HAPFS - Overview

Hospital Authority Provident Fund Scheme ("HAPFS") is an ORSO scheme established to provide retirement benefits to Hospital Authority ("HA") employees. Upon joining HA, all permanent employees are offered a one-off irrevocable option to join either the HAPFS, or the MPF Scheme.

It is required by law that you advise HA your option no later than 30 days after your commencement of employment. If you fail to do so, you will be deemed to have chosen the MPF Scheme.

Here you will find more information about the HAPFS and the MPF Scheme. Knowing such details as how contribution is handled and how you may withdraw your benefits, etc. is crucial in making your decision between the two schemes.

Eligibility		Contribution		Withdrawal of Benefits		Comparison Summary of the HAPFS and the MPF Scheme

HAPFS

Permanent employees.

MPF Scheme

All employees aged between 18 and 65 who have completed 60 days or more of employment with HA.

HAPFS

HA's current contribution rate is 15% of basic salary.

You are not required to make any contribution.

MPF Scheme

Mandatory Provident Fund Schemes Ordinance requires that both the employer and the employee make
mandatory contribution for an amount equivalent to 5% of the employee relevant income up to a maximum income cap of $25,000. Employees with a relevant income less than $6,500 in a particular month are not required to make mandatory contribution for that particular month. As an MPF Scheme member, you are required to make employee mandatory contribution. You may also make employee voluntary contribution to your MPF account.

To ensure the same contribution level is maintained in both the HSPFS and the MPF Scheme, HA's 15% contribution is broken down into the following 3 components in the MPF Scheme:

a.	employer mandatory contribution;
b.	MPF Supplementary Payment, which is equal to the amount of the employee mandatory contribution that you are required to make; and
c.	an amount of employer voluntary contribution equivalent to the balance of 15% of your basic salary minus the above employer mandatory contribution and MPF Supplementary Payment.

HAPFS

If you leave HA and your last date of employment is notified to the HAPFS Trustees prior to a designated cut-off time in the calendar month preceding your month of departure (Cut-off Time), your balance will be redeemed based on the valuation as at the last calendar day of the month prior to your last date of employment.
However, if your last date of employment is only notified to the HAPFS Trustees after the Cut-off Time, your balance will be redeemed on the next available valuation date in the month of your departure and the payment of the benefits to you may take longer.

If you joined HAPFS on or before 1.12.2000.......

on leaving HA services, except as a result of dismissal, you will receive a lump sum. In case of retirement, you may withdraw your entire account balance in full.
If you are summarily dismissed from employment, you will only be entitled to the Minimum MPF Benefit, which will still be paid to you in a lump sum.

If you joined HAPFS after 1.12.2000 .......

Upon leaving HA, an amount equivalent to the MMB shall be preserved until you meet any of the withdrawal criteria under the MPFSO. However, you will receive a lump sum equivalent to the vested portion of your account balance in excess of the MMB.
If you are summarily dismissed from employment, you will only be entitled to the Minimum MPF Benefit (MMB). However, such MMB shall be preserved until you meet any of the withdrawal criteria under the Mandatory Provident Fund Schemes Ordinance.

MPF Scheme

(A) Mandatory Contribution

When you leave HA, you may transfer all the employer and employee mandatory contribution balance to:

a.	a personal account in the Invesco Strategic MPF Scheme; or
b.	the MPF scheme in which your new employer participates; or
c.	any other registered MPF scheme of your choice.

All mandatory contribution balance can only be withdrawn under the withdrawal criteria specified under the Mandatory Provident Fund Schemes Ordinance, including:

a.	Retirement at the age of 65
b.	Early retirement at the age of 60
c.	Permanent departure from Hong Kong
d.	Total incapacity
e.	Death
f.	Small balance in the MPF scheme account(s). This applies when the accrued benefits are equal to or less than $5,000 and no mandatory contributions are paid over the past 12 months and there are no accrued benefits in other MPF schemes.

(B) Voluntary Contribution

You may withdraw all the employee voluntary contribution balance when you leave HA. The employer voluntary contribution balance will be released subject to the vesting scale of the MPF Scheme.
If you are summarily dismissed from employment, you will not be entitled to any employer voluntary contribution balance.

HAPFS

MPF Scheme

Scheme
Arrangement

Trust

Governing Law

Hong Kong

Name of Trustee

Mr. John LEE Luen-wai, BBS, JP (Chairman)
Ms. LAU Ka-shi
Mr. Raymond LEE Wing-hung
Mr. Peter LO Chi-lik
Mr. Patrick MA Ching-hang, BBS, JP
Mr. Alan Howard SMITH, JP
Ms. Nancy TSE Sau-ling, JP
Ms. Janice TSE Siu-wa, JP
Dr. WONG Chi-Keung - PYNEH*
Dr. WONG Tak-cheung -OLMH*
Mr. Barry NG Kwok-hing - CMC*
Dr. Ernest MA Hon-ming - TPH*

* Employee Trustee

Bank Consortium Trust Company Limited

Name of Administrator

HSBC Institutional Trust Services (Asia) Limited

Bank Consortium Trust Company Limited

Nature of Scheme

Defined Contribution

Eligibility to Join Scheme

Permanent employees

All employees aged between 18 and 65 who have completed 60 days or more of employment with HA

Contribution

HA's current contribution rate is 15% of basic salary.

Members are not required to contribute.

For permanent employees, HA will

a.	make employer mandatory contribution,
b.	provide MPF Supplementary Payment, which is equivalent to the employee mandatory contribution and
c.	make employer voluntary contribution which is equal to the balance of 15% of the members basic salary minus the sum of items a) and b).

For non-permanent employees, HA will only make employer mandatory contribution.

All members are required to make employee mandatory contribution. HA shall deduct such amount from the members monthly payroll.

Definition of Income for the Purpose of contribution

Basic Salary

Relevant Income

Vesting Rights

Subject to HAPFS's vesting scale.

Full and immediate vesting for mandatory contribution and employee voluntary contribution.

Employer voluntary contribution is subject to the scheme's vesting scale.

Payment of Benefits

At retirement, death, disability, redundancy, or termination of service.

Mandatory contribution balance will only be paid under the withdrawal criteria specified under the Mandatory Provident Fund Schemes Ordinance.

Portability and Preservation of Benefits

Members who chose to join the HAPFS must preserve their MMB in accordance with the Mandatory Provident Fund Schemes Ordinance.

Mandatory contribution balance must preserve in accordance with the Mandatory Provident Fund Schemes Ordinance.

Normal Retirement Age

Investment Choice

6 investment choices:

Global Equity Fund
Growth Fund
Balanced Fund
Conservative Fund
Global Bond Fund
Money Market Fund

8 investment choices:

Hong Kong and China Equity Fund
Asian Equity Fund
Growth Fund
Balanced Fund
Capital Stable Fund
Global Bond Fund
Guaranteed Fund
MPF Conservative Fund

Investment Risk

Borne by members

Scheme Expenses

Scheme expenses¹ are deducted from members account balance monthly on an accrual basis and are borne by members.

Scheme expenses² are deducted from the daily fund price and are borne by members.

Each fund under the MPF Scheme also bears other miscellaneous charges and expenses as set out in the Trust Deed.

Compensation Levy

Nil

0.03% p.a. as imposed by MPFA

Deducted at the scheme's year-end (i.e. March 31)

¹Scheme Expenses for HAPFS

	Estimated All-in Fees (%p.a.)
Global Equity Fund	0.6% - 0.8%

Growth Fund	0.5% - 0.7%
Balanced Fund
Conservative Fund
Global Bond Fund

Money Market Fund	0.3% - 0.4%

²Management Fees for MPF Scheme

	All-in Fees (%p.a.)
Hong Kong and China Equity Fund	1.075%
Asian Equity Fund
Growth Fund
Balanced Fund
Capital Stable Fund
Global Bond Fund

Guaranteed Fund*	2.675%

MPF Conservative Fund	0.663%

*Fees quoted include guarantee fee of 1% p.a.

For enquiries concerning the operation of HAPFS and the MPF Scheme, please reach either the MPF contact person(s) of your respective hospital, or call INVESCall Member Hotline for HA Employees on 3191 8088 and speak to our Member Services Executives.