If I go bankrupt, is my MPF protected?

Q: After a scheme member is declared bankrupt, can their MPF benefits be seized to repay debts?

A: The Mandatory Provident Fund Schemes Ordinance shields accrued benefits in an MPF account that arise from mandatory contributions — they cannot be tapped under the Bankruptcy Ordinance to repay debts. In other words, a bankrupt member keeps that portion of their MPF for retirement.

There is one exception: if a bankrupt member is paid out MPF benefits before being discharged, the trustee in bankruptcy may claim that money to settle the member’s debts.

Mandatory vs voluntary: very different protection

The Ordinance’s shield covers only benefits from mandatory contributions. Voluntary contributions, and benefits under an MPF-exempted occupational retirement scheme, are not protected: after bankruptcy, whether they can be seized depends on the scheme’s terms — including any forfeiture clauses, employment terms and other company documents. In short, voluntary and ORSO benefits may be claimed for debt repayment.

Once withdrawn, the money is no longer protected

Members may withdraw all or part of their MPF at 65; before 65, they may withdraw early on six statutory grounds:

Once MPF money has been withdrawn, it is no longer covered by the protective provisions and may be claimed to repay debts.

Get the Official Receiver’s consent first

One more point: if a trustee learns from the Official Receiver’s Office that a member is bankrupt, and that member intends to withdraw MPF benefits, the member must first obtain the Official Receiver’s consent. Individual circumstances and trustee arrangements vary, so members should contact their trustee for details.

(Provided by the MPFA)