Asset switch

To switch all or some of the units from one fund or funds and then re-allocate the redeemed amounts to another fund or across any of the funds. The investment allocation of your new contributions (including but not limited to future transferred amounts) will remain unchanged.

Back-payment

Any payments made to an employee relating to an earlier period arising from a salary adjustment or a time lag for ascertaining the payment amount.

Bid Price

Bid price is the transaction price for redeeming units in a constituent fund after fees and charges are deducted from the net asset value per unit of the fund (if applicable).

Casual employee

Employees who are engaged in the construction or catering industries, and are employed on a day-to-day basis or for a short-term fixed period of less than 60 days, and aged between 18 and 65.

Class

A mechanism to distinguish between employees with different benefits in respect of the employer's additional voluntary contributions.

Contribution day

The day by which an employer is required to pay mandatory contributions for their employees (or by which a self-employed person must make his/her mandatory contributions) to the trustee of the relevant MPF scheme.

1. For non-casual employees - the 10th day after the last day of a calendar month within which the contribution period ends (or the 10th day after the last day of the month during which the permitted period ends if this is a later date).
2. For casual employees under Master Trust Schemes - the 10th day after the last day of the contribution period (or the 10th day after the last day of the contribution period during which the permitted period ends if this is a later date).
3. For self-employed persons - the last day of the contribution period.

Default Investment Strategy (‘DIS’)

A ready-made investment arrangement mainly designed for those members who are not interested or do not wish to make an investment choice, and is also available as an investment choice itself, for members who find it suitable for their own circumstances. For those members who do not make an investment choice, their contributions and accrued benefits transferred from another Registered Scheme will be invested in accordance with the DIS.

The DIS aims to balance the long term effects of risk and return through investing in two constituent funds, namely the Core Accumulation Fund and the Age 65 Plus Fund, according to the pre-set allocation percentages at different ages. The DIS will manage investment risk exposure by automatically reducing the exposure to higher risk assets and correspondingly increasing the exposure to lower risk assets as the member gets older.

For further details of the DIS, please refer to the relevant ‘Principal Brochure’.

Early retirement

A member who is between the ages of 60 and 64, and has permanently ceased employment or self-employment.

Employee

Employees are those:

1. employed for 60 days or more under a continuous contract of employment, or
2. casual employees engaged in the construction or catering industries and employed on a day-to-day basis or for a short-term fixed period of less than 60 days.

1. domestic employees
2. self-employed licensed hawkers
3. people covered by statutory pension or provident fund schemes, such as civil servants and subsidised or grant school teachers
4. members of occupational retirement schemes which are granted exemption certificates
5. people from overseas who enter the Hong Kong SAR for employment for less than 13 months, or who are covered by overseas retirement schemes
6. employees of the European Union Office of the European Commission in the Hong Kong SAR

Mandatory contributions

The statutory level of contributions set by the MPF legislation.

Maximum level of relevant income

The statutory maximum level of relevant income set by the MPF legislation for the purpose of calculating mandatory contributions.

1. If an employee's relevant income is higher than the maximum level, both the employer and employee are only required to contribute 5% of the maximum level of relevant income.
2. If a self-employed person's relevant income is higher than the maximum level, he/she is only required to contribute 5% of the maximum level of relevant income.

1. If an employee's relevant income is lower than the minimum level, the employee does not need to make mandatory contributions but the employer is still required to do so.
2. If a self-employed person's relevant income is lower than the minimum level, he/she does not need to make mandatory contributions.