What Was the Difference Between ORSO and MPF Schemes?

How Did Contributions Differ?

ORSO schemes were run by employers and could be funded by the employer alone or jointly; MPF required employer contributions by law, with employee contributions tied to income. Both sides’ mandatory contributions were 5% of relevant income; employees earning under $5,000 a month were exempt while employers still paid 5%; each side was capped at $1,000.

Who Chose the Investments?

ORSO investment portfolios were decided by employers; under MPF, employers chose the trustee and scheme while employees picked the funds within it.

How Did Vesting Differ?

All MPF mandatory contributions vested in employees immediately, withdrawable at 65 or under statutory conditions. ORSO benefits followed each company’s vesting scale; those joining ORSO after MPF began had to calculate “minimum MPF benefits” on leaving and transfer them to an MPF account.
Now that you know the difference, compare MPF funds on fund choice and fees to exercise your right to pick funds.