Introduction

The Mandatory Provident Fund Schemes Authority (“MPFA”) recently reported on the convictions of two mandatory provident fund (“MPF”) scheme members under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (“MPFSO”) for making false or misleading statement to an MPF trustee when making early withdrawal application. The two scheme members applied to MPF trustees for early withdrawal of MPF on the grounds of permanent departure from Hong Kong and their applications were approved in December 2006 and April 2013 respectively. Subsequently, they applied to another MPF trustee for early withdrawal on the same ground again in April and May 2018 respectively while falsely declaring that they had not previously been paid any MPF on the same grounds of permanent departure from Hong Kong. Upon MPFA’s verification with previous claim records, MPFA discovered that they made false statements and reported to the Police. They were charged and sentenced to one and two months’ imprisonment respectively with two-year suspension.

Under the MPFSO, scheme members may only withdraw the accrued benefits under the MPF upon reaching the retirement age currently set at 65. However, there are certain exceptions entitling scheme members to make early withdrawal application, one of them being a scheme member’s permanent departure from Hong Kong.

Permanent departure from Hong Kong

Pursuant to sections 15(2) and 15(3) (Withdrawal of Accrued Benefits) of the MPFSO, a scheme member’s permanent departure from Hong Kong entitles him, as of right, to be paid the entirety of his accrued benefits in his MPF scheme without having to attain the age of 65. Scheme members intending to exercise their rights of early withdrawal of MPF benefits are required to make a statutory declaration that they will depart or have departed from Hong Kong to reside elsewhere with no intention of returning for employment or to resettle in Hong Kong as a permanent resident.

Important alert

Scheme members who intend to apply for early withdrawal of their MPF on the ground of permanent departure from Hong Kong (or on other permitted grounds) should take heed of section 43E (Offence to make false or misleading statement) of the MPFSO. Any person making a false or misleading statement to a trustee of MPF commits an offence and is liable on conviction to a maximum fine of HK$100,000 and one year’s imprisonment on the first occasion, followed by a maximum fine of HK$200,000 and two year’s imprisonment on any subsequent occasion. The MPFA has repeatedly reminded scheme members to stay away from crime syndicates abetting the making of false statutory declarations for early withdrawal of MPF. Those who do not wish to run the risk of breaching the law should stay alert to falling prey to these crime syndicates and consult the MPFA if necessary.