Preliminary statistics by the Mandatory Provident Fund Schemes Authority (MPFA) show there were about 7,100 applications for MPF exemption based on the Occupational Retirement Schemes Ordinance (Orso) registered scheme by the May 3 deadline.
Undoubtedly, there are a number of employers who have not decided on their Orso/MPF interface strategy and just lodged applications for MPF exemption to keep their options open.
Technically speaking, pursuant to Section 15 of the Mandatory Provident Fund Schemes (Exemption) Regulation, an employer 'shall, as soon as practicable after an application has been made' give and brief its employees (in the prescribed manner) the choice between remaining in the Orso registered scheme or migrating to the MPF scheme that the employer has chosen and arranged for its employees to join.
Employers must ensure that they to make a decision no later than 50 days before December 1.
There are some concerns as to whether once an application for MPF exemption is made, employees are given the option to remain in the Orso scheme if they wish.
Would this mean that without the employees' consent, employers who have got exemptions, could still wind up the Orso scheme and only provide employees with the MPF scheme (even with top-up contributions)? There is no straightforward answer to this question as there are different aspects to consider. It seems the majority view is 'no', at least before an exemption certificate is issued.