MPF exam ORSO / MPF Interface question: minimum MPF benefits (2)

Answer: A. $150,000

Answer: $150,000. The minimum MPF benefits are the lesser of the accrued benefits and the formula amount.Working:1. Income of $25,000 is below the $30,000 cap, so use $25,000.2. Formula: 1.2 x $25,000 x 6 = $180,000.3. Minimum MPF benefits = lesser of $150,000 and $180,000 = $150,000.Why not the others:• $180,000: that is the formula amount; the rule takes the lesser figure, which here is the accrued benefits.• $216,000: that applies the $30,000 cap as if it were the member's income, instead of the actual $25,000.• $330,000: that adds the two figures together instead of taking the lesser.Watch out: Taking the formula result even when the accrued benefits are lower.Rule: Minimum MPF benefits = the LESSER of accrued benefits and 1.2 x capped income x years of post-MPF service.Source: MPF Study Notes, Tenth Edition (June 2026; examinable from 1 Oct 2026), section 6.5.3 (checked 31 Oct 2026)