Loopholes in the MPF permanent-departure declaration: one form, one oath, money out?

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

Nearly 20,000 people a year claimed “permanent departure” to withdraw almost HK$1 billion in MPF. Why was it so easy? Look at the process: the permanent-departure declaration form plus one oath — no supporting documents, money released.

How simple was the application?

Fill in the form, swear it at a Home Affairs office, done. Applicants merely completed the official form, confirming they would “permanently depart Hong Kong to settle overseas in a given year and month” and had “never claimed MPF on the same ground before” — and the balance was theirs. The form demanded no documentary proof of actual departure, nor any pledge to stay away from Hong Kong work for any period.

Why was false swearing so hard to prosecute?

Because taking the money, living briefly on the mainland, then returning left prosecutors with little to prove. Sources blamed the over-simple requirements. Some claimed to be going self-employed on the mainland, leaving no employer to verify with — investigators had nowhere to start.

What reform was proposed?

Documentary proof at the oath. The Labour Party chairman urged the MPFA to set new guidelines requiring claimants to produce immigration papers, overseas job offers or overseas property documents before early release — closing the “just fill in the form” loophole.