consist of a code, standard, rule, specification or provision relating to provident fund schemes or a class of such schemes; and (b) may apply, incorporate or refer to any document that has been published by a person, either as in force at the time when it is issued under this section or as amended or published from time to time.(3) A guideline may require persons (including persons belonging to a class) specified in the guideline to give to the Authority information or documents of a kind specified in the guideline. The guideline may only specify information or documents of a kind that the Authority reasonably requires for the exercise or performance of its functions. This subsection has effect whether or not regulations are made for the purposes of section 21C (2)(k), 22A(2)(b) or 46(1A)(t). (4) The Authority must publish a guideline issued under this section in the Gazette or in some other publication determined by the Authority. (5) The Authority may amend or revoke a guideline issued under this section. Subsection (4) applies to the amendment or revocation of a guideline in the same way as it applies to the issue of a guideline. (6) A person does not incur a civil or criminal liability only because the person has contravened a guideline issued under this section. However, if in any legal proceedings the court is satisfied that such a guideline is relevant to determining a matter that is in issue in the proceedings- (a) the guideline is admissible in evidence in the proceedings; and (b) proof that the person contravened or did not contravene the guideline may be relied on by any party to the proceedings as tending to establish or negate the matter.(7) In any legal proceedings, a document that purports to be a copy of a guideline issued under this section is, in the absence of evidence to the contrary, to be presumed to be a true copy of the guideline. (Added 4 of 1998 s. 2) Cap 485 s 6I Authority to prepare annual report (1) As soon as practicable after the end of each financial year of the Authority, the Authority must prepare a report as to- (a) the operation of this Ordinance during that year; and (b) the activities of the Authority during that year.(2) As soon as practicable after preparing a report in accordance with this section, the Authority must deliver the report to the Financial Secretary, together with- (a) the financial statements of the Authority for the financial year to which the report relates; and (b) the report of the Authority's auditor on those statements.(3) The Financial Secretary may publish the documents delivered in accordance with subsection (2) in such manner as the Financial Secretary thinks fit. (Added 4 of 1998 s. 2) Cap 485 s 6J Authority to prepare corporate plan (1) The Authority must, before the end of each financial year of the Authority, prepare a corporate plan for its next financial year. (2) A corporate plan must specify- (a) the objectives of the Authority's activities for the financial year concerned; and (b) the nature and scope of the activities to be undertaken in order to achieve those objectives; and (c) a budget of estimated expenditure for achieving those objectives.(3) Before completing the preparation of a corporate plan, the Authority must submit a draft of the plan for approval by the Financial Secretary and must take into account any comments made by the Financial Secretary on the draft. (4) As soon as practicable after completing the preparation of a corporate plan, the Authority must deliver the plan to the Financial Secretary. (5) The Financial Secretary may publish the corporate plan delivered in accordance with subsection (4) in such manner as the Financial Secretary thinks appropriate. (6) The Authority may also, if it thinks fit, attach to a corporate plan a proposed corporate plan for 1 or more financial years following the financial year to which the first-mentioned plan relates. (Added 4 of 1998 s. 2) Cap 485 s 6K Preparation of other reports by Authority (1) The Authority may, whenever it considers necessary, provide the Financial Secretary with a report as to any improvements that it considers to be necessary for the effective or efficient operation of the Authority. (2) The Financial Secretary may, from time to time, request the Authority to provide the Financial Secretary with a report as to- (a) the operation of this Ordinance; or (b) the activities of the Authority.(3) The Authority must comply with a request made under subsection (2) as soon as practicable after receiving it. (Added 4 of 1998 s. 2) Cap 485 s 6L Financial year of the Authority Financial provisions The financial year of the Authority is- (a) the period beginning with the commencement of this section and ending with 31 March next following; and (b) the period of 12 months ending on 31 March in each subsequent year. (Added 4 of 1998 s. 2) Cap 485 s 6M MPFA Administration Account (1) The Authority must establish and maintain at a bank located in Hong Kong an account called in English the "MPFA Administration Account" and in Chinese "强制性公积金计划管理局行政帐户". (2) There is payable into the Account all money received by the Authority (other than money recovered by the Authority for the benefit of a scheme member), including interest received in respect of investments and all money directed to be paid into the Account by this or any other Ordinance. (3) There is payable from the Account all payments made on account of the Authority or otherwise required to meet the expenditure incurred in relation to the functions of the Authority (including the remuneration of the Managing Director and the other staff of the Authority) and all money directed to be paid from the Account by this or any other Ordinance. (Added 4 of 1998 s. 2) Cap 485 s 6N Authority to keep proper accounting records (1) The Authority must keep such accounting records as correctly explain its financial transactions and financial position and so that- (a) true and fair financial statements can be prepared from time to time; and (b) those statements can be conveniently and properly audited in accordance with section 6P.(2) The Authority must ensure that the following financial statements are prepared as soon as practicable after the end of each financial year of the Authority- (a) an income and expenditure account that gives a true and fair view of the Authority's income and expenditure for that year; (b) a balance sheet as at the end of that year that provides a true and fair view of the Authority's financial position as at the end of that year.(3) The Authority must ensure that the financial statements comply with any accounting standards notified to the Authority in writing by the Financial Secretary. (Added 4 of 1998 s. 2) Cap 485 s 6O Authority to appoint auditor (1) As soon as practicable after the commencement of this section, the Authority must appoint an auditor to audit the accounts of the Authority. (2) As soon as practicable after a vacancy occurs in the office of auditor, the Authority must appoint another auditor to fill the vacancy. (3) An appointment under this section does not take effect until it is approved by the Financial Secretary. (4) The Authority may terminate the appointment of an auditor of the Authority but only with the prior approval of the Financial Secretary. (Added 4 of 1998 s. 2) Cap 485 s 6P Authority's financial statements to be audited (1) Not later than 6 months after the end of each financial year of the Authority, or such longer period as the Financial Secretary approves in writing, the Authority must submit the financial statements prepared for the financial year to the Authority's auditor for auditing. (2) As soon as practicable after receiving financial statements submitted by the Authority, the Authority's auditor must audit the statements and prepare a report of the audit. (3) The auditor's report must state whether or not the financial statements are, in the auditor's opinion, properly drawn up so as to provide a true and fair view of the matters referred to in section 6N(2) and in accordance with the accounting standards (if any) notified under section 6N(3) and, if not, the reasons for that opinion. (4) The Authority's auditor is entitled- (a) to have access at all reasonable times to the Authority's accounting records; and (b) to require the Managing Director and any member of the staff of the Authority to provide the auditor with such explanations and information as the auditor considers necessary for the purpose of conducting the audit.(5) As soon as practicable after completing the audit and preparing the auditor's report, the Authority's auditor must- (a) attach the report to, or endorse the report on, the financial statements that were audited; and (b) deliver those statements and the report to the Authority.(6) On receiving the audited financial statements and auditor's report on those statements, the Authority must deliver a copy of those documents to the Financial Secretary. (Added 4 of 1998 s. 2) Cap 485 s 6Q Investment of surplus funds The Authority may invest money held in the MPFA Administration Account in any manner in which trust funds may be lawfully invested or in any other manner approved by the Financial Secretary. (Added 4 of 1998 s. 2) Cap 485 s 6QA Authority may borrow money The Authority may, with the approval of the Financial Secretary, borrow money temporarily, on such security or other conditions as it considers expedient, for the purposes of- (a) the settlement of transactions in securities; (b) acquiring an overdraft banking facility; (c) dealing with an emergency; or (d) dealing with any other circumstances which could not have been foreseen. (Added 2 of 2002 s. 5) Cap 485 s 6R Establishment of Advisory Committee Advisory Committee (1) There is established by this section a board called in English the "Mandatory Provident Fund Schemes Advisory Committee" and in Chinese "强制性公积金计划谘询委员会". (2) The Advisory Committee is to consist of- (a) an executive director of the Authority designated by the Authority; and (b) no fewer than 9, and no more than 11, other members appointed by the Chief Executive.(3) The Chief Executive is to appoint one of the members of the Advisory Committee to be its chairperson and another of its members to be its deputy chairperson. (4) In appointing persons under subsection (2)(b), the Chief Executive must ensure that included among those persons are- (a) one or more persons who, in the Chief Executive's opinion, have knowledge of, or experience in, investments and financial management; and (b) one or more persons who, in the Chief Executive's opinion, have knowledge of, or experience in, the conduct of retirement benefit schemes; and (c) one or more persons who, in the Chief Executive's opinion, represent the interests of participating employers; and (d) one or more persons who, in the Chief Executive's opinion, represent the interests of relevant employees,and that the number of persons appointed to represent the interests of relevant employees is equal to the number of persons appointed to represent the interests of participating employers. (5) The Chief Executive must consult with the Authority before appointing the persons referred to in subsection (2)(b). (6) The Authority must publish in the Gazette a notice of the appointment of members of the Advisory Committee. (7) The appointed members hold office for such periods, and on such terms, as the Chief Executive may specify in the documents by which they are appointed. (8) The Chief Executive may, at any time, remove an appointed member from office by notice given to the member in writing. (9) An appointed member may, at any time, resign from membership of the Advisory Committee by notice in writing given to the Chief Executive. (Added 4 of 1998 s. 2) Cap 485 s 6S Meetings of the Advisory Committee (1) The procedure for convening meetings of the Advisory Committee and for conducting business at those meetings is, subject to this section, to be as determined by that Committee. The chairperson is to convene the first meeting of the Advisory Committee. (2) A meeting of the Advisory Committee is to be presided over by- (a) the chairperson; and (b) in the absence of the chairperson, the deputy chairperson; and (c) in the absence of the chairperson and deputy chairperson, a member elected by the members present at the meeting.(3) The quorum for a meeting of the Advisory Committee is a majority of its members for the time being. (Added 4 of 1998 s. 2) Cap 485 s 6T Functions of Advisory Committee (1) The functions of the Advisory Committee are- (a) to make recommendations to the Authority as to the operation of this Ordinance and the effectiveness or efficiency of the Authority; and (b) to advise the Authority with respect to any matter referred to that Committee by the Authority.(2) The Advisory Committee has such ancillary powers as may be necessary to enable it to exercise its functions. (3) The Advisory Committee may exercise its functions at the request of the Authority or, with the approval of the Financial Secretary, on its own initiative. (Added 4 of 1998 s. 2) Cap 485 s 6U Establishment of Industry Schemes Committee Remarks: Consolidated version as amended by 4 of 1998. Industry Schemes Committee (1) There is established for the purposes of this Ordinance a committee called in English the "MPF Industry Schemes Committee" and in Chinese "强制性公积金行业计划委员会". (2) The Industry Schemes Committee is to consist of the following members- (a) a chairperson; (b) at least 1, but no more than 2, representatives of the approved trustee of each industry scheme nominated by that trustee; (c) an executive director of the Authority designated by the Authority; (d) not fewer than 6 other persons.(3) The members (other than the member referred to in subsection (2)(c)) are to be appointed by the Financial Secretary. (4) The Financial Secretary must consult with the Authority before appointing the members referred to in subsection (2)(a) and (d). (5) In appointing the persons referred to in subsection (2)(d), the Financial Secretary must ensure that included among those persons are- (a) one or more persons who, in the Financial Secretary's opinion, represent the interests of participating employers; and (b) one or more persons who, in the Financial Secretary's opinion, represent the interests of relevant employees,and that the number of persons appointed to represent the interests of relevant employees is equal to the number of persons appointed to represent the interests of participating employers. (6) The Authority must publish in the Gazette a notice of the appointment of members of the Industry Schemes Committee. (7) The appointed members hold office for such periods, and on such terms, as the Financial Secretary may specify in the documents by which they are appointed. (8) The Financial Secretary may, at any time, remove an appointed member from office by notice given to the member in writing. (9) An appointed member may, at any time, resign from membership of the Industry Schemes Committee by notice in writing given to the Financial Secretary. (Added 4 of 1998 s. 2) Cap 485 s 6V Meetings of Industry Schemes Committee Remarks: Consolidated version as amended by 4 of 1998. (1) The procedure for convening meetings of the Industry Schemes Committee and for conducting business at those meetings is, subject to this section, to be as determined by that Committee. The chairperson is to convene the first meeting of the Committee. (2) The quorum for a meeting of the Industry Schemes Committee is a majority of the members and must include- (a) for each industry scheme, at least 1 of the members referred to in section 6U(2)(b); and (b) the member referred to in section 6U(2)(c).(3) A meeting of the Industry Schemes Committee is to be presided over by- (a) the chairperson; and (b) in the absence of the chairperson, a member elected by the members present at the meeting. (Added 4 of 1998 s. 2) Cap 485 s 6W Functions of Industry Schemes Committee Remarks: Consolidated version as amended by 4 of 1998. (1) The functions of the Industry Schemes Committee are as follows- (a) to make recommendations to the Authority as to a matter relating to the operation of industry schemes generally or to the operation of any particular industry scheme; (b) to examine reports provided by the Authority and by approved trustees of industry schemes to ascertain whether or not those trustees are complying with the requirements and standards that apply to industry schemes; (c) to determine whether or not the provisions of this Ordinance that apply to industry schemes in particular are effective and, if they are found to be ineffective, to advise the Authority as to the measures that need to be taken to render them effective; (d) to advise the Authority as to ways in which the administration or operation of industry schemes could be improved; (e) to advise the Authority as to ways in which the interests of members of industry schemes could be protected or better protected.(2) The Industry Schemes Committee has such ancillary powers as may be necessary to enable it to exercise its functions. (3) The Industry Schemes Committee may exercise its functions at the request of the Authority or, with the approval of the Financial Secretary, on its own initiative. (Added 4 of 1998 s. 2) Cap 485 s 7 Employer to arrange for employees to become scheme members, etc. PART III CONTRIBUTIONS (1) Every employer of a relevant employee must take all practicable steps to ensure that the employee becomes a member of a registered scheme within the permitted period after the relevant time. (1A) Every employer of a relevant employee must take all practicable steps to ensure that, after the expiration of the permitted period- (a) if the employer has complied with subsection (1) in respect of the employee, the employee continues to be a member of a registered scheme throughout his employment with that employer; (b) if the employer has not complied with subsection (1) in respect of the employee, the employee becomes a member of a registered scheme and thereafter continues to be a member of a registered scheme throughout his employment with that employer. (Added 29 of 2002 s. 3)(2) Nothing in this section prevents an employer of 2 or more relevant employees from procuring for those employees membership in different registered schemes. (3) For the purposes of subsection (1)- (a) the permitted period is the period specified by the Authority by notice published in the Gazette for the purposes of this section; and (b) the relevant time is- (i) in the case of an employer who is employing a relevant employee at the commencement of this section, the time of that commencement; and (ii) in the case of an employer who enters into a contract of employment with a relevant employee after that commencement, the beginning of the date on which the employment begins. (Amended 2 of 2002 s. 6) (Replaced 4 of 1998 s. 2) Cap 485 s 7A Employer and relevant employees required to contribute to registered scheme Remarks: For the transitional provision relating to the amendments made by the Mandatory Provident Fund Schemes (Amendment) (No. 2) Ordinance 2002 (29 of 2002), see section 15 of that Ordinance. (1) An employer who, at the commencement of this section, is employing a relevant employee must, for each contribution period occurring after that commencement- (a) from the employer's own funds, contribute to the relevant registered scheme the amount determined in accordance with subsection (3); and (b) subject to subsection (7), deduct from the employee's relevant income for that period as a contribution by the employee to that scheme the amount determined in accordance with subsection (4).(2) An employer who enters into a contract of employment with a relevant employee after the commencement of this section must, for each contribution period occurring after the commencement of the employment- (a) from the employer's own funds, contribute to the relevant registered scheme the amount determined in accordance with subsection (3); and (b) subject to subsection (7), deduct from the employee's relevant income for that period as a contribution by the employee to the scheme the amount determined in accordance with subsection (4).(3) For the purposes of subsections (1)(a) and (2)(a), the amount to be contributed by an employer for a contribution period is- (a) in the case of a relevant employee (other than a casual employee who is a member of an industry scheme), an amount equal to the prescribed percentage of the employee's relevant income for that period; and (b) in the case of a casual employee who is a member of an industry scheme, an amount determined by reference to a scale specified in an order made in accordance with subsection (6).(4) For the purposes of subsections (1)(b) and (2)(b), the amount that an employer is required to deduct in respect of a relevant employee for a contribution period is- (a) in the case of a relevant employee (other than a casual employee who is a member of an industry scheme), an amount equal to the prescribed percentage of the employee's relevant income for that period; and (b) in the case of a casual employee who is a member of an industry scheme, an amount determined by reference to a scale specified in an order made in accordance with subsection (6).(5) For the purposes of subsections (3)(a) and (4)(a), the prescribed percentage is 5 per cent or, if some other percentage is prescribed by the regulations, that other percentage. The regulations may prescribe different percentages for those purposes. (6) For the purposes of subsections (3)(b) and (4)(b), the Authority must, as the occasion requires, prescribe by order published in the Gazette scales of amounts of contributions by reference to amounts of relevant income of casual employees who are members of industry schemes. (7) An employer must not, in respect of an employee (not being a casual employee) whose wage period- (a) is not more than 1 month, make a deduction under subsection (2)(b) in respect of the employee's relevant income earned for any wage period that commences on or before the 30th day of employment after the relevant time; (b) is more than 1 month, make a deduction under subsection (2)(b) in respect of the employee's relevant income earned for the period commencing from the relevant time and ending on the last day of the calendar month in which the 30th day of employment after the relevant time falls. (Replaced 29 of 2003 s. 4)(8) An employer must ensure that contributions required to be made in accordance with this section in respect of an employee of the employer are paid to the approved trustee of the registered scheme of which the employee is a member within the period and in the manner prescribed by the regulations. (9) A relevant employee does not have a claim against the employee's employer only because that employer has, in accordance with this section, deducted amounts from the employee's income and has paid those amounts to the approved trustee of a registered scheme. However, nothing in this subsection affects any entitlement that the employee has in respect of those amounts under the rules governing the scheme. (10) In this section- "contribution period" (供款期)- (a) in relation to an employer of a relevant employee (not being a casual employee), means each period for which the employer pays or should pay relevant income to the employee, and includes such a period occurring within, or that coincides with, the first 60 days of employment after the relevant time; and (b) in relation to a relevant employee (not being a casual employee) whose wage period- (i) is not more than 1 month, means each period for which the employer pays or should pay relevant income to the employee, but does not include any wage period commencing on or before the 30th day of employment after the relevant time; (ii) is more than 1 month, means each period for which the employer pays or should pay relevant income to the employee, but does not include the period commencing from the relevant time and ending on the last day of the calendar month in which the 30th day of employment after the relevant time falls; and (Replaced 29 of 2002 s. 4)(c) in relation to an employer and a relevant employee who is a casual employee, means each period for which the employer pays or should pay relevant income to the employee; (Amended 2 of 2002 s. 7)"relevant time" (有关时间) has the same meaning as in section 7(3); (Amended 29 of 2002 s. 4) "wage period" (工资期), in relation to an employee and his employer, means the period for which the employee is paid, or should be paid, relevant income by the employer. (Added 29 of 2002 s. 4) (11) This section is subject to sections 9 and 10. (Added 4 of 1998 s. 2) Cap 485 s 7B Sections 7 and 7A not to apply to certain employees Sections 7 and 7A do not, except in the case of a casual employee, apply to or in respect of an employee who is employed by an employer for less than 60 days. (Added 4 of 1998 s. 2) Cap 485 s 7C Duty of self-employed person to become scheme member (1) Every self-employed person- (a) must, within the permitted period after the relevant time, become a member of a registered scheme; and (b) must, in accordance with the provisions of the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485 sub. leg.), before the end of each contribution period, pay to the approved trustee of the scheme from the person's own funds for the person's own benefit a contribution equal to the prescribed percentage of the person's relevant income. (Amended 2 of 2002 s. 8)(2) In this section- "contribution period" (供款期) means a period prescribed by the regulations as a contribution period; "permitted period" (特准限期) means the period specified by the Authority by notice published in the Gazette for the purposes of this section; "the relevant time" (有关时间) means- (a) in the case of a person who is a self-employed person at the commencement of this section, the time of that commencement; or (b) in the case of a person who becomes a self-employed person after that commencement, the beginning of the date on which the person becomes self-employed; (Amended 2 of 2002 s. 8)(3) For the purposes of subsection (1)(b), the prescribed percentage is 5 per cent or, if some other percentage is prescribed by the regulations, that other percentage. The regulations may prescribe different percentages for those purposes. (4) For the purposes of this section, the regulations may- (a) require self-employed persons to report their relevant income to the Authority; and (b) prescribe the matters that must be included in those reports.(5) This section is subject to sections 9 and 10. (6) This section does not apply to a self-employed person who is- (a) less than 18 years of age; or (b) of or more than retirement age. (Added 2 of 2002 s. 8) (Added 4 of 1998 s. 2) Cap 485 s 8 (Repealed 4 of 1998 s. 2) Cap 485 s 9 Minimum level of income for contribution purposes A relevant employee or self-employed person whose relevant income is less than the minimum level of relevant income specified in Schedule 2 is not required to contribute in relation to a registered scheme but, in the case of a relevant employee, may by notice in writing to his employer elect to do so. (Amended 4 of 1998 s. 2) Cap 485 s 10 Maximum level of income for contribution purposes (1) A relevant employee or self-employed person whose relevant income is more than the maximum level of relevant income specified in Schedule 3 is not required to contribute in relation to a registered scheme in respect of the excess relevant income but, in the case of a relevant employee, may by notice in writing to his employer elect to do so. (Amended 4 of 1998 s. 2) (2) If a relevant employee referred to in subsection (1) elects to make contributions to a registered scheme in respect of the employee's excess relevant income, the employee's employer- (a) must give effect to the election by making deductions and paying contributions in respect of the employee in accordance with section 7A; and (b) may also make contributions to the scheme in respect of that excess relevant income, but is not obliged to do so. (Replaced 4 of 1998 s. 2) Cap 485 s 10A Authority to conduct review of minimum and maximum levels of relevant income every 4 years (1) The Authority must, not less than once in every period of 4 years beginning with the commencement of this section, conduct a review of the minimum level of relevant income and the maximum level of relevant income to ascertain whether or not there are grounds to amend Schedule 2 or 3 or Schedules 2 and 3. (2) Without limiting the factors which the Authority may take into account for the purposes of conducting a review mentioned in subsection (1), the Authority must take into account- (a) in respect of the minimum level of relevant income, 50 per cent of the monthly median employment earnings prevailing at the time of the review as compiled from the General Household Survey conducted by the Census and Statistics Department; and (b) in respect of the maximum level of relevant income, monthly employment earnings at 90th percentile of the monthly employment earnings distribution prevailing at the time of the review as compiled from the General Household Survey conducted by the Census and Statistics Department. (Added 29 of 2002 s. 5) Cap 485 s 11 Voluntary contributions (1) The employer of a person may arrange for the person to join and pay contributions to a registered scheme notwithstanding that the person is less than 18 years of age or is of or more than retirement age or is exempted under section 4(3). The employer may pay contributions to the scheme in respect of the person, but is not obliged to do so, whether or not the person pays contributions to the scheme whilst being of that age or is exempted under section 4(3). (Replaced 2 of 2002 s. 9) (2) A self-employed person may join and pay contributions to a registered scheme notwithstanding that the person is less than 18 years of age or is of or more than retirement age or is exempted under section 4(3). (Replaced 2 of 2002 s. 9) (3) A relevant employee may pay contributions to a registered scheme exceeding the amount of contribution deductible in respect of the employee under section 7A(1)(b) or (2)(b). (4) An employer may pay contributions to a registered scheme in respect of a relevant employee employed by the employer exceeding the amount of contribution required by section 7A(1)(a) or (2)(a) to be paid in respect of the employee, but is not obliged to do so, even if the employee continues to pay contributions to the scheme. (5) A self-employed person may pay contributions to a registered scheme exceeding the amount of contribution payable in respect of the person under section 7C. (6) A relevant employee or a self-employed person whose relevant income is less than the minimum level of relevant income specified in Schedule 2 may nevertheless contribute to a registered scheme. (7) Any contributions- (a) paid to a registered scheme as provided by this section; or (b) consisting of any benefits, other than minimum MPF benefits to which section 5(1) of Schedule 2 to the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.) applies, of a member of an ORSO exempted scheme, or an ORSO registered scheme, within the meaning of section 2(1) of the Mandatory Provident Fund Schemes (Exemption) Regulation (Cap 485 sub. leg.), transferred to a registered scheme,are voluntary, but are subject to the governing rules of the scheme. (Replaced 2 of 2002 s. 9) (8) The provisions of this Ordinance (sections 12, 13, 14 and 15(1) to (3) excepted), and the governing rules of the scheme (in so far as those rules are not inconsistent with this Ordinance), apply to accrued benefits derived from voluntary contributions paid to a registered scheme in the same way as they apply to accrued benefits that are derived from mandatory contributions. (9) The regulations may provide for all or any of the following matters- (a) the vesting of voluntary contributions in the scheme member concerned; (b) the preservation of accrued benefits derived from voluntary contributions; (c) the transfer from one registered scheme to another or from one account within a registered scheme to another account within the same scheme of accrued benefits derived from voluntary contributions; (d) the payment to or in respect of a scheme member of accrued benefits derived from voluntary contributions. (Replaced 4 of 1998 s. 2) Cap 485 s 12 Contributions to vest in scheme members as accrued benefits (1) Subject to section 12A, a contribution in respect of a member of a registered scheme vests in the member as accrued benefits as soon as it is paid to the approved trustee of the scheme. (2) Subject to subsection (2A) and section 12A, income or profits derived from the investment of the accrued benefits of a member of a registered scheme by or on behalf of the approved trustee of the scheme also (after taking into account any loss arising from any such investment) vest in the member as accrued benefits as soon as they are received by that trustee. (Amended 29 of 2002 s. 6) (2A) The reference to income or profits in subsection (2) does not include interest derived from the placing on deposit of- (a) contributions or benefits- (i) received by the approved trustee of a registered scheme in respect of a member of the scheme; and (ii) during the period that the payment of the contributions or benefits into the member's account is pending;(b) benefits- (i) moved from a constituent fund; and (ii) during the period that the investment of the benefits into another constituent fund is pending; and(c) benefits- (i) received from a constituent fund; and (ii) during the period that- (A) withdrawal of the benefits from the registered scheme concerned is pending; or (B) transfer of the benefits to another registered scheme is pending. (Added 29 of 2002 s. 6)(2B) Interest referred to in subsection (2A) must be retained by the approved trustee of the registered scheme concerned- (a) for the payment of any administrative expenses of the scheme; or (b) as income of the scheme,for the benefit of scheme members. (Added 29 of 2002 s. 6) (3) The total amount of accrued benefits vested in a scheme member from time to time is to be calculated as provided by the rules. (Replaced 4 of 1998 s. 2) Cap 485 s 12A Certain amounts relating to severance payments and long service payments to be paid from accrued benefits (1) If- (a) an employer has paid to or in respect of an employee a severance payment or long service payment in accordance with the Employment Ordinance (Cap 57), or a part of such a payment; and (b) accrued benefits are held in a registered scheme in respect of the employee; and (c) a part of those benefits is attributable to contributions paid to the scheme by the employer in accordance with this Ordinance,the employer may make an application in writing to the approved trustee of the scheme for payment of an amount under subsection (2). (2) As soon as practicable after receiving an application under subsection (1), the approved trustee of the registered scheme concerned must, on being satisfied as to the employer's entitlement to a payment under this subsection- (a) if the severance payment or long service payment paid to the employee is not more than the amount of the part of the employee's accrued benefits that is attributable to the employer's contributions, pay to the employer from those benefits an amount equal to the amount of that severance payment or long service payment; or (b) if that severance payment or long service payment is more than the amount of the part of the employee's accrued benefits that is attributable to the employer's contributions, pay to the employer from those benefits an amount equal to the amount of that part.This subsection is subject to subsection (5). (3) If- (a) an employer has not paid the whole of a severance payment or long service payment to or in resp
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