MPF exam MPF Schemes and Investment question: employees accrued benefits to a different MPF scheme

Answer: D. recognises the employees' prior service and assumes the old employer's LSP and SP liability

Answer: recognises the employees' prior service and assumes the old employer's LSP and SP liability. On a change in ownership, the new employer may transfer employees' accrued benefits to another scheme if it has agreed to recognise their length of employment with the previous employer and has assumed the previous employer's liability for long service or severance payments.Why not the others:• terminates the employees and rehires them on new contracts: the transfer route depends on recognising prior service, not on termination.• obtains the consent of the MPFA and pays each employee a transfer bonus: the conditions are recognition of service and assumption of liability, not MPFA consent or a bonus.• waits until each employee's next birthday to avoid disturbing DIS de-risking: DIS timing has nothing to do with this transfer right.Watch out: Candidates think the MPFA must consent.Rule: Recognise service + assume LSP/SP liability → may change scheme.Source: MPF Study Notes, Tenth Edition (June 2026), 5.9(d)