Pension Plans in Hong Kong and Other countries

ORSO MPF Voluntary basis Force nature. The employer must establish Participation Voluntary basis Force nature. The employer must establish The qualification of participation employees Completes the probation period Completes on 60th to employ the time. Contribution properties Defined Contribution, Defined Benefit Defined Benefit

ORSO MPF Employer Contribution 5-15% 5% Employee Contribution 0-5% 5% Employee/The employer related income and contribute lower limit N/A lower limit is $4,000. Or the monthly salary <$4,000, may choose contribute or not, but the employer must contribute 5%

ORSO MPF Both of them related income and contribute upper limit N/A upper limit is $20,000, if > $20,000, both of them must supply the upper limit 5%, i.e $1,000 must through MPF Scheme Authority approvals Trustees not to have agree Shifts to an earlier time receives contribute the arrangement Does not have transforms when the employer may withdraw After stops being employed reaches 60 years old, then may receive

ORSO MPF Rights of return, contributing which - may bring back The ownership ratio decides according to the period of service: By is different 3 to 10 years. At 65 years old, may draw out the complete employer and the employee contribute, as well as investment growth repayment After receives the ORSO the tax affairs arrangement If to leaves job time and when retirement receives, then may be exempted from tax To 65 years old when receives, also does not need to pay taxes

ORSO MPF Tiredly calculates the rights and interests in leaving job time the arrangement When the employee leaves the present employer, must according to return is the ratio to receive contribute It has 3 choices: Keep the MPF & open a new personal a/c You can accumulate the MPF & take it to new company Can join other MPF scheme. Preserve Agreement No, usually when leaving job withdraws The rights and interests must preserve to 65 years old

The maximum no-tax value is every year $12,000 ORSO MPF The employee contribute tax affairs preferential benefit No The maximum no-tax value is every year $12,000 The employer contribute tax affairs preferential benefit May deduct in the partial profit taxes, but the tax amount not to be possible to surpass the employee the new salary 15% to be limited to every year May deduct the profit taxes, the profit tax quota cannot surpass the employee the new salary 15% to be limited to every year Hong Kong legal regulation supervising and managing Hong Kong or overseas legal regulation supervising and managing Monitoring

Comparison of Hong Kong, Singapore, Canada, US and Germany with their retirement plans

Contribution Withdraw Hong Kong MPF Singapore CPF Canada CPP US 401(k) Type Basic Contribution Withdraw Hong Kong MPF Singapore CPF Canada CPP US 401(k) Germany PAYG DC DC DC DC DB Compulsory Compulsory Compulsory Voluntary Compulsory Employer: -Above or equal to 5%of employee’s relevant income Employer: -Below 50: 13% -age of 51-55 : 9% -age of 56-60: 6% -Above 61: 3.5% Employer: age of 18-70 : 4.95% Employer: -Voluntary Employer: -9.75% Employee: -Salary below $4 000: voluntary -Salary above $4 000: 5% Employee: -Below 50: 20% -age of 51-55: 18% -age of 56-60: 12.5% -age of 61-65: 7.5% -Above 65: 5% Employee: age of 18-70 : 4.95% Employee: -Voluntary Employee: -9.75% Age 65 25 percent of the earnings on which you paid into the CPP Can withdraw as reaches age 59.5, dies, becomes disabled, or incurs hardship. Age 60-64: accepting a 0.3 per cent reduction in pension entitlements for each month Age 65 Employee who participates in this plan can get 100% of funds. When you turn 55... You can withdraw the CPF Minimum Sum in your Retirement Account. The remaining CPF will earns interest and guarantees a minimum interest rate of 2.5% per annum From age 60-65 Reduced by 0.5 percent for each month that you are under 65. Before age 65 Take an oath to stop working after age 60, or become disabled, dies, permanent live outsides Hong Kong. Age 65: pension benefits to 65% of average wages per month. From age 65-70 Increased by 0.5 percent for each month that you are over 65, up to the age of 70.

Conclusion

Member list Sarah Comparison of ORSO & MPF Stephen Comparison of ORSO & MPF Yen Singapore CPF Suki Canada CPP Peggy US401(k) Jason Germany PAYG