Treatment of Benefits from Mandatory Contributions in Case of Bankruptcy of MPF Member

KP Chan on treatment of benefits from mandatory contributions in case of bankruptcy of MPF Scheme member:

The Deputy Chairman [KP Chan] enquired whether the MC accrued benefits of a scheme member would be affected if he declared bankrupt at the time when he was eligible for drawing out his MC accrued benefits from the MPF scheme.

The Deputy Secretary for Financial Services and the Treasury (Financial Services) responded that under the legislative proposal, a scheme member’s MC accrued benefits in a registered MPF scheme were excluded from the “property” of the scheme member for the purposes of the Bankruptcy Ordinance (Cap. 6) until the scheme member had withdrawn his accrued benefits derived from mandatory contributions from the MPF scheme.

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