1. MPF Comparison of Pension Funds between HK & Japan

2. Introduction Before 1.1.2000 --- Occupational Retirement Schemes.
After Mandatory Provident Fund (MPF).

3. MPF is established by legislation in 1995.
MPF is a retirement protection system for the entire working population of Hong Kong.
MPF system covers all employees and self-employed people aged between eighteen and sixty-five.

4. MPF is subject to the Mandatory Provident Fund Schemes Ordinance.

5. Contributions in Japan
appropriate
& reasonable
financial
balance
Manner
Should be
maintained
Contributions
in Japan
A comparison of assets
and liabilities
Minimum Funding
requirement

6. Contribution of HK’s MPF Scheme:
Mandatory contributions
Voluntary contributions

7. Mandatory contributions
On the basis of 5% of an employee's relevant income, with the employer matching the employee's contribution
Self-employed persons also have to contribute 5% of their relevant income
Self-employed persons can opt to make contributions on a monthly basis or a yearly basis

8. Minimum and maximum levels of income
Mandatory contributions are subject to the minimum and maximum levels of income
$5,000 and $20,000 per month respectively

9. Employees income ↓ $5,000 a month :
Employees -- do not need to contribute
Employers -- contribute 5% of the
employees' income
Employees income↑$20,000 a month:
Employees / Employers -- each party contribute 5% of the employees’ income

10. The above minimum and maximum income levels also apply to self-employed persons

11. Voluntary contributions
Employers, employees and self-employed persons can opt to make extra, voluntary contributions in addition to the mandatory contributions.

12. Voluntary contributions
From employers
From employees

13. From employers Depend on working years or level
Fixed percentage of salary

14. From employees Fixed amount each month
Fixed percentage of basic salary
Fixed percentage of relevant income

15. Voluntary contributions
Different investment allocation between mandatory contribution and voluntary contribution

16. Benefits in Japan “appropriate and reasonable”
“old age benefits” in annuity form
Benefits in Japan
no earlier than age 60 and no later than age 65
Under corporate and personal income tax laws, inheritance tax law, and local (prefecture) tax law.

17. Benefits Withdrawal
scheme members can only claim for payment of their accrued benefits when they attain the retirement age of 65 as stipulated in the Ordinance.
However, there are circumsctances under which acrued benefits may be paid before the attainment of retirement age:

18. has retired early and attained age 60; or 
permanently departs Hong Kong; or  
has become totally incapacitated; or
has died (MPF will be regarded as part of the member's estate and can be claimed by the personal representative of estate); or

19. has a small balance account of less than $5,000, has not made contributions to a scheme for 12 months, and has declared not to become employed or self-employed within the foreseeable future.

20. ~M.C Questions~

21. What ages are cover by MPF & NPF separately?
18-65 & 20-60
18-60 & 20-65
20-60 & 18-60
20-65 & 18-65

22. What is the manner of Japan’s NPF contribution?
Appropriate and balance
Reasonable and balance
Appropriate and reasonable
Noun of the above

23. How many percentages the employer and employee should contribute if the employees’ salary is below $5000?
5% and 5%
5% and 10%
10% and 0%
5% and 0%