Loading…
IIQEPrepStudyingPaper 1
Switch exam
MPF intermediaries
MPFMPF Intermediaries ExaminationIIQE MPF · Topic 6
MPF exam chapter 6 (4% of the paper): how ORSO schemes differ from MPF schemes, ORSO registered versus ORSO exempted and MPF exempted schemes, the new employee's choice, minimum MPF benefits, and what employers did with their ORSO schemes when MPF began.
7 min read5 sections
Checked against the MPF Study Notes, Tenth Edition (June 2026; for exams from 1 Oct 2026), chapter 6, and the MPFA's ORSO pages (Providing Employees with Options, last reviewed 4 Aug 2026; ORSO employee FAQ). Reviewed 6 Nov 2026.. Independent prep, not endorsed by the MPFA or any examination provider.
Chapter 6 is 4% of the paper, about three questions. Most turn on two ideas: how an MPF exempted ORSO scheme differs from an MPF scheme, and the minimum MPF benefits formula.
An ORSO scheme is a retirement scheme an employer sets up voluntarily to pay pensions, gratuities or other benefits on retirement, death or leaving service. Apart from MPF schemes and a few exceptions, every retirement scheme operated in or from Hong Kong must be either registered or exempted under ORSO (Cap. 426), and the MPFA is the Registrar.
| Feature | MPF scheme | ORSO scheme |
|---|---|---|
| Benefit type | Always defined contribution | Defined contribution or defined benefit (hybrids count as defined benefit) |
| Participation | Mandatory | Voluntary |
| Governing law | Hong Kong | May be the law of a place outside Hong Kong |
| Vesting of employer contributions | Mandatory contributions vest 100% immediately | Set by the scheme's governing rules |
| Trustee approval | Approved trustee required | Required only for MPF exempted ORSO registered schemes |
Every note. Every question. One pass.
3 more sections of this note are part of Premium.
Passes from HK$148, pay once, no auto-renew
For a new member of an MPF exempted ORSO registered scheme, the lesser of the benefits accrued while the exemption applied, or 1.2 x final average monthly relevant income (capped at $30,000 from 1 June 2014) x years of post-MPF service. They follow MPF preservation, portability and withdrawal rules.
Yes, where the employer runs an MPF exempted ORSO scheme open to new staff. The employer must offer the choice within 10 days of the employee becoming eligible; the employee replies in writing within 30 days, or is treated as choosing MPF (MPFA, last reviewed 4 Aug 2026).
| Preservation and portability | Statutory rules for all mandatory benefits | Only minimum MPF benefits of new members in MPF exempted ORSO registered schemes |
Defined contribution: both contribution rates are fixed and the benefit is the contributions plus returns. Defined benefit: the benefit follows a formula (age, service, final average salary) and the employer's contribution rate is set on an actuary's advice.
Trap: an ORSO scheme's employer contributions need not vest immediately. An MPFA FAQ notes that under some ORSO schemes a member with under three years' service may get none of the employer's contributions.
Takeaway: MPF = mandatory, defined contribution, Hong Kong law, instant vesting. ORSO = voluntary, either type, vesting by scheme rules.
Where an employer runs an MPF exempted ORSO scheme that is open to new staff, a new eligible employee must be offered the choice between that scheme and an MPF scheme, with enough information in Chinese and English to decide.
| Step | Deadline |
|---|---|
| Employer offers the choice | No later than 10 days after the employee becomes eligible |
| Employee replies in writing | No later than 30 days after becoming eligible |
| No reply in time | The employee is treated as having chosen the MPF scheme |
A new member of an MPF exempted ORSO registered scheme gets a protected core of benefits, the minimum MPF benefits (MMB). MMB is the lesser of:
MMB can be paid out only at 65, early retirement at 60, permanent departure, total incapacity, terminal illness or death, and on a change of job must generally move to an MPF scheme. A trustee cannot forfeit MMB on dismissal for cause, for existing or new members.
A worked case. Mei joined an exempted ORSO scheme in 2018 and leaves in 2026 after exactly 8 years, with final average monthly relevant income of $36,000 and $310,000 accrued while the exemption applied. The formula gives 1.2 x $30,000 (the cap) x 8 = $288,000. MMB is the lesser figure, $288,000, which must stay preserved under MPF rules; the other $22,000 is dealt with under the scheme's own rules.
Trap: existing members (joined on or before 1 December 2000) are not bound by the MMB preservation, portability and withdrawal rules. MMB rules bite on new members.
Takeaway: offer in 10 days, reply in 30, silence means MPF. MMB = lesser of accrued benefits or 1.2 x capped income x post-MPF years.