Glossary

Note: The information contained herein is for reference only and the provisions in the relevant legislations shall prevail.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accrued Benefit

Accrued benefit is the total contributions made by an employee and his/her employer or by a self-employed person plus the investment return (profit or loss) on the contributions.


Administrator

One of the parties involved in the MPF framework, responsible for the record keeping of MPF schemes.

Please also refer to "Approved Trustee".


Approved Pooled Investment Fund

An investment fund which is approved and authorised by the MPFA and SFC for MPF purpose.


Approved Trustee

One of the parties involved in the MPF framework, responsible for monitoring the performance of all service providers (i.e. administrator, custodian and investment managers) of an MPF scheme. It must be approved by the MPFA.

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Custodian

One of the parties involved in the MPF framework, responsible for custody of scheme assets.

Please also refer to "Approved Trustee".

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Investment Manager

One of the parties involved in the MPF framework, responsible for investment of scheme assets.

Please also refer to "Approved Trustee".

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Long Service Payment

An employer should pay long service payment when an employee who has been employed under a continuous contract for not less than 5 years,

  • is dismissed by reason other than serious misconduct or redundancy;
  • is certified by a registered medical practitioner as permanently unfit for the present job and he resigns;
  • is aged 65 or above and he resigns; or
  • dies in service.

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Mandatory Provident Fund Schemes Authority (MPFA)

The MPFA is responsible for ensuring compliance with the Mandatory Provident Fund Schemes Ordinance, regulating the affairs and activities of approved trustees and so on.


Mandatory Contribution

It is the amount of contribution which is required to be paid under the Mandatory Provident Fund Schemes Ordinance. The contribution rate is 5% of Relevant Income for both employers and employees, or 5% of assessable profits for self-employed persons, subject to a minimum and maximum amount.

Please also refer to "Relevant Income".


Master Trust Scheme

An MPF scheme which is available for employees of more than one employer, self-employed persons and persons who have accrued benefits transferred from another registered scheme.


MPF Service Provider

MPF service provider includes Administrator, Custodian and Investment Manager appointed or engaged by Approved Trustee.

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Relevant Income

  • In the case of a relevant employee, any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance, 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);
  • In the case of self-employed person, the calculation of relevant income is basically linked to his/her assessable profits that are calculated in accordance with the Inland Revenue Ordinance.

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Securities and Futures Commission (SFC)

The SFC is responsible for administering the laws governing the securities and futures markets in Hong Kong and facilitating and encouraging the development of these markets.


Severance Payment

An employer should pay severance payment when an employee, who has been employed under a continuous contract for not less than 24 months, is dismissed by reason of redundancy or is laid off.

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Voluntary Contribution

Contributions made by employers, employees and self-employed persons other than Mandatory Contributions. Voluntary contributions made by employers may be subject to scheme rules set by the participating employers.

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