Employee

After the abolition of MPF offsetting arrangement, employers can no longer use the accrued benefits derived from their mandatory MPF contributions (ERMC) to offset employees' SP/LSP. This would help preserve the accrued benefits in employees' MPF accounts and enhance retirement protection.

Under special circumstances (e.g. the employee has a substantial pay rise after the transition date, and the employment period preceding the transition date is much longer than that after the transition date), the amount of aggregate benefits (i.e. the total amount of SP/LSP entitlement plus ERMC) received by existing employees after the abolition may be less than that under the existing offsetting regime. Should any such case arise, the Government will make up for the shortfall to ensure employees would not be worse off. The Government will announce the details in due course.