Calls to Let Terminally Ill Members Withdraw MPF Early

Rewritten from reporting published in April 2012.

MPF rules require members to reach 65 before withdrawing — but what about a worker diagnosed with a terminal illness? A trade-union legislator, together with a financial-planning practitioners’ union, met the MPFA to propose rule changes letting such members access their own retirement savings early.

MPF Early Withdrawal: When Is It Currently Allowed?

Under the existing rules, employees must reach 65 to withdraw accrued benefits; early withdrawal is limited to three grounds: certified total incapacity, permanent departure from Hong Kong, or early retirement at age 60.

What Was Proposed for Terminally Ill Members?

The proposal would let members certified as suffering from a terminal illness, such as cancer, withdraw their MPF contributions early, with no cap on the amount — provided two doctors certify the medical history. After the meeting, the legislator quoted the MPFA as agreeing that such withdrawals should lean towards leniency, while noting consultation was still under way and a bill was expected to reach LegCo in the first year of its next term once all views were collected.

What Was Proposed on Withdrawal Methods at Retirement?

The delegation also proposed letting members choose between lump-sum and instalment withdrawals at retirement, with trustees first analysing the impact of withdrawal on their retirement life so members could decide rationally. He further urged the government to review the MPF system comprehensively, particularly its role in universal retirement protection and medical protection.