Early MPF Withdrawals Proposed; Lump-Sum Payout at 65 May Go Phased

Could workers struck by critical illness tap their MPF before 65? In 2011, an MPFA working group wrapped up a major review of the scheme’s first decade and proposed a narrow form of MPF early withdrawal: only workers with critical illnesses or chronic conditions incurring heavy medical bills could draw part of their benefits early — unemployment, home purchases and children’s education would not qualify.

When is MPF early withdrawal allowed?

MPF benefits are normally payable at 65. The 2011 working group proposed limiting MPF early withdrawal to workers with critical illnesses or chronic conditions facing heavy medical costs; the withdrawal ratio was left for further discussion, while the government worried that too many compassionate grounds would erode MPF’s retirement purpose.

The working group was set up in May 2011; its recommendations went to the MPFA board for discussion.