Manulife Global Select (MPF) Scheme Employer Operation Manual · 2021. 1. 15. · Brochure of Manulife Global Select (MPF) Scheme. 1.2 Getting Started With Manulife MPF Scheme 1.2.1

Manulife (International) Limited Incorporated in Bermuda with limited liability

Manulife Global Select (MPF) Scheme

Employer Operation Manual

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TABLE OF CONTENTSPREFACE ........................................................................................................ 2

SECTION 1: INTRODUCTION .............................................................................................................. 3

1.1 Our Product .................................................................................................................................... 3

1.2 Getting Started With Manulife MPF Scheme ................................................................................. 3 1.2.1 Welcome Package.................................................................................................................... 3 1.2.2 Notice of Participation (to member) ........................................................................................ 3 1.2.3 Manulife Customer Number (MCN) ....................................................................................... 3 1.2.4 Participation Number ............................................................................................................... 4 1.2.5 Regular Statements & Reports ................................................................................................. 4

2.1 Enrolment of Employees ................................................................................................................ 6 2.1.1 Key Terms ............................................................................................................................... 6 2.1.2 New Employee Enrolment ....................................................................................................... 6 2.1.3 Enrolment for Non-Casual Employees .................................................................................... 8 2.1.4 Enrolment for Casual Employees ............................................................................................ 9 2.1.5 Enrolment for Expatriate Employee ........................................................................................ 9 2.1.6 Points to Note ........................................................................................................................ 10

2.2. Defining Relevant Income and Contribution ............................................................................... 11 2.2.1 Key Terms ............................................................................................................................. 11 2.2.2 Relevant Income .................................................................................................................... 12 2.2.3 Mandatory Contributions ....................................................................................................... 15 2.2.4 Voluntary Contributions ........................................................................................................ 16 2.2.5 Points to Note ........................................................................................................................ 17

2.3 Contribution Reporting & Remittance .......................................................................................... 17 2.3.1 Key Terms ............................................................................................................................. 17 2.3.2 Contribution Data Reporting Methods .................................................................................. 18 2.3.3 Payment Methods .................................................................................................................. 21 2.3.4 Check Allocation Status ........................................................................................................ 23 2.3.5 Contribution Records ............................................................................................................. 23 2.3.6 Calculation Discrepancies & Late Contributions .................................................................. 24 2.3.7 Tax Deduction Entitlement .................................................................................................... 26 2.3.8 Points to Note ........................................................................................................................ 26

2.4 Termination of Membership ......................................................................................................... 28 2.4.1 Reporting of Member Termination ........................................................................................ 28 2.4.2 Transfer of Accrued Benefits by Employee........................................................................... 29 2.4.3 Withdrawal of Accrued Benefits ........................................................................................... 31 2.4.4 Offsetting Employer's Contribution Against Long Service Payment / Severance Payment .. 32 2.4.5. Unvested Employer's Withdrawal Credits ............................................................................ 32 2.4.6. Last Contribution for Terminated Employee ........................................................................ 33 2.4.7 Last Contribution for Employee Attaining Age 65 ................................................................ 33 2.4.8 Points to Note ........................................................................................................................ 34

SECTION 3: ADMINISTRATIVE FORMS .......................................................................................... 35

SECTION 4: OUR SERVICES .............................................................................................................. 35 4.1 e-MPF Employer Online Services ............................................................................................ 35 4.2. Manulife Employer Hotline ..................................................................................................... 35 4.3. Customer Contact Center ......................................................................................................... 35 4.4. Office of Employee Benefits Department ............................................................................... 35 4.5. Quality Intermediary Service ................................................................................................... 35

APPENDIX ........................................................................................................................................... 36


PREFACE

On behalf of Manulife Provident Funds Trust Company Limited, we thank you for entrusting your MPF scheme with us.

Since the enactment of the Mandatory Provident Fund Schemes Ordinance (“MPFSO”) and commencement of the MPF system in December 2000, there have been legislative amendments and issuance of sub-legislations and Guidelines at times. Under the MPFSO, MPF employers are obliged to comply with certain requirements, failing which may subject the employers to disciplinary or legal actions by the Mandatory Provident Fund Schemes Authority (“MPFA”). The actions may include imposition of 5% surcharges on outstanding contributions, financial penalty or taking prosecutions. Manulife is delighted to offer value-added service to our clients. In view of the importance for employers to observe the relevant legislative requirements and attend to their obligations under the MPFSO, Manulife has designed this Employer Operation Manual. The operation manual serves to provide you with a simple guide with the related major legislative requirements, to help you manage and administer your MPF scheme, and understand your legal obligations as an employer. In the event of discrepancies between the Chinese and English versions, the English version shall prevail. We hope you will find this manual useful. Should you have any query, please call our Employer Hotline on (852) 2108 1234 for assistance. Employee Benefits – Provident Funds Services Manulife (International) Limited April 2021 This Employer Operation Manual is compiled by Manulife based on the statutory requirements of the MPFSO, relevant Guidelines or circular letters and the instructions from the MPFA. The terms therein may have been defined under the MPFSO. Manulife reserves the right to amend and update its content from time to time based on the latest requirements of the MPFSO, Guidelines issued by the MPFA, as well as Manulife’s administration arrangements. The content of this manual does not serve to provide any legal advice in relation to MPF matters. Manulife will not be held liable for the responsibilities arising from the misinterpretation of the content of this manual. To safeguard your rights and interests, you are advised to seek independent or professional legal advice, or refer to the MPFSO for details.


SECTION 1: INTRODUCTION

1.1 Our Product Manulife offers a master trust scheme, Manulife Global Select (MPF) Scheme, in which employers and their employees, self-employed persons and other eligible persons may participate. For details about the scheme structure and other features, please refer to the MPF Scheme Brochure of Manulife Global Select (MPF) Scheme. 1.2 Getting Started With Manulife MPF Scheme

1.2.1 Welcome Package When an MPF Sub-scheme is successfully set up, employer will receive a Welcome Package containing: a. Notice of Participation (to employer) b. A copy of the Participation Agreement of the MPF Scheme made between you and

Manulife Provident Funds Trust Company Limited (the Trustee) c. A copy of Employer Application Form d. Sub-scheme bar code label accompanied by other useful guides or pamphlets on

administrating your MPF sub-scheme 1.2.2 Notice of Participation (to member) After the member records set up is completed for each of your enrolled employees, we will send the Notice(s) of Participation to you. Please check the content and distribute the Notices of Participation to your employees. In addition, your newly enrolled employees will also receive a welcome message from us via e-mail confirming their participation into the Scheme, provided that they had registered an e-mail address with us. 1.2.3 Manulife Customer Number (MCN) As an employer, you will receive your unique MCN after the set-up of the MPF sub-scheme. Your MCN is printed on the top right-hand corner of the monthly Account Statement. Employer’s PIN will be sent to you in a separate mail. Please also advise your employees to visit www.manulife.com.hk and register for using our wide range of online services provided for members.

http://www.manulife.com.hk/


1.2.4 Participation Number A Participation Number will be issued by the Mandatory Provident Fund Schemes Authority (“MPFA”) to certify your company’s participation in our Manulife Global Select (MPF) Scheme. We will inform you of this number by mail so that you can quote it when communicating with the MPFA in future. 1.2.5 Regular Statements & Reports Manulife will prepare statements/ reports for you to keep you posted on the account status of your sub-scheme, which are either available on our website or sent by post. Your support in using e-Statement is important to environmental protection! If you have opted for using e-Statement and registered an email address with us, you will receive an e-Alert notification via email when the latest report is available. If you have not yet opted for using e-Statement, you may update your e-Statement setting online and also the contact information, including email address and mobile number, via your eMPF account anytime.

1.2.5.1 Employer Monthly Package

Each month, Manulife will prepare for you an Employer Monthly Package (“ER Pack”) showing the contribution status and account balance of your sub-scheme. The ER Pack is available at your e-MPF account for download. For non e-Statement users, the ER Pack will be sent by post. 1.2.5.2 Month End Report for Outstanding Contributions and/or Surcharges To keep you updated of the payment status of your MPF sub-scheme and to facilitate your prompt rectification or payment settlement for the default contributions (“DCs”), we will issue a “Month End Report for Outstanding Contributions and/or Surcharges” (“Report”) to you at each month end, if we have reported DCs of your sub-scheme to the Mandatory Provident Fund Schemes Authority in the Report issue month, where the relevant MPF contributions were not fully settled on or before the statutory contribution day (usually 10th day of each month). If it applies to your sub-scheme, the Report will be available at your e-MPF account for download. If you have registered an email address with us, you would receive an electronic reminder when the Report is available online. If you have not yet opted for e-Statement, the Report will be sent by post. Your immediate actions are kindly requested to complete and return to us the relevant sections of the Report as appropriate, and settle the concerned contributions and/or surcharges in full.


1.2.5.3 Employer Monthly Follow-up Summary Apart from the above Report, we will issue an “Employer Monthly Follow-up Summary” (“Follow-up Summary”) to you monthly if we receive from you 1) contribution data for your employees whose member accounts are not yet properly set up; 2) incomplete/unclear member termination instruction or notice, and/or 3) incomplete instruction to establish or change scheme rules regarding employer voluntary contributions. If it applies to your sub-scheme, the Follow-up Summary will be available at your e-MPF account for download. If you have registered an email address with us, you would receive an electronic reminder when the Follow-up Summary is available online. If you have not yet opted for e-Statement, the Follow-up Summary will be sent by post. Your immediate actions are kindly requested to rectify or submit the incomplete or outstanding or data as soon as possible.


SECTION 2: SCHEME ADMINISTRATION 2.1 Enrolment of Employees 2.1.1 Key Terms Non-Casual Employee: an employee who is • Aged 18 to 64; • Working either full-time or part-time; and • Employed for a continuous period of 60 days or more. Casual Employee: an employee who is • Aged 18 to 64; • Working either full-time or part-time; • Engaged in the catering or construction industry; and • Employed on a day-to-day basis or for a fixed period of less than 60 days. Exempt Persons as defined under the MPFSO include the following: 1. Domestic employees, such as foreign helpers and part-time houseworkers; 2. Hawkers; 3. People covered by statutory pension or provident fund schemes, such as civil

servants and subsidized or grant school teachers; 4. Members of occupational retirement schemes who have been granted exemption

certificates; 5. People from overseas who enter Hong Kong for the purpose of employment for a

period of less than 13 months; 6. People from overseas who enter Hong Kong for the purpose of employment and are

covered by overseas retirement schemes; 7. Employees of the European Union Office of the European Commission in Hong

Kong. 8. Besides, people who are employed as seafarers under crew agreements within the

terms of the Merchant Shipping (Seafarers) Ordinance (Cap.478), or people who work on ships not registered in Hong Kong, are not relevant employees regulated by the MPFSO.

Remarks : Notwithstanding that the above-mentioned exempt persons are not statutorily required to be enrolled in an MPF scheme, employers have the discretion to arrange MPF enrolment for them. However, employers are reminded to consider whether and how they will make voluntary contributions in respect of the concerned employees, as well as communicate clearly with such employees for whatever arrangement. 2.1.2 New Employee Enrolment

i. New employee enrolment can be done either online or by completing the enrolment form. You may view the demo video to learn more on how to manage e-Enrolment through our e-MPF Online Employer Service platform. (See Appendix C for a list of related resources).


Employer is required to provide the new employees with the following documents, all of which are also available on our online platform :

• A Manulife Global Select (MPF) Scheme Employee Enrolment Form; • A MPF Scheme Brochure; • Illustrative Example for the MPF Conservative Fund; and • On-Going Cost Illustrations. Employee should read the above documents carefully before completing the Employee Enrolment Form. In particular, employee should peruse the important notices or remarks specified in the form including those related to the making of fund investment choice. Employer should ensure that all data, especially "Date of Employment", is properly filled in as this information will be used to determine the employee's first contribution and vesting entitlement (if applicable).

ii. If your Sub-scheme has voluntary contribution provisions, please ask the employee to

sign a form to authorize your company to deduct voluntary contributions from his/her relevant income. This form is to be kept on record by the employer.

iii. Complete employee enrolment before the end of the Permitted Period by which

employee needs to enroll in an MPF scheme. See tables 1, 2, and 3 for the enrolment deadline for different kinds of employees.

iv. Indicate in the case of any Casual Employee during enrolment if applicable.

v. For hard copy form submission (NOT required for online submission):

• Sign and affix the company stamp on the Form. To safeguard your and the members'

interests, Manulife is obliged to only recognize the authorized signature as appeared in the MPF Scheme Application.

• Stick a Sub-scheme bar code label (this is sent to you via the welcome package) on

each of the Employee Enrolment Form. If you do not have the label, please write the Sub-scheme Number in the appropriate box on the form.

• Return the completed Employee Enrolment Form to:

Employee Benefits – Provident Funds Services Manulife (International) Limited 21/F, Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong

Effective January 1, 2020, provision of a complete and valid self-certifications (which is embedded in the Employee Enrolment Form) for Common Reporting Standard purpose will become a mandatory part of the onboarding process for members joining a MPF scheme. To enroll your employees on time within the statutory timeline, Manulife strongly recommends you to enroll any new employee before the enrolment deadline (i.e.


before the end of the "Permitted Period") and ensure the Employee Enrolment Form is duly completed, signed and dated before submission. Failure to enroll employees and make contributions on time may subject the employer to a 5% surcharge on the overdue contributions, or other legal actions by the MPFA. The legal actions, amongst others, may include financial penalty or prosecution. 2.1.3 Enrolment for Non-Casual Employees This sub-section refers to those Non-Casual Employees who are hired at aged below 18 and those at and above 18 years old. It covers when you should enroll your employees and make contributions and the contribution treatment if employees cease employment within the first 60 days of employment. Table 1. Enrolment and Contribution for Non-Casual Employee

Non-Casual Employee (Hired at age 18 or above)

Non-Casual Employee (Hired at below age 18)

When to Enroll? (Permitted Period)

Within the first 60 days* of employment

Within the first 60 days* after the employee attains the age of 18

When should the first contribution be made?

Contribution should be made on or before the 10th day after the last day of the month during which the permitted period ends#

What period should the first contributions cover?

(1) Employer 1st Contribution

Mandatory contribution from the 1st day of employment to the last day of the payroll period in which Employee has completed 60 days of employment

Mandatory contribution from Employee's 18th birthday to the last day of the payroll period in which Employee has completed 60 days of employment after attaining age 18.

(2) Employee 1st Contribution^

For monthly or shorter payroll periods: Mandatory contribution from the 1st day of the complete payroll period immediately following the 30th day of employment to the last day of the payroll period in which Employee has completed 60 days of employment

For monthly or shorter payroll periods: Mandatory contribution from the 1st day of the complete payroll period immediately following the 30th day after attaining age 18 to the last day of the payroll period in which Employee has completed 60 days of employment after attaining age 18.

When should the ongoing contributions be made?

Contribution should be made on or before the 10th day after the last day of the month within which the relevant contribution period ends

If the Employee ceases employment before completing the 60 day period, then

Employer and Employee will be exempted from making Mandatory Contribution

Employer and Employee will be exempted from making Mandatory Contribution if the Employee ceases employment within 60 days period after attaining age 18

Employee who is aged 65 or above or below 18 years old can also be enrolled in an MPF scheme and make voluntary contribution. * If the 60th day of employment of the new employee is a Saturday, a public holiday, a gale/black rainstorm warning day, the end of the permitted period shall fall on the following day which is not a Saturday, a public holiday, a gale/black rainstorm warning day.


# In determining the first contribution day for making mandatory contributions, the permitted period still ends on the 60th day of employment even if it is a Saturday, a public holiday, or a gale/black rainstorm warning day. ^Any enquiries on contributions other than the above payroll periods, you may call our Employer Hotline on (852) 2108 1234. 2.1.4 Enrolment for Casual Employees Table 2. Enrolment and Contribution for Casual Employee

Casual Employee (Hired at age 18 or above)

Casual Employee (Hired below age 18)

When to Enroll? (Permitted Period)

On or before the 10th day* of employment

On or before the first 10 days* of employment or the day on which the Employee attains the age of 18, whichever is later


Contribution should be made on or before the 10th day after the last day of the contribution period in which the permitted period ends#


(1) Employer Contribution

Both Employer and Employee mandatory contribution starts from the 1st day of employment

Both Employer and Employee mandatory contribution starts from Employee's 18th birthday (2) Employee

Contribution When should the ongoing contributions be made?

Contribution should be made on or before the 10th day after the last day of the month within which the relevant contribution period ends

If the Employee ceases employment before completing the 10-day period, then

Both Employee and Employer are still required to make mandatory contributions from the first day to the last day of employment

* If the 10th day of employment of the new employee is a Saturday, a public holiday, a gale/black rainstorm warning day, the end of the permitted period shall fall on the following day which is not a Saturday, a public holiday, a gale/black rainstorm warning day. # In determining the first contribution day for making mandatory contributions, the permitted period still ends on the 10th day of employment even if it is a Saturday, a public holiday, or a gale/black rainstorm warning day. Example to illustrate enrolment can be found in Appendix A 2.1.5 Enrolment for Expatriate Employee

This sub-section refers to Expatriate Employees who have been granted employment visa for working in Hong Kong. An employee who has been granted an employment visa for a period of 13 months or less would be exempted from the provisions of the Ordinance, and this employee is not required to be enrolled in an MPF Scheme.


An employee who has been originally granted an employment visa for not more than 13 months, and if the visa is renewed and brings the employee's total continuous period of permission for employment in Hong Kong to over 13 months, this employee would cease to be exempted from the provisions of the Ordinance from the first day after the 13-month period and this employee is required to be enrolled in an MPF Scheme and make Mandatory Contributions. Table 3. Enrolment and Contribution for Expatriate Employee Expatriate Employees (after 13-month exemption period) When to Enroll? (Permitted Period)

Within the first 60 days* of employment after the 13-month exemption period


Contribution should be made on or before the 10th day after the last day of the month during which the permitted period ends#


(1) Employer Contributions Mandatory contributions from the 1st day after the 13-month of exemption period to the last day of the payroll period in which Employee has completed 60 days of employment after the 13-month period

(2) Employee Contributions Mandatory contributions from the 1st day of the complete payroll period immediately following the 30th day of employment after the 13-month period to the last day of the payroll period in which Employee has completed 60 days of employment after the 13-month period

When should the ongoing contributions be made?

Contribution should be made on or before the 10th day after the last day of the calendar month within which the relevant contribution period ends

If the Employee ceases employment before completing the 60 days after the 13-month period, then

Both Employer and Employee will be exempted from making mandatory contributions

* If the 60th day of employment of the new employee is a Saturday, a public holiday, a gale/black rainstorm warning day, the end of the permitted period shall fall on the following day which is not a Saturday, a public holiday, a gale/ black rainstorm warning day. # In determining the first contribution day for making mandatory contributions, the permitted period still ends on the 60th day of employment even if it is a Saturday, a public holiday, or a gale/black rainstorm warning day.


2.1.6 Points to Note DO's a. Employer has to ensure that the full enrolment kit with up-to-date MPF Scheme

Brochure and all the required documents are provided to new employees joining the Scheme.

b. Employer, shall in his own accord, defines the meaning of Non-Casual, Casual

and Exempt Employees. In the event of doubt, the employer should seek professional advice. The trustee will not be held liable for any deviations in contributions arising from the ambiguity of such definitions.

c. Employer shall remind employees to complete the enrolment procedure and provide

relevant personal particulars (including, but not limited to, correspondence address, contact telephone number, date of birth and together with a valid self-certification for tax residency), read all the important notes particularly those pertaining to the making of fund choices before completing it and most importantly sign and put a date in the case of using paper form.

d. Employee enrolment should ideally be completed prior to the remittance of contribution data / payment for the employee.

e. First contribution for new employees can be reported online, or by using the

“Remittance Statement for New Employee. f. Employer has the obligation to immediately inform Manulife to activate a member's

mandatory contribution once employee is no longer categorized as an exempt person.

2.2. Defining Relevant Income and Contribution 2.2.1 Key Terms Contribution Day It means the 10th day after the last day of a. Calendar month within which the relevant contribution period ends; or b. The month during which the permitted period ends; whichever is later.

(For the definition of Contribution Day for payroll periods ending before February 1, 2003, please contact our Employer Hotline 2108 1234.) If the Contribution Day falls on a Saturday, a public holiday, a gale/black rainstorm warning day, the Contribution Day will be extended to the following day which is not a Saturday, a public holiday, a gale/black rainstorm warning day. Contribution Period It is the period for which an employer pays relevant income to the employee and is referred to as payroll period in this manual.


Maximum Level of Relevant Income for Mandatory Contribution Purposes The current level is HK$30,000 monthly. If the relevant income of an employee in a contribution period is equal to or exceeding the maximum level, the maximum amount of mandatory contribution that the employer and the employee need to make is $1,500 respectively. Minimum Level of Relevant Income for Mandatory Contribution Purposes The current level is HK$7,100 monthly. If the relevant income of an employee in a contribution period is below the minimum level, the employee is not required to make mandatory contributions for that contribution period. But employer is still required to make mandatory contributions for him/her. Table 4. Summary of History of Minimum & Maximum Level of Relevant Income Applicable to Contribution Periods Commencing

Minimum Level of Relevant Income

Maximum Level of Relevant Income

Contribution Frequency

Monthly Annually Monthly Annually

Before Feb 1, 2003 HK$4,000 HK$48,000

HK$20,000 HK$240,000 Between Feb 1, 2003 and Oct 31, 2011 inclusive HK$5,000 HK$60,000

On or after Nov 1, 2011 HK$6,500 HK$,78,000

On or after Jun 1, 2012 HK$25,000 HK$300,000

On or after Nov 1, 2013 HK$7,100 HK$85,200

On or after Jun 1, 2014 Hk$30,000 HK$360,000

Relevant Income 2.2.2 Relevant Income Income must be made in consideration of employment in order to be included as relevant income. In other words, it must be a payment for services rendered in performing the duties of the employment. To ascertain whether certain types of income are considered as Relevant Income, you can refer to the following tables. Please seek independent legal advice in case of doubt. In relation to a payroll period that begins on or after November 1, 2008 *, relevant income include wages, salary, leave pay, fee, commission, bonus, gratuity, housing allowance, housing benefit, perquisite, or allowance which are expressed in monetary terms and are being paid or payable by the employer to the relevant employee. Severance payment and long service payment should be excluded from the calculation of relevant income.


Table 5. Types of Income Considered as Relevant Income

Types of Income Reasons When to be Included An agent of an employer pays incomes on behalf of the employer

In consideration of employment & expressed in monetary terms

When it is ascertained & paid

Back Payment Bonus Cash Allowance Commission Contract Gratuity Fee

Service Charges / Tips Collected by an Employer from Customers & Distributed among Employees Wages Payment to an agent of employee / 3rd party on employee's behalf in consideration of employment Payments after cessation of employment under employee's entitlement Advance Payment

When it is earned Director's Fees (Under Employment Contract) Perquisite Salary

Unidentified Payment Contribution period in which it is made

Housing Allowance and other Housing Benefits

Should be included in the calculation of Relevant Income in relation to payroll period that begins on or after November 1, 2008*.

Debt Repayment paid by employer on behalf of employee In consideration of

employment & expressed indirectly in monetary terms

When it is earned Salaries Tax paid by Employer on behalf of Employees Gratuity In consideration of

performance rewards & expressed in monetary terms

When it becomes payable

Leave Pay When it is earned Loan / Advance of money released in consideration of employment

In consideration of employment

Contribution period in which it is made

*For payroll periods ending before November 1, 2008, please contact our Employer Hotline (852) 2108 1234.


Table 6. Types of Income Not Considered as Relevant Income

Types of Income Reasons Awards of damages or Compensation determined by courts or tribunals

Not a reward for services

Gratuity for Marriage Payment made by 3rd parties to an insurance contract provided by employer Rewards for Passing a Professional Examination Director's Fees (An Office Holder)

Not in consideration of employment Loan / Advance of money Tips (without employer's intervention) Uniform Laundry Allowance Long Service Payment

Statutory payment Redundancy Payment Severance Payment Entertainment Allowance Necessary in the performance of an

employment Mileage Duty Allowance Mobile Phone Services Charges Allowance Payment in lieu of notice from employee to employer Compensation for employment termination,

not in consideration of services rendered Payment in lieu of notice from employer to employee Cash Allowance (an alternative to free meals)

Non-monetary benefit

Cash Realized from Selling of Marketable Goods or Services which is provided by the employer Marketable Goods or Services provided by the employer Provision of Education Provision of Furniture Provision of Life Insurance Provision of Meals Provision of Medical Service Provision of Travelling Provision of Uniforms Reimbursement for Education Allowance Reimbursement for Medical Treatment Reimbursement for Professional Organization Membership Reimbursement for Travelling Allowance Share Options


2.2.3 Mandatory Contributions

2.2.3.1 Calculation of Mandatory Contributions Minimum Relevant Income Minimum levels of relevant income are defined according to various payroll frequencies. If the relevant income of an employee is lower than the minimum level, the employer must still pay his 5% mandatory contribution. The employee, however, is not required to make mandatory contribution. If he elects to make a contribution, this will be regarded as voluntary contribution. Maximum Relevant Income If the relevant income of an employee is higher than the maximum level, the mandatory contributions for both the employer and employee are limited to 5% of the maximum level. However, both employer and employee can opt to make extra voluntary contributions over and above the maximum level of relevant income. Table 7. Levels of Minimum and Maximum Relevant Income for Various Payroll Frequencies

Payroll Frequency Minimum Level of Relevant Income

Maximum Level of Relevant Income

Daily (or more frequent than on a

monthly basis)

$280 (x no. of days in the contribution period)

$1,000 (x no. of days in the contribution period)

Monthly $7,100 $30,000 Table 8. Illustration on Contribution Calculation Assumption: The payroll frequency is monthly and contribution period commences on or after June 1, 2014.

Monthly Relevant Income

Mandatory Contributions Voluntary Contributions

Employee Employer Total Employee Employer

$6,000 $0# $300 $300 Optional $7,100 $355 $355 $710

$40,000 $1,500* $1,500* $3,000 # Employee does not need to make any mandatory contributions as his/her relevant income is below $7,100.

*Both the employer and employee mandatory contributions are limited to HK$1,500 respectively (i.e. 5% of HK$40,000, subject to the upper limit at $1,500).

An online contribution calculation tool – “MPF Contribution Calculator” The calculator is available to facilitate employers (i) to calculate the first and last mandatory contributions for employees (other than casual employees or exempted persons) between the ages of 18 and 64; (ii) to determine the contribution due date; and (iii) to identify the statutory deadline for member’s enrolment into the MPF scheme. It is available on our website via the following path: www.manulife.com.hk > Corporations > Services > MPF contribution calculator.


For the calculation of the first contribution and the deadline of enrollment for an employee reaching age 18, you can refer to Appendix B for an illustration. 2.2.4 Voluntary Contributions Both the employer & employee under MPF Scheme may choose to make a voluntary contribution in addition to the mandatory contributions, subject to the governing rule of the Sub-scheme. Employer may arrange employee who is less than 18 years of age or more than 65 years of age or defined as an exempt person under the Mandatory Provident Fund Schemes Ordinance to join the MPF scheme and make voluntary contributions. a. How to make Employer Voluntary Contributions

i. Sub-scheme is yet set up, at the time of completing the Employer Application Form, complete Section C - For Sub-scheme with Voluntary Contributions Only

ii. Sub-scheme already set up,

• Complete the "Addition / Change of Voluntary Contribution" Form • The Addition / Change of voluntary contributions shall commence no sooner

than: - the effective date of change*; or - the date of receipt by the Trustee of approval by the Mandatory Provident

Fund Schemes Authority, if required. *One month prior notice to the Trustee and the relevant employee(s) is required to change any existing voluntary contribution particulars. For the avoidance of doubt, the effective date of change shall be deemed as one month from the date that the Trustee receives the "Addition / Change of Voluntary Contribution" form or the “Effective Date of Change” as specified on the form, whichever is later. Manulife may be required to submit the details of the Voluntary Contribution arrangement to the Mandatory Provident Fund Schemes Authority for approval before allocating the first voluntary contributions for the sub-scheme or effecting a new vesting scale. b. How to make Employee Voluntary Contributions Member can authorize the employer to deduct voluntary contributions from his/her relevant income. Employer will then arrange the deduction and remittance of such voluntary contributions to the trustee. If employer only intends to remit voluntary contributions on behalf of employees and there is no employer voluntary contributions concerned, there is no need to complete the "Addition / Change of Voluntary Contribution" form.


2.2.5 Points to Note DOs a. Employer shall, in his/her own accord, define and be able to prove items under the

scope of Relevant Income. b. Employer should ensure that calculations for mandatory contributions are accurate. c. Any mandatory contributions must be made on or before the Contribution Day

which is the 10th day after the last day of (i) a calendar month within which the relevant contribution period ends; or (ii) the month during which the permitted period ends; whichever is later. (For payroll period ending before February 1, 2003, please contact our Employer Hotline (852) 2108 1234.)

d. Arrangement for voluntary contribution is subject to the governing rules of the sub-

scheme. e. If there is employer voluntary contribution under the sub-scheme, details of the

vesting scale must be clearly specified in advance, and MPFA's approval may be required for the arrangement set-up.

f. Changes to voluntary contributions must be requested through the

"Addition/Change of Voluntary Contribution" form. Other format will not be accepted.

2.3 Contribution Reporting & Remittance 2.3.1 Key Terms What does an employer need to submit for completing a contribution remittance?

Contributions = Contribution Data + Payment

Contribution data with regards to a certain payroll period includes: a. Specified Payroll Period b. Amount of Relevant Income c. Amount of Employee Mandatory Contribution d. Amount of Employer Mandatory Contribution e. Amount of Employee Voluntary Contribution, if any f. Amount of Employer Voluntary Contribution, if any g. Amount of Contribution Surcharge, if levied by the MPFA


2.3.2 Contribution Data Reporting Methods Manulife offers different channels for submitting MPF contribution data: By electronic means:- • Contribution Express (“ContX”, for online contribution remittance via internet) • AlphaHRMS • Direct File Interface By Pre-printed Remittance Statement (“RS”) in hard copy format: • Pre-printed RS with contribution data • Pre-printed RS without contribution data Employer may submit request to Manulife to opt for the type of MPF contribution data reporting method that best suit his needs. If no choice is made, Manulife will set the MPF contribution data reporting method as “Pre-printed RS with contribution data”. For more details, please refer to the following Table 9.


Table 9

Reporting Methods Details How to… 1. Contribution Express (Online contribution remittance via Internet)

Description A secured and user-friendly tool that enables employers to calculate and submit MPF contribution data via the Internet Benefits Free of charge Easy to operate Fast and convenient - Employer only needs

to update the relevant income, and the contributions will be calculated automatically

Ensure timely receipt of contribution data by Manulife

Paperless (Environmental friendly)

Submit contribution data:- Employer can log on to Manulife website www.manulife.com.hk with your Manulife Customer Number (MCN) & Personal Identification Number (PIN), and input or update the relevant income for respective members

Apply for this service:- Please complete and return the “Employer Services Form for MPF Contribution Calculation and Remittance Method Selection” to Manulife. Online registration for new users is also acceptable.

2. AlphaHRMS (Human Resources Management System)

Description AhphaHRMS is a comprehensive human resources management system (developed by an external software company, Asia Pacific Soft Limited (“APSoft”)) with advanced features to support human resources functions and perform MPF administrations at a single platform

Submit contribution data:- Employer can simply generate the relevant contribution file via this software and remit to Manulife by uploading to our website. Apply for this service:- Please complete and return the “Employer Services Form for MPF Contribution Calculation and Remittance Method Selection” together with the “AlphaHRMS Application Form” to Manulife. APSoft will set up a user account for employer to obtain the software and other necessary manual or guide.

Benefits Conduct HR functions including payroll,

and taxation, etc. Perform MPF administration including

remit contribution, and report employee terminations electronically

Support autopay file for payroll of major banks

3. Direct File Interface Description If Employers have an existing in-house HR system, they can choose to provide contribution data in the feed file (Text / Excel file format that meets our acceptance criteria), and directly upload to Manulife.

Submit contribution data:- Employer can generate the contribution file via its own system and upload it via Manulife websites, subject to the agreed format. Apply for this service:- Please complete and return the “Employer Services Form for MPF Contribution Calculation and Remittance Method Selection” to Manulife. To ensure accurate processing, please allow approximately 2 months trial period for rectifications and file testing for first time set-up.

Benefits Free of charge Fast and convenient Timely receipt of contribution data by

Manulife via electronic remittance Employers can continue to use the existing

HR/Payroll system to generate the contribution data

Paperless (Environmental friendly)


4. Pre-printed Remittance Statement (RS)

Description Manulife will send a Remittance Statement (RS) with pre-printed enrolled members’ information with or without contribution data to employer normally around 10 days before each contribution period end day Benefits Fast and convenient For using RS with pre-printed employees’

names and contribution details, you are only required to sign and affix company chop on the RS if the contribution data remained unchanged.

The completed RS can be sent by post or fax

Submit contribution data via the following channels: By Fax (852) 2104 3504 By Post 21/F, Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong

Apply for this service:- If employer does not make any choice, Manulife will set the MPF contribution data reporting method as “Pre-printed RS with contribution data”.

Points to Note DOs

i. For timely and effective contribution data reporting, employers are encouraged to use electronic means

ii. Member enrolment should ideally be completed prior to the remittance of contribution data / payment for the newly enrolled employees.

iii. Hard copy remittance statement must be signed by the authorized person with proper company chop affixed.

iv. If there is more than one billing class under your sub-scheme, employer is required to submit a remittance statement for EACH billing class.

v. If an employee has no relevant income for a certain payroll period, employer must report an amount of "0" under the Relevant Income column next to the concerned employee's name.

vi. If there is employee termination, employer should report the relevant income and contributions for the terminated employee’s last payroll period in the remittance statement. If no LSP/SP offsetting is involved for the termination, employer should report such termination in the remittance statement stating the Last Date of Employment of the terminated employee.

vii. Further to point (e), if any LSP/SP offsetting is involved, employer should submit separately the "Notice of Employee Termination" form, together with the necessary supporting documents, in respect of the terminated employee on or before the 10th day after: - the last day of the calendar month in which the employee ceases employment,

(if employee terminates employment on or after February 1, 2003) ; or - the day of cessation of employment, (if the employee terminates employment

before February 1, 2003).


viii. If contribution payment is made by cheque, please state the cheque number clearly on the related remittance statement(s) and /or contribution file(s). Single cheque payment for each submission is desirable. For use of multiple cheques, please state all relevant cheque numbers on the corresponding remittance statement(s) or file(s).

ix. If the remittance data and/or cheque payment is sent by post, employer should allow sufficient postal time and affix appropriate stamp to ensure trustee receives the mail on or before the Contribution Day. (i.e. the 10th day of each month in general)

DON'Ts

a. Employer should not change the "Payroll Period" setting on the pre-printed remittance statement without giving us an advanced notice for such change of at least 4 weeks. To re-define the payroll period setting, employer should use the "Change of Payroll Period / Payroll Frequency" form

b. Employer should not submit the remittance statement in respect of the sub-scheme or billing class if, 1) there is no more active employee under the sub-scheme or billing class, or 2) all employees under the sub-scheme or billing class have reached the retirement age or are under age 18, and no voluntary contribution for the said employees has to be made. On the contrary, if voluntary contributions are made for employees under situation (2), employer still needs to submit the remittance statement.

2.3.3 Payment Methods There are two ways to submit contribution payment. The following explanations are the steps involved in each of the remittance methods. 2.3.3.1 Direct Debit Authorization (DDA) Pre-requisite: Employer signs the DDA form and returns to Manulife. Please allow at least 3-6 weeks’ set up time during which employer should make payment by cheque • When the DDA arrangement is properly set up, Manulife, upon receiving employer’s

contribution data, will arrange to debit the required contributions from employer’s specified bank account accordingly.

• To ensure DDA is properly set up, please note the following when completing the DDA

Form: i. Signature on the DDA form should match employer’s bank account record ii. Ensure that the correct bank account number is written on the form iii. There should be signature next to any alteration for authentication iv. Completed form should be affixed with company stamp as per the bank

account record v. For sub-scheme with more than one billing class, one DDA Form has to be

completed for each billing class • To avoid debit failure, employer should ensure that the autopay bank account has

sufficient funds for the reported contribution amount.


2.3.3.2 Cheque Payment

* Post-dated and electronic cheques are not accepted.

Using HSBC Cheque Deposit Machine

Deposit your MPF contributions at cheque deposit machines For better certainty of making timely payment, employers are recommended to deposit cheques through HSBC Cheque Deposit Machine. Once your cheque was cleared, the date you deposited your cheque will be recorded as the date of your contribution. At the machine, please choose: Category for payment : Other companies Merchant for payment : Manulife MPF Bill Type : 01 MPF- Employer/SEP Contribution Bill Account Number : Your 7-digit Sub-Scheme number (without the initial “0”)

+ 2-digit Billing Class number

e.g. Sub-Scheme number (SSN) : 01234567 Billing Class number (BC) : 01

Please enter “123456701”

Manulife sends Payment Slip to employer

Employer issues a crossed cheque* payable to "Manulife Provident Funds Trust Company Limited" when contribution is determined. Write the Sub-Scheme Number and billing class clearly at the back of the cheque.

Remittance Statement submission method

• Deposit the cheque via the HSBC Cheque Deposit Machine (NO NEED to return the payment slip).

• Submit the completed Remittance Statement specifying the cheque no. either via fax at 2104 3504 or by mail

(Please ensure sufficient time and affix appropriate stamp for mail delivery).

• Deposit the cheque via the HSBC Cheque Deposit Machine (NO NEED to return the payment slip);

• Submit contribution data with cheque no. specified via e-Means.

Paper reporting Digital submission


For change of Payment Method, please complete and return the "Change of Payment Method/Autopay Bank Account" form to Manulife. For autopay, it takes at least 3 to 6 weeks to set up the direct debit authorization with the bank. Please continue to pay contributions according to the current payment method until receipt of written confirmation on the autopay set-up from Manulife. Employers who intend to settle contributions by using available credit in their cash account should 1) check the latest balance via e-MPF online account to ensure sufficient fund; and 2) indicate on Remittance Statement that the contributions will be fully or partially (e.g. involving a combination of payment by cheque and by available credit) settled by using available credit.

2.3.4 Check Allocation Status You can manage your MPF accounts with ease through Employer Online Services for checking your latest allocation status and contribution history by member or by payroll period.

2.3.5 Contribution Records As required by the MPFSO, employer should give certain payment records to employees while keeping other records regarding relevant income and contribution remittance. 2.3.5.1 Records to be Given to Employees Employer should prepare a pay-record each month in respect of each relevant employee and ensure that the record is given to the employee no later than 7 working days after the last payment during the month. The pay-record should contain the following information: • The amount of relevant income paid to the employee for the month • The amount of employee's mandatory contributions deducted from his relevant income • The amount of employer's mandatory contributions • The amount of employee's voluntary contributions (if any) deducted from his relevant

income. • The amount of employer's voluntary contributions (if any) • The date on which the contributions were paid to Manulife 2.3.5.2 Records that Employer Should Keep Employer should keep the following in respect of each relevant employee for at least 6 months after the relevant income is paid to the employee: • The total amount of each relevant income payment • The amount of items included in the relevant income • The date on which the relevant income is paid to the employee For information included in the Remittance Statement or submitted via other contribution reporting tools, employer should also keep it for at least 7 years after the date of the remittance.


2.3.6 Calculation Discrepancies & Late Contributions 2.3.6.1 Calculation Discrepancy Trustees are required to check the mandatory contribution figures reported by employer. Except for pro-rating and contribution holidays as stipulated by the regulations, when the calculation of Mandatory Contributions does not equal to 5% of the relevant income as provided by the employer, then calculation discrepancy occurs. 2.3.6.1.1 What Manulife will do when there is calculation discrepancy a. Manulife will base on the relevant income reported by the employer to calculate the

member’s and employer’s mandatory contribution amount. If there is a discrepancy between the employer’s reported amount (“Reported Information”) and Manulife’s calculated amount (“Manulife’s Calculation”), Manulife will issue a Calculation Discrepancy Report (CDR) to the employer for rectification.

b. To avoid delay in fund allocation, Manulife will allocate the contribution amount based on the lesser of Reported Information and Manulife’s Calculation. The same allocation amount applies to both Member and Employer Mandatory Contributions. Please refer to the following illustrations.

Illustration (a)

Reported Mandatory contributions < RI x 5%

Relevant Income (RI)

Employee Mandatory

Contribution

(EEMC)

Employer Mandatory

Contribution

(ERMC)

Contribution Discrepancy

Reported Information

(By Employer)

$10,000 $400 $400 -

Manulife’s Calculation $10,000 $500 $500 -

Contribution allocated amount $10,000 $400 $400 $200

Payment Type

Clearing / Debit

Amount

Allocation Amount Cash Account EEMC ERMC

i) Cheque received $800 $400 $400 $0

ii) DDA $800 $400 $400 $0

Illustration (b)

Reported Mandatory contributions > RI x 5%

Relevant Income (RI)

Employee Mandatory

Contribution

(EEMC)

Employer Mandatory

Contribution

(ERMC)

Contribution Discrepancy

Reported Information

(By Employer)

$10,000 $600 $600 -

Manulife’s Calculation $10,000 $500 $500 -

Contribution allocated amount $10,000 $500 $500 $200

Payment Type Clearing / Allocation Amount Cash Account


Debit Amount EEMC ERMC

Cheque received $1,200 $500 $500 $200

DDA $1,000 $500 $500 $0

2.3.6.1.2 What Employer should do when there is calculation discrepancy

a. Confirm the correct relevant income and mandatory contribution amount if

appropriate. b. Return the completed Calculation Discrepancy Report by either fax or mail to

Manulife immediately. c. Settle any shortfall amount due to discrepancy if appropriate. d. Even when Manulife has done fund allocations based on the lesser of the

employer's reported amount and Manulife's calculated amount (based on the employer's reported relevant income), the employer still needs to confirm and return the correct contribution data as soon as possible.

e. Arrange to refund any overpayment of employee mandatory contributions that is deducted from payroll to the concerned employee(s).

2.3.6.1.3 Impact of not settling Calculation Discrepancy Report (CDR)

a. The notice of CDR will only be issued once. If there is no reply in response to the

CDR and/or full settlement of the outstanding contributions is not made on or before Contribution Day, the employer may be subject to surcharge or other enforcement actions by the MPFA.

b. Member termination and transfer of benefits may be deferred. 2.3.6.2 Late Contributions 2.3.6.2.1 Default Contribution In accordance with Amendment Ordinance 2008, after November 1, 2008, when employer fails to settle the mandatory contributions before the Contribution Day, the contribution is classified as default. Default contribution is subject to surcharge. a. When will Manulife report to MPFA

i. As required by the MPFSO, Manulife will report all defaulters to MPFA, if the contribution is not received on or before the Contribution Day

ii. The decision on issuance of payment notice rests with the MPFA b. What will the MPFA notify employer who has been reported for default

contributions? i. MPFA would normally serve one payment notice stipulating a payment

deadline to demand payment of contribution in arrears and impose a surcharge at a flat rate of 5% of the contribution in arrears. (For payroll period ending before February 1, 2003, please contact our Employer Hotline (852) 2108 1234)

ii. Continuing default at the end of the payment period may trigger other

follow-up actions including prosecution by the MPFA.


c. What will be the consequence for employer failing to settle the Default Contributions and surcharges? If the employer fails to remit the outstanding contributions and surcharges before the Payment Due Date, he/she may be liable to an offence, for details please refer to Section 2.1.2

Important note:- To protect the rights of employees, employers should always make prompt rectification on contributions and/or surcharges as soon as possible without waiting for the payment notice issued by the MPFA. For on-going monitoring of your sub-scheme’s contribution status, please access e-MPF online account to view the latest status and ensure no outstanding actions required from you. 2.3.7 Tax Deduction Entitlement Under an employee contribution account, the contributions entitled for tax deductions for the employer and the employee are as follows: Employer The maximum amount is 15% of total annual emolument of each employee (in total for all in force retirement schemes that the employee is contributing to). Employee Employee will be entitled to a tax deduction for the mandatory contributions made to the scheme up to a permitted maximum level. The maximum deduction for each year of assessment is:

Year of assessment Maximum deduction (HK$)

2008/09 to 2011/12 12,000 2012/13 14,500 2013/14 15,000 2014/15 17,500 2015/16 onwards 18,000 Source: GovHK government website Employees who would like to enjoy addition tax deduction benefits may also consider to set up a Tax Deductible Voluntary Contributions (“TVC”) account for making additional MPF contribution. Enrolment and contribution are directly handled by employees. Interested employees can visit our website at www.manulife.com.hk and enroll through our Online Application Platform.



2.3.8 Points to Note DO's a. At all time, please ensure you make FULL payment for settlement of all

contribution amount reported to Manulife. Employers are obligated to ensure fund allocation can be done with sufficient funds.

b. For contribution payment by cheque, please issue cheque payable to "Manulife Provident Funds Trust Company Limited". Always attach the “Payment Slip” as provided by Manulife for the respective pay period and single cheque payment for each submission is desirable. For use of multiple cheques, please state all relevant cheque numbers on the corresponding remittance statement(s) or file(s).

c. The cheque payment can be

i. deposited via HSBC Cheque Deposit Machines. Please input the contribution amount and other details carefully. There is NO NEED to return the bank’s cheque deposit advice or the Payment Slip to Manulife. Remember to state your cheque no. on the related remittance statement or the contribution data file submitted. Once your cheque was cleared, the date you deposited your cheque will be recorded as the date of contribution; OR

ii. mailed to Manulife together with the completed Remittance Statement & Payment Slip

d. To ensure timely settlement of contribution payment, auto-payment is

recommended, if not already set up. Please complete and return the original Direct Debit Authorization form for arrangement, auto-payment saves time and administrative cost!

e. To change the method of payment, please submit completed "Change of Payment

Method / Autopay Bank Account" form and allow sufficient time for processing. Before the new method of payment is effective, please continue to use the existing way of payment.

f. Please report contribution data and remit payment for relevant payroll period on or

before Contribution Day. Timely remittance of contributions is important in protecting employee's interest and also fulfilling employer's obligations.

g. If the remittance statement and/or cheque payment is made by post, employer should allow sufficient time and affix appropriate stamp for mail delivery to ensure that trustee receive the contribution on or before the Contribution Day.

h. Remittance Statement must be signed by the authorized person together with proper company chop.

i. If there is more than one billing class under your sub-scheme, employer is required to submit a Remittance Statement and a cheque for EACH billing class.

j. If employee has no relevant income for a certain payroll period, employer must report “0” under the Relevant Income column next to the employee’s name.

k. For terminated employee, employer is required to report last contribution and last date of employment in respect of the employee on or before the 10th day after the last day of the calendar month in which the employee ceases employment.


l. For newly hired employee, ensure timely enrolment and report first contribution

either online or using the “Remittance Statement for New Employee” . Please ensure the full English name and HKID card number are the same as that in the employee enrollment form.

m. To comply with the MPF requirements, an Employer should keep the payment

records for each relevant employee for at least 6 months after the payment of relevant income to the employee(s). Employer should also keep the contribution remittance data for at least 7 years after the date of remittance to the trustee.

DON'Ts a. Please DON’T send post-dated and electronic cheques which are not accepted.

b. For cheque deposited via HSBC Cheque Deposit Machines:

• Please DON’T send the bank’s cheque deposit advice or the Payment Slip to

Manulife • Please DON’T mistake your Manulife Customer Number (MCN) as the bill

account number which happens to be 9-digit too. For details please refer to section 2.3.3.2 for the guide for “Deposit your MPF contributions at cheque deposit machines”

c. Please DON’T set direct debit limit or monthly transaction frequency, and expiry date of your debit account if you choose to pay contribution via direct debit.

d. Please DON’T submit contribution data and payment via a third party, including through MPF intermediaries.

e. AVOID different payment methods used intermittently. Manulife will not preform

direct debit if a cheque number is stated in the remittance statement. f. Employer SHOULD NOT change the “Payroll Period” setting on the Remittance

Statement. Such change requires 4 weeks advance notice. To re-define the payroll period setting, employer should use the “Change of Payroll Period / Payroll Frequency” form.

2.4 Termination of Membership 2.4.1 Reporting of Member Termination Upon termination of employment of an employee, the employer has to report the termination to Manulife and complete the last contributions. For normal termination of employment that does not involve Severance Payment/Long Service Payment offsetting (SP/LSP), it can be report online via our e-MPF Online Services platform. (See Appendix C for details). Here are some points to note for reporting of member termination:


• Report online or complete and return a "Notice of Employee Termination Form" to Manulife for the terminating employee on or before the 10th day after the last day of the calendar month in which the employee ceases employment (for Non-Casual Employee), or on or before the 10th day after the cessation date of employment (for Casual Employee).

• If a Non-Casual Employee has terminated within the first 60 days of his employment,

all accrued benefits will be redeemed at market value and refunded to the employee and the employer respectively. For employee portion, it will be refunded to the employee directly by cheque while the employer portion will be credited to the employer’s cash account.

• If a Non-Casual Employee has been enrolled but has terminated his employment before

the enrolment deadline, the employer should still report the termination by completing a "Notice of Employee Termination Form".

• For hard copy form submission, please send to:

Employee Benefits – Provident Funds Services Manulife (International) Limited 21/F., Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong

If you have reported a member termination via e-MPF Online Services platform, where no SP/LSP is involved, please DO NOT mail the “Notice of Employee Termination Form” to us again in order to avoid confusion.

• Employer should report the last contribution data and make payment for the terminating

employee together with the regular reporting and payment of other employees. Alternatively, employer may complete and return to Manulife a separate remittance statement, together with last contribution payment for the terminating employee. (please refer to Table 9 at section 2.3.2 for the way of submitting remittance statement to Manulife)

• Depending on the reason of termination, the employee may complete and return the

appropriate forms to arrange for transfer / withdrawal of the accrued benefits. Employee may call the Smart Call Service on (852) 2108 1313 to obtain the required forms and the relevant declaration forms. Alternatively, these forms can be obtained from the MPFA's website at www.mpfa.org.hk

2.4.2 Transfer of Accrued Benefits by Employee

2.4.2.1 Transfer of Accrued Benefits upon Cessation of Employment / Self-employment When a member terminates employment or ceases to be self-employed, he has the following options for treating his accrued benefits: • Option A: Retain in a Personal Account under Manulife’s scheme • Option B: Transfer to the new employer’s scheme • Option C: Transfer to another scheme of his choice

http://www.mpfa.org.hk/


After he has decided on his option, he may complete the “Scheme Member’s Request for Fund Transfer Form” and send it to Manulife (for option A) or the new trustee (for option B & C). If the member does not submit the "Scheme Member’s Request for Fund Transfer Form" within 3 months after Manulife is being notified of his termination of employment or self-employment, Manulife will act in accordance with the Mandatory Provident Fund Schemes (General) Regulations, and transfer his accrued benefits to a Manulife Personal Account under the name of the member in the current scheme. If there are any outstanding contributions and/or surcharges in the employee’s account, such amount will be processed upon receipt of the outstanding sum from the employer by Manulife. 2.4.2.2 Consolidation of Personal Account For ease of account management, members are encouraged to consolidate multiple personal accounts into one account of his/her election. Please note that consolidation of personal accounts involve the withdrawal of benefits. Members are reminded to consider the fund price fluctuation or the guarantee condition for guaranteed fund in taking steps to do the consolidation. Member may simply fill in the “Scheme Member’s Request for Account Consolidation Form” (Form MPF(S) – P(C)) and send it to Manulife. We will then arrange with the previous service provider(s) to transfer accrued benefits in your other personal account(s) to Manulife for management. 2.4.2.3 Transfer of Accrued Benefits during Employment

(“Employee Choice Arrangement” effective from November 1, 2012)

When an employee is under employment, he may elect to transfer part of his accrued benefits in a lump sum from the contribution account by Employee Choice Arrangement (ECA) once per calendar year*. (*For the permitted number of transfer per calendar year and the transferability of voluntary contributions from other schemes to a Manulife scheme, please refer to the governing rules of the scheme concerned.) The table below shows the sub-accounts keeping the mandatory contributions in a contribution account and the transferability of the accrued benefits from each of these sub-accounts during an employee’s current employment:

Sub-accounts in an employee’s contribution account

Transferability after ECA

Employer mandatory contributions under current employment (ERMC)

Not transferable (Must be retained in scheme chosen by employer)

Employee mandatory contributions under current employment (EEMC)

Transferable in a lump sum to an MPF personal account once per calendar year*

Mandatory contributions from former employment(s) or self-employment (if any) (FRMC)

Transferable in a lump sum to an MPF personal account or contribution account anytime


Note: The governing rules of the scheme provided by Manulife only allow transfer of accrued benefits derived from mandatory contributions during employment. Transfer of accrued benefits from voluntary contributions during employment is not allowed. Such arrangement only allows transfer of accrued benefits derived from the employee portion under the contribution account and is not applicable to the employer portion. To make a transfer by Employee Choice Arrangement, an employee can fill in the “Employee Choice Arrangement – Transfer Election Form” and return it to the trustee of his selected scheme. He should read the “Guide to Transfer Benefits under Employee Choice Arrangement” before filling in the form. If there are any outstanding contributions and/or surcharges in the employee’s contribution account upon transfer under Employee Choice Arrangement, any recoverable sum from the employer will not be transferred out from the account. The amount concerned will be retained in the member’s contribution account with Manulife. If needed, separate transfer request in relation to the amount concerned can be made subsequently, subject to the annual quota allowance. 2.4.2.4 Details about Transfer

Upon successful transfer on cessation of employment / self-employment, personal account consolidation or by ECA during employment, the member will receive a transfer statement and/or transfer confirmation showing the details of such transfer. If there are any outstanding contributions and/or surcharges in respect of his/her contribution account, the amount and the concerned covered period(s) will be detailed in the transfer statement. Such details will also be shown in the next annual benefit statements of the member under the transfer-out contribution account and the transfer-in personal account. 2.4.3 Withdrawal of Accrued Benefits Upon receipt of complete information, any accrued benefits will be paid within 30 days; or 30 days after the Contribution Day in respect of the last contribution period that ends before the claim is lodged, whichever is later. Manulife will send a benefit payment cheque with a Benefit Payment Statement, which contains information such as the total amount paid and the details of any expenses relating to the payment made, to the employee or personal representative of the deceased in case of death claim. Member can withdraw accrued benefit base on the following grounds:

• Reached age 65*# • Early Retirement at age 60 or above* • Permanent Departure from Hong Kong • Total Incapacity • Death • Small Balance Account • Terminal Illness#


* Effective February 1, 2016, members who lodge claims on the ground of retirement or early retirement may also choose to withdraw accrued benefits either by instalments or in a lump sum. # Members may choose to withdraw accrued benefits under such grounds even when they are still under employment 2.4.4 Offsetting Employer's Contribution Against Long Service Payment / Severance Payment According to the Mandatory Provident Fund Schemes Ordinance, employer contributions to a MPF scheme may be used to offset the Long Service Payment or Severance Payment (LSP / SP). Employer should pay the LSP / SP to the terminated employee and complete section for “Long Service Payment / Severance Payment” of the "Notice of Employee Termination" form with member’s countersignature. If employer would like to offset the paid LSP/SP from employer contributions, Manulife will refund to employer, the lesser of LSP / SP amount paid and the accrued benefits attributable to the employer's contributions. However, upon the employer's specific request, it can be credited to the employer's cash account for offsetting future contributions due. Alternatively, if LSP/SP has not been paid to the terminated employee, employer can request Manulife to settle the applicable amount directly to the terminated employee. The amount withdrawn from the vested accrued benefits for offsetting LSP / SP is in the following sequence: a. the vested portion of the employer's contributions in the ORSO Scheme with Manulife b. the vested portion of the employer's MPF voluntary contributions sub-account c. the employer's MPF mandatory contributions sub-account Please note that if an employee is adjudicated bankrupt, accrued benefits derived from his / her vested employer voluntary contributions may have been vested to the Office of Official Receiver or Trustee-in-Bankruptcy, and such amount cannot be used to offset LSP / SP which employer has paid to the employee. Moreover, employees may claim for part or all of the MPF accrued benefits during employment on certain grounds under the MPFS Ordinance. In general, whenever an employee terminates employment where LSP / SP offset with the MPF benefits is involved, employer is reminded to check with the trustee and/or communicate with the employee thoroughly and obtain any necessary information from them on his/her account (such as any amount claimed on eligible ground during employment and the remaining balance available for the offset) prior to making LSP/SP payment to the employee. 2.4.5. Unvested Employer's Withdrawal Credits If employer has contributed voluntary contributions for the terminating employees for which the employee is not fully entitled, the unvested portion of the employer's voluntary contributions will be credited to employer's cash account. The unvested credit may refund to the employers as request by employers or use to offset future contributions.


2.4.6. Last Contribution for Terminated Employee When a relevant employee ceases employment, the last Contribution Day will be determined by the date when outstanding income is paid to him/her. Table 10. Determine Contribution Day for a Relevant Employee who Ceases Employment Assumption: Employee ceased employment on or after February 1, 2003 Upon Termination

of Employment Last Contribution Period Ends On

Last Contribution Day

Non Casual Employee

Casual Employee

If all outstanding income becomes payable on cessation of employment e.g. An employee ceases employment on Sep 10, 2013 and all income has been paid on Sep 10, 2013

Last day of employment Sep 10, 2013

10th day after the last day of the calendar month in which the employee ceases employment i.e. Oct 10, 2013

10th day after the last contribution period ends i.e. Sep 20, 2013

If part of the income becomes payable after cessation of employment e.g. An employee ceases employment on Sep 10, 2013 but he/she will be paid on Oct 31, 2013

Employer performs its legal obligation to pay the last payroll Oct 31, 2013

10th day after the last day of the calendar month in which the last payroll is paid to the employee i.e. Nov 10, 2013

10th day after the last contribution period ends i.e. Nov 10, 2013

2.4.7 Last Contribution for Employee Attaining Age 65 Effective from October 1, 2004*, if an employee reaches the age of 65, both the employer and the employee are required to make mandatory contributions for the relevant income earned before the employee’s 65th birthday. If the employee remains in the same employment, NO mandatory contribution is required to be made for any income earned by the employee thereafter. Employer should calculate and report the due amount of relevant income and the contribution data, and settle the contributions on or before the tenth day after the last date of the calendar month in which the employee attains the age of 65. * For arrangement prior to the Guideline amendment that came into operation effective October1, 2004, please refer to the relevant legislation or guidelines, or contact Manulife for assistance if in doubt.


2.4.8 Points to Note DO's a. Employer is required to report employee termination timely, either via our e-MPF

Online Services platform (providing no LSP/SP offsetting arrangement is involved); or by using a "Notice of Employee Termination" form. If LSP/SP offsetting is required, the form should be duly signed by both the employer and the terminated employee to acknowledge and agree on the offsetting arrangement.

b. Employee termination may also be reported using the “Notice of Termination for

Multiple Employees” or “Remittance Statement”. c. Employer should report the last contribution data and make last contribution

payment on or before the 10th day after the last day of the calendar month in which the employee ceases employment together with the regular reporting and payment of other employees (applicable to employees terminating their services on or after February 1, 2003).

d. Employer is required to settle all outstanding contributions and calculation

discrepancy (if any) and surcharges (if any) for each employee, otherwise, member termination may not be processed promptly. In addition, transfer of accrued benefits may also be delayed when the employer requests to make a plan transfer.

DON'Ts a. If an employee terminated had been reported via e-MPF Online Services platform,

please DO NOT submit a hard copy form again in order to avoid confusion.

b. Employer needs not issue a separate cheque payment to settle the last contribution of the terminated employee. The concerned member’s last contribution data and payment can be reported and submitted together with that for the other active members.


SECTION 3: ADMINISTRATIVE FORMS You can download all commonly used forms from our website: www.manulife.com.hk. Most administration functions can be performed directly online via our e-MPF Online Services platform. (See Appendix C for more details) SECTION 4: OUR SERVICES You are always welcome to make inquiries through the following channels. 4.1 e-MPF Employer Online Services 4.2. Manulife Employer Hotline

(852) 2108 1234 Operating hours: Mon – Fri from 9:00am – 6:00pm (except public holidays)

Manulife has a call center with professional customer service officers who are always at pleasure to answer inquiries and provide any necessary assistance to customers. 4.3. Customer Contact Center Causeway Bay Customer Service Center 23/F, Lee Garden One, Service Hours: 33 Hysan Avenue, Monday to Friday 9:00am to 6:00pm Causeway Bay, Closed on Saturday, Sunday and Public Holidays Hong Kong Kwun Tong Customer Service Center 21/F, Tower A, Service Hours: Manulife Financial Centre, Monday to Friday 9:00am to 6:00pm 223-231 Wai Yip Street, Closed on Saturday, Sunday and Public Holidays Kwun Tong, Kowloon, Hong Kong 4.4. Office of Employee Benefits Department 21/F, Tower A, Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong 4.5. Quality Intermediary Service Should you need a more in-depth understanding of our MPF scheme, our registered MPF Intermediaries are always ready and willing to provide support to you. They are all well-trained professionals offering exemplary standard of service.



Appendix Appendix A: A Casual Employee is employed on Sep 4, 2017 and is above 18 years old when employed. Assumptions: • Employee, aged over 18 and less than 65, joined the company on Sep 4, 2017. • He is paid monthly for service from the 1st to the last day of the month (contribution

period).

*The deadline for enrolment or paying the first contribution will be postponed to the next following working day if it falls on a Saturday, public holiday, gale warning day or black rainstorm warning day.

September SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9 10 11 12 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Enrolment

1st day of employment 2017/09/04

Deadline for enrolment:

10th day of employment 2017/09/13

First Contribution

Deadline for paying the first contribution* 2017/10/10


Appendix B: Enrolment and contribution requirements for members attained age 18 with effect from Sep 18, 2017 Assumptions: • An employee joined the company on September 4, 2017. He attained the age of 18 on

September 18, 2017. • He is paid monthly for service from 1st day to the last day of the month. • His monthly relevant income is $15,000.

*The deadline for enrolment or paying the first contribution will be postponed to the next following working day if it falls on a Saturday, public holiday, gale warning day or black rainstorm warning day.

September SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

October SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9 10 11 12 13 14

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

November SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9 10 11

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

December SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Enrolment

1st day of employment 2017/09/04

Employee’s 18th Birthday 2017/09/18

Deadline for Enrolment*: 60th day after Employee’s 18th Birthday

2017/11/16

First Contribution

30th day after Employee’s 18th Birthday 2017/10/17

Employer Contributions commence on 2017/09/18

Employee Contributions commence on 2017/11/01

Deadline for paying the first contribution* 2017/12/11


First Mandatory Contributions due by Dec 11, 2017

Payroll Period (yyyy/mm/dd)

Relevant Income (HKD)

Mandatory Contributions (HKD)

Employee Employer

2017/09/04 - 2017/09/30 13,500 a 0 b 325 c

2017/10/01 - 2017/10/31 15,000 0 d 750

2017/11/01 - 2017/11/30 15,000 750 750 Note: a) Since the date of employment is September 4, 2017, the Relevant Income = $15,000 x 27 days / 30

days = $13,500 b) Employee Contributions for the first 30 days of employment after the employee attained age 18

(“contribution holiday”) is not required while Employer Contributions are calculated from the 1st day of employment or the day when employee attained age 18 whichever applicable.

c) Employer Contributions from September 18, 2017, $13,500 x 5% x 13 days* / 27 = $325 *For employees attained age 18 on September 18, 2017, there are only 13 contribution days for payroll period of Sep 17.

d) Employee Contributions for the 1st incomplete payroll period immediately following the contribution holiday is not required.


Appendix C: Our e-MPF Online Services enable employers to handle all MPF administration process from member enrolment, contribution data reporting, employee termination reporting^ to contact information updating, statement/report viewing and general account management.

To learn more about the digital tools that Manulife offers for employers to handle routine MPF administration matters, please click to view the documents or video below: Function Guide Demo

Video

Log in to your e-MPF account and get started -

For employee enrolment

For contribution making of regular submission or non-enrolled new members

For member update including employee termination reporting ^

For rectifying calculation discrepancy

^Online reporting of employee termination is only applicable to termination that does not involve Severance Payment or Long Service Payment. These demo videos are also available on our website at www.manulife.com.hk. ACT NOW to explore many other account administration functions that can be performed online. Log in to your account and experience the convenience of just taking a few simple steps to get things done !

https://www.manulife.com.hk/content/dam/insurance/hk/en/documents/products/mpf/e-enrolment-leaflet.pdf

https://www.youtube.com/watch?v=v4ZJ4PlMEws&feature=youtu.be

https://youtu.be/rH7EnanrU-Q

https://youtu.be/FvWKOP0QIdo


https://youtu.be/rH7EnanrU-Q


https://youtu.be/TUvwwCddOnw



https://www.manulife.com.hk/content/dam/insurance/hk/en/documents/products/mpf/replying-calculation-discrepancy-report-online.pdf

https://www.manulife.com.hk/en/corporations.html

Documents

Manulife Global Select (MPF) Scheme Employer Operation Manual · 2021. 1. 15. · Brochure of Manulife Global Select (MPF) Scheme. 1.2 Getting Started With Manulife MPF Scheme 1.2.1