Terminally ill Hong Kong workers to gain right to access MPF contributions

Workers who suffer a terminal illness will soon be able to cash in their Mandatory Provident Fund in a move that would free up account holders' money for costly medical bills, the South China Morning Post has learned.

Doctors and MPF providers have been consulted on the proposed reform that the Mandatory Provident Fund Schemes Authority expects to make available to pension-plan holders from this summer.

Yet to be determined is just how sick a person needs to be before doctors can sign off on their early access to MPF funds, with some suggesting that the criteria should include those with a life-threatening condition whose survival prospects may be boosted by the ability to pay for better medical care.

MPFA chief operating officer Alice Law Shing-mui said talks with doctors and MPF providers had looked into how the early redemption process could be managed, under what she called the final stage of preparations. The reform marks the latest effort by the authority to add flexibility to a pension scheme that has long been unpopular with workers for its high fees and poor returns.

"The MPFA is very keen on having this reform done this year. Hopefully by summertime people can start to submit their applications," Law said.

Now, workers can get hold of their MPF contributions only when they reach the age of 65, unless they leave Hong Kong permanently or are deemed to have lost the ability to work. The move to broaden the criteria comes after lawmakers last month approved a law change to add "terminal illness" to the conditions for fund redemption.