Transcript HKBU - Finance Office

Welcome to the seminar:
MPF Implication on Research
Grant Holders
Helen Leung
Finance Office
15 September 2000
Agenda
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The MPFO
Current retirement benefits v.s. MPFO era
The impact on your budget
Budget clearance procedures
Commonly asked questions
Hot Lines
Questions & Answers
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The MPFO - Introduction
• Will come into effect on 1.12.2000
• It is an employment-related contribution
system
• Covers all employees of age 18 to 65 with a
few exemptions
• Include full-time & part-time employees
working for 60 days or more
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MPFO - Exempted Persons
• Employees who, at 1.12.2000, have attained
64 years of age
• Members of MPF-exempted ORSO schemes
• People from overseas who enter HK for
employment for < 1 year, or who are
covered by overseas retirement schemes
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MPFO - Employee Contribution
• Mandatory = 5% of relevant income
• Starts from 31st day of employment
• If relevant income < $4,000
==> contribution is optional
• If relevant income > $20,000
==> maximum contribution is $1,000
• Any amount > mandatory will be voluntary
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MPFO - Employer contribution
• Mandatory = 5% of relevant income
• Starts from 1st day of employment
• If relevant income > $0
==> contribution is required
• If relevant income > $20,000
==> maximum contribution is $1,000
• Any amount > mandatory will be voluntary
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MPFO - Relevant Income
Relevant Income includes:
• Basic salary
• Cash allowances
• Gratuity
• Overtime pay
Excludes housing benefits
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MPFO - Withdrawal of Benefits
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Attain the age of 65
Retire between age 60 & 65
Death or total disability
Depart from HK permanently (once only)
Small balance [<$5,000] and no mandatory
contribution for past 12 months
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HKBU Current retirement
benefits
• Superannuation benefit => ORSO scheme
• Gratuity benefit => 8.5% - 15% of salary
payable annually or at end of contract
• No superannuation benefit or gratuity for
part-time, short-term or temporary staff
• Salary, superannuation contribution &
gratuity are charged to your staff cost
budget
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The MPFO era - HKBU Policy - 1 of 3
Superannuation Fund member
• continue or join the MPF scheme
Gratuity term staff
• join the ORSO scheme or MPF scheme
• U contribution + gratuity receivable =
original gratuity amount
==>> NO effect on the staff cost budget
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The MPFO era - HKBU Policy - 2 of 3
Staff with no retirement benefit
• join the MPF scheme
• staff & U contributes 5% of relevant income
= legal requirement
• Extra 5% from your staff cost budget to pay
the U mandatory contribution
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The MPFO era - HKBU Policy - 3 of 3
Staff who claim exemption under MPFO
• Staff will declare
• Personnel Office will verify
• staff & U will NOT contribute
==>> NO extra 5% from your staff cost budget
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The Impact on your budget
• Mandatory contribution is required for :
Part-time staff
Short term appointment < 1 year
Research staff
Student helpers
Temporary helpers
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The Impact on your budget
• From 1.12.2000
If you appoint any of the above staff group,
you will have to pay the 5% of relevant
income from your staff cost budget
• Maximum = $1,000 per month
==> Pls add 5% to your estimated staff cost
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The Impact on your budget
- An example - 1 of 2
• A research assistant is appointed for 6
months from 1.1.2001
• Monthly salary = $10,000
• The salary is paid by a research project
• The amount charged to staff cost budget of
the research project =
10,000 + 5% X 10,000 = 10,500 per month
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The Impact on your budget
- An example - 2 of 2
• If NO MPFO
==> Staff cost is $10,000
==> RA will receive $10,000
• With MPFO
==> Staff cost is $10,500
==> RA will receive $9,500
(I.e. 10,000 - 10,000 X 5%)
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The Impact on your budget
• UGC will NOT provide additional funding to
cater for the new legal requirement
• The University does not have any extra
resources to top up the additional
contribution
===>> PLEASE build in your staff cost budget
for the extra contribution
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Budget Clearance Procedures
- 1 of 2
• Prepare staff requisition form (“SRF”) to
Personnel Office (“PERS”)
• If use PR, send the PR directly to FO
• PERS will fax the SRF to FO for budget
clearance
• PSYS/FO will clear Recurrent Fund staff cost
• ATS/FO will clear non recurrent fd staff cost
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Budget Clearance Procedures
- 2 of 2
• A copy of the form will be sent to PERS /user
• FO will add 5% MPF mandatory contribution
to the staff cost commitment
• The committed staff cost will be adjusted
when MPF contribution is confirmed NOT
required
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Commonly Asked Question - 1 of 3
Will an employee from China be exempted
from MPFO ?
He will be exempted if he enters HK with
work permit for the first 12 months
and
the 12 months’ period will be counted from
the 1st day he lands HK.
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Commonly Asked Question - 2 of 3
If an overseas employee extends his
contract beyond 12 months, what happen ?
He will be required to join the MPF scheme,
unless he’s covered by an overseas
scheme;
The U & the staff will contribute from the 1st
day & 31st day of the 13th month
respectively.
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Commonly Asked Question - 3 of 3
When MPF comes in, do we need to provide
Long Service Payment (LSP) ?
The law allows LSP to be offset against the
U contribution to MPF scheme
LSP requires 5.8% provision and MPF is 5%
Need to provide the additional 0.8%
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Hot Lines
Personnel policy
Ms Alice Chu
Ext 7512
Financial issues
Ms Melinda Young Ext 7925
Ms Alice Chan
Ext 5018
MPFO information
http://www.hkbu.hk/~fohome/mpf
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MPF Implication on Research
Grant Holders
Questions and Answers
Thank You