The University MPF Scheme Members Briefing Session September 2016 1
The University MPF Scheme – Members Briefing Session Programme Rundown: 1) Presentation by PolyU April Wong (10 mins) Director of Finance PolyU 2) Presentation by FIL Investment Silvia Kong (25 mins) Client Director FIL Investment Management (Hong Kong) Limited 3) Presentation by BOCI-Prudential Anthony Wong (25 mins) Vice President BOCI-Prudential Asset Management Limited 4) Questions & Answers session (15 mins) 2
The University MPF Scheme – Members Briefing Session MPF Relevant Income (“RI”) Max. level of RI: $30,000 (for employer & employee mandatory contribution (“MC”)) Min. level of RI: $7,100 (no employee MC below this level) Contribution calculation Examples for staff on contract gratuity (Basic Member) and regular terms (Class A Member): Basic Member Class A Member $ $ Basic salary 40,000 40,000 Part-time payment 5,000 5,000 MPF RI 45,000 45,000 Employee MC 1,500 ($30k x 5%, up to $1,500) 1,500 ($30k x 5%, up to $1,500) Employee voluntary contributions N/A 500 Total employee contributions 1,500 2,000 ($40k x 5%) Employer MC 1,500 ($30k x 5%, up to $1,500) 1,500 ($30k x 5%, up to $1,500) Employer voluntary contributions N/A (Gratuity of $4,500 p.m. will be 4,500 Total employer contributions 1,500 payable to staff at contract end) ) 6,000 ($40k x 15%) * No. of contract staff opted for employer SVC in lieu of gratuity in 2015/16: 16 (2014/15: 16) 3
The University MPF Scheme – Members Briefing Session Fidelity Retirement BOC-Prudential Easy- Master Trust Scheme Master Trust Choice MPF Scheme (“MTS”) (“FRMT”) (“BOC-Prudential”) Effective Date 1 December 2000 1 November 2010 FIL Investment BOCI-Prudential Asset Investment Manager Management (HK) Management Limited Limited HSBC Institutional Trust BOCI-Prudential Trustee/Administrator Services (Asia) Limited Trustee Limited (“HSBC”) (“BOCI-P”) Investment Funds 19 14 Mgt fee (% p.a. of NAV) (net after rebate) - Money market funds 0.93% 0.80% - Bond funds 1.20% - 1.45% 0.85% - Equity index funds 0.70% 0.90% - Other funds 1.20% - 1.45% 1.00% As at 30 Jun 2016 - No. of PolyU members 4,309 1,309 - PolyU asset size HK$1,599 million HK$100 million (Total master trust asset size) (HK$27.9 billion) (HK$45.6 billion) 4
The University MPF Scheme – Members Briefing Session Highlight of Scheme Switching Guideline: Two scheme switching exercises every year, with effective dates on 1 May and 1 November; Members could switch only once every calendar year; New appointees may join scheme switching exercises only after 3 months of joining the University; and All accrued benefits in the existing MTS should be redeemed and transferred to the new MTS. 5
The University MPF Scheme – Members Briefing Session No. of members who switched schemes: FRMT to BOC-P BOC-P to FRMT 2015/16 4 3 2014/15 6 7 No. of members who transferred out MPF accrued benefits under the Employee Choice Arrangement * : FRMT BOC-P 2015/16 91 ($4.3 million) 26 ($0.5 million) 2014/15 84 ($4.5 million) 24 ($0.9 million) * Commenced on 1 Nov 2012 6
The University MPF Scheme – Members Briefing Session Highlight of Scheme Switching Timeline (effective date = 1 Nov 2016): Responsible Date Activities Party Deadline for members to submit the below forms to FO: T – 18 5 Oct 2016 Members 1. Member’s Election Form for Switching of MPF Scheme working day 2. Membership Enrolment Form Last day for the existing scheme trustee to accept switching- T - 6 BOCI-P / 24 Oct 2016 out members’ instruction to change investment allocation working day HSBC (cut-off, 4pm) under the existing MPF scheme T - 1 BOCI-P / Dealing date: Existing scheme trustee to redeem members’ 31 Oct 2016 working day HSBC benefit balance holdings under the existing MPF scheme T 1 Nov 2016 1st day of membership under the new MPF scheme Last day for the new scheme trustee to accept switching-in T + 7 BOCI-P / 10 Nov 2016 members’ instruction on change of investment allocation for working day HSBC (cut-off, 4pm) transferred benefit balance T + 11 BOCI-P / 16 Nov 2016 Dealing date: New scheme trustee to subscribe for fund units working day HSBC T + 14 Members can view their transfer-in benefit balance in BOC- 21 Nov 2016 working day Prudential / FRMT via internet Note: Scheme switching takes about 11 to 12 working days. Members’ assets will be out of market during this period and without any investment gain or loss. 7
The University MPF Scheme – Members Briefing Session Members who elect to switch between the two MTSs should: a) Read and understand the Guideline on Switching of MPF Scheme and Timeline on Switching of MPF Scheme; b) Refer to the Comparison of scheme features and performance; and c) Return the completed forms below to the Finance Office by the prescribed deadline: i) Member’s Election Form for Switching of MPF Scheme ii) Membership Enrolment Form (for the new MTS) 8
The University MPF Scheme – Members Briefing Session All documents about the scheme switching are available at the FO website as follows: 9
Thank You 10
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