About two-thirds of AXA China Region's pension customers are expected to wind up their retirement plans and transfer the assets to Mandatory Provident Fund (MPF) schemes, according to a company executive. 'It is a wise decision for the small companies not to apply for exemption from the MPF plans,' general manager of MPF and employee benefits Alex Cheung Kim-fung said. 'If the companies employ only a few staff, it doesn't make any sense for them to run two pension schemes at the same time.' All retirement plans set up under the Occupational Retirement Schemes Ordinance (Orso) must apply for exemption to the Mandatory Provident Fund Schemes Authority before May 3 to keep present schemes running after MPF is implemented in December. After the companies are exempted, they will need to run Orso and MPF at the same time. Mr Cheung said about 600 of the company's 1,800 Orso scheme clients decided to apply for exemption. 'They would have the resources needed to support them to run two pension plans - Orso and the MPF, at the same time,' he said. It would allow their staff to choose to join either the Orso or the MPF. For the rest of about 1,200 schemes which do not apply for exemption, they would wind up the Orso schemes and transfer all assets to the MPF plans, he said.