A member of an MPF scheme has lately been jailed for seven days and was suspended for two years under MPFSO after being convicted of making a false statement to an MPF trustee for early withdrawal of MPF on the grounds of settling out of Hong Kong permanently. In some of the other cases where the members of the schemes made false declarations when withdrawing their MPF benefit early for the same reason, they were fined and punished by imprisonment or social service.
Based on the MPFSO rules, members of the MPF are only permitted to take out funds once they reach the age of 65. The early withdrawal of MPF is permitted under special circumstances, such as when you retire early, leave Hong Kong permanently, become totally disabled, have a terminal illness, small balance, or are dead.
To apply for early withdrawal of MPF based on the grounds of permanent departure from Hong Kong, a scheme member must fill in a claim form, and attach a statutory declaration and relevant documents that certify his/her residence can be outside Hong Kong. MPF scheme members can request the early withdrawal of MPF funds based on permanent leave only once during their lifetime. In case MPF scheme members are back in Hong Kong after having withdrawn from the MPF in which they enrolled before and they plan to join another MPF, they cannot apply for early withdrawal of their MPF on the same grounds again. Any individual who gives a false or misleading statement on this issue to the MPFA or MPF Trustees shall be liable to prosecution. On conviction of such an offense, the individual is liable to a maximum fine of HK$100,000 and imprisonment for a term of up to 1 year.
Examples of such cases include crime syndicates which helped MPF members to make sworn statements that they would be permanently leaving in Hong Kong and immediately withdrawing all MPF funds. The MPFA alerts scheme members about these syndicates and how they can avoid becoming victims and getting penalized by the law. They should be on the lookout for suspicious calls and should not release their private information to an unidentifiable third party at all.
The MPFA committee has been taking strict enforcement actions against such people and it has established close communications with respective government departments and conducted investigations on suspected cases to establish whether the applicant has left Hong Kong. Moreover, to determine if the applicant has claimed the same ground before, the MPFA keeps a record of every scheme participant who has terminated their MPF due to a permanent departure from Hong Kong.
The MPF System in Hong Kong serves the purpose of member’s contribution to their retirement savings while they are in their current employment and to prepare early for the future. The MPFA also reminds scheme members that making early withdrawals before the age is not recommended at all because it may affect their retirement savings.
Planning your financial future properly is fundamental. At FastLane Group, we know how the MPF is being regulated and we can help you to go through the process without any trouble. Give us a call to make sure you are compliant and safe regarding your retirement savings. Contact us now!