The basic premise of the system is to ensure people are adequately provided for upon reaching retirement age. The Ordinance was amended in March 1998 and supplemented by two sets of Regulations enacted in April 1998, which set out the standards and detailed requirements governing the operation of the MPF system. The Government has announced in March 1999 the MPF target implementation date. According to the target schedule, MPF products will be available in the market in February 2000 and mandatory contributions will start in December 2000. Voluntary Contributions Employers, employees and self-employed persons may elect to contribute voluntarily in addition to the mandatory contribution.
Voluntary contributions paid are subject to the scheme rules.
The immediate vesting, portability and preservation rules of the MPF system need not apply. Amongst other things, trustees are required to submit returns, financial statements and auditor's reports to the MPFA on a regular basis. The Authority may also conduct field inspections, special audits and investigations, and impose sanctions on trustees which breach legislative requirements. Self-employed persons will also be eligible for an equivalent deduction under the Profit Tax regime. Employers and members should seek professional advice regarding their own particular tax circumstances.