MPF withdrawal permanent departure: 12 convicted over false declarations

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

On 7 May 2012, 12 MPF scheme members were convicted at Kwun Tong Magistrates’ Courts over false declarations on their permanent-departure claim documents. In 2011 they had each applied to their trustees for early withdrawal of MPF benefits on the grounds of leaving Hong Kong permanently, while falsely declaring they had never withdrawn accrued benefits on those grounds before. Each was fined HK$6,000. On the same day, four employers were convicted of MPF offences and fined a total of HK$69,000.

What are the rules on MPF withdrawal on permanent departure?

MPF withdrawal on permanent departure is one of the statutory grounds for early withdrawal of accrued benefits before age 65. Applicants must file documents with their trustee declaring that they are departing Hong Kong permanently and have never previously withdrawn benefits on those grounds; making a false or misleading statement is a criminal offence — in May 2012, 12 members were convicted at Kwun Tong Magistrates’ Courts for doing exactly that. The MPFA investigates suspicious cases.

Claiming early: three steps to get it right

1. Confirm you meet a statutory ground — permanent departure is one; others include early retirement, total incapacity, terminal illness and small balance.
2. File the claim documents with your trustee, including the statutory declaration that you have never withdrawn on permanent-departure grounds before.
3. Never falsify: the MPFA cross-checks records, and a conviction means a criminal record plus a fine.

Employer MPF default penalties: four cases, HK$69,000 in fines

Failing to enrol employees or to make contributions on time breaches the Mandatory Provident Fund Schemes Ordinance and can lead to prosecution. Workers who spot missing contributions should report them to the MPFA.