Abuse of the MPF permanent-departure declaration: an accused member saw “nothing wrong”

This article is a rewrite of a report from July 2012.

Cases of bogus “permanent departure” claims to unlock MPF early kept surfacing: members falsely claimed to be going self-employed on the mainland, leaving the authorities no employer to verify with; some paid the price years later — an employer who learned of the lie used it as leverage to stop contributing, leaving the member suffering in silence.

How did an accused member defend himself?

“It’s my money — there’s nothing wrong with taking it early.” One member who withdrew four years earlier swore a second false declaration recently and came under MPFA investigation. Far from remorseful, he counter-complained that an MPFA inspector had harassed and intimidated him by phone.

Were the penalties a deterrent?

No — the maximum fine was just HK$6,000. An MPFA non-executive director said convicting false swearers for HK$6,000 was unfair to law-abiding citizens, urging exemplary prosecutions on graver charges for serious cases to strengthen deterrence.

What would close the loophole?

Documentary proof at the oath. The Labour Party chairman argued genuinely departing young workers were emigrating, hired by overseas employers, or had bought homes abroad — and urged the MPFA to demand written proof such as overseas job offers or immigration documents before releasing funds.