Welcome to : MPF Seminar for SCE Budget Holders and Course Administrators

1. Welcome to :MPF Seminar for SCE Budget Holders and Course Administrators Helen Leung Finance Office 22 November 2000

2. Agenda • Introduction to MPFO • HKBU Arrangement for Part-time Staff • One Employer-Employee Relationship • Different Situation: • Single Contract • Multiple Contract • Concurrent Appointment with HKBU • Retirement Benefit Transfer upon Termination • Hotlines • Question & Answer

3. The MPFO - Introduction • Will come into effect on 1.12.2000 • It is an employment-related contribution system • Covers all employees of age 18 to 65 with a few exemptions • Include full-time & part-time employees working for 60 days or more

4. MPFO - Exempted Persons • Employees who, at 1.12.2000, have attained 64 years of age • Members of MPF-exempted ORSO schemes • People from overseas who enter HK for employment for < 1 year, or who are covered by overseas retirement schemes

5. MPFO - Employee Contribution • Mandatory = 5% of relevant income • Starts from 31st day of employment • If relevant income < $4,000 ==> contribution is optional • If relevant income > $20,000 ==> maximum contribution is $1,000 • Any amount > mandatory will be voluntary

6. MPFO - Employer Contribution • Mandatory = 5% of relevant income • Starts from 1st day of employment • If relevant income > $0 ==> contribution is required • If relevant income > $20,000 ==> maximum contribution is $1,000 • Any amount > mandatory will be voluntary

7. MPFO - Relevant Income Relevant Income includes: • Basic salary • Cash allowances • Gratuity • Overtime pay Excludes housing benefits

8. MPFO - Withdrawal of Benefits • Attain the age of 65 • Retire between age 60 & 65 • Death or total disability • Depart from HK permanently (once only) • Small balance [<$5,000] and no mandatory contribution for past 12 months

9. HKBU Arrangement for Part-time Staff • Existing no superannation benefit or gratuity • Must enrol MPF with effect from 1 December 2000 • For staff who has a full- time contract and a part-time contract , part-time contract will follow full-time contract • Mandatory University Contribution (5% of relevant income but subject to $1,000 per month) are charged to staff cost budget

10. One Employer-Employee Relationship Based on one Employer-Employee Relationship One MPF Account for one staff member

11. Mandatory Contr’n 強制性供款 Staff Relevant Income 有關入息 University 職員 大學 Contract A 合約 A $3,000 $0 $150 Take Home Amount = $3,000 可使用金額 Different Situation :Single Contract - Scenario 1

12. University 大學 Different Situation :Single Contract - Scenario 2 Mandatory Contr’n 強制性供款 Relevant Income 有關入息 Staff 職員 Contract A 合約 A $22,000 $1,000 $1,000 Take Home Amount = $21,000 可使用金額

13. Mandatory Contr’n 強制性供款 Relevant Income 有關入息 Staff University 職員 大學 Contract A 合約 A $6,000 - $300 Contract B 合約 B $3,000 - $150 Total 總入息 $9,000 $450 $450 Different Situation :Multiple Contract - Scenario 3 Take Home Amount = $8,550 可使用金額

14. University 大學 Staff 職員 Different Situation :Multiple Contract - Scenario 4 Mandatory Contr’n 強制性供款 Relevant Income 有關入息 Contract A 合約 A $750 $15,000 - Contract B 合約 B - $15,000 $750 Total 總入息 $30,000 $1,000 $1,500 Take Home Amount = $29,000 可使用金額

15. Different Situation :Multiple Contract - Scenario 4 (cont’d) Mandatory Contr’n 強制性供款 Voluntary Contr’n 自願供款 Staff University Staff University 大學 職員 大學 職員 One Employer-Employee Relation 一個僱主-僱員關係 $1,000 $0 $1,000 $500

16. Different Situation :Concurrent Appointment with HKBU Employee + Employer SCE PT Contract HKBUFT Contract HKBU 1998Superannuation Fund Contribution

17. Retirement Benefit Transfer upon Termination Keep in Personal Account with Trustee or MPF Scheme (mandatory contr’n) Transfer to specified Trustee or Transfer to the Trustee of new employer MPF Scheme (voluntary contr’n) May opt to cash out

18. MPFO information • http://www.hkbu.hk/~fohome/mpfind.htm

19. MPF Seminar for SCE Budget Holders and Course Administrator Questions and Answers Thank You