Transcript Comparison of Hong Kong, Singapore, Canada, US and Germany

Pension Plans in Hong Kong
and Other countries
ORSO
MPF
Force nature. The employer
must establish
1.
Participation
2.
The
qualification
of
participation
employees
3.
Contribution
properties
Voluntary basis
Completes the probation
period
Defined Contribution, Defined Benefit
Completes on 60th to
employ the time.
Defined Benefit
4.
Employer
Contribution
5.
Employee
Contribution
6.
Employee/The
employer
related income
and contribute
lower limit
ORSO
MPF
5-15%
5%
0-5%
5%
N/A
lower limit is $4,000. Or
the monthly salary <$4,000,
may choose contribute or
not, but the employer must
contribute 5%
7.
Both of
them
related
income and
contribute
upper limit
ORSO
MPF
N/A
upper limit is $20,000, if >
$20,000, both of them must
supply the upper limit 5%,
i.e $1,000
8.
Trustees
9.
Shifts to an Does not have transforms
earlier time when the employer may
receives
withdraw
contribute
the
arrangement
not to have agree
must through MPF Scheme
Authority approvals
After stops being employed
reaches 60 years old, then
may receive
ORSO
10. Rights of
return,
contributin
g which may bring
back
The ownership ratio decides
according to the period of
service: By is different 3 to 10
years.
11. After receives If to leaves job time and
the ORSO the
when retirement receives,
tax affairs
then may be exempted from
arrangement
tax
MPF
At 65 years old, may
draw out the complete
employer and the
employee contribute, as
well as investment growth
repayment
To 65 years old when
receives, also does not need
to pay taxes
12. Tiredly
calculates
the rights
and
interests in
leaving job
time the
arrangement
13. Preserve
Agreement
ORSO
MPF
When the employee
leaves the present
employer, must according
to return is the ratio to
receive contribute
It has 3 choices:
1. Keep the MPF &
open a new
personal a/c
2. You can accumulate
the MPF & take it to
new company
3. Can join other MPF
scheme.
No, usually when leaving job The rights and interests
withdraws
must preserve to 65 years
old
ORSO
14.
The employee
contribute tax
affairs
preferential
benefit
The maximum no-tax value is
No
15. The
May deduct in the partial
employer
profit taxes, but the tax
contribute amount not to be possible to
tax affairs
surpass the employee the new
preferential salary 15% to be limited to
benefit
every year
16. Monitoring
MPF
Hong Kong or overseas
legal regulation
supervising and managing
every year $12,000
May deduct the profit taxes,
the profit tax quota cannot
surpass the employee the
new salary 15% to be
limited to every year
Hong Kong legal
regulation supervising
and managing
Comparison of Hong Kong,
Singapore, Canada, US and
Germany with their retirement
plans
Hong Kong
MPF
Type
Basic
Contribution
DC
Compulsory
Employer:
-Above or equal to
5%of employee’s
relevant income
Employee:
-Salary below
$4 000: voluntary
-Salary above
$4 000: 5%
Singapore
CPF
DC
Compulsory
Employer:
-Below 50: 13%
-age of 51-55 : 9%
-age of 56-60: 6%
-Above 61: 3.5%
Employee:
-Below 50: 20%
-age of 51-55: 18%
-age of 56-60: 12.5%
-age of 61-65: 7.5%
Canada
CPP
DC
Compulsory
Employer:
age of 18-70 :
4.95%
Employee:
age of 18-70 :
4.95%
US
401(k)
Germany
PAYG
DC
DB
Voluntary
Employer:
-Voluntary
Employee:
-Voluntary
Compulsory
Employer:
-9.75%
Employee:
-9.75%
-Above 65: 5%
Withdraw
Age 65
Employee who
participates in this
plan can get 100%
of funds.
Before age 65
Take an oath to stop
working after age 60,
or become disabled,
dies, permanent live
outsides Hong Kong.
When you turn 55...
You can withdraw the
CPF Minimum Sum
in your Retirement
Account.
The remaining CPF
will earns interest and
guarantees a
minimum interest rate
of 2.5% per annum
Age 65
25 percent of the
earnings on which
you paid into the
CPP
From age 60-65
Reduced by 0.5
percent for each
month that you are
under 65.
From age 65-70
Increased by 0.5
percent for each
month that you
are over 65, up to
the age of 70.
Can withdraw as
reaches age 59.5,
dies, becomes
disabled, or
incurs hardship.
Age 60-64:
accepting a 0.3 per
cent reduction in
pension
entitlements for
each month
Age 65:
pension benefits
to 65% of
average wages
per month.
Conclusion