Employees whose employment commences before the transition date

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  If employees commence employment before the transition date, employers can no longer use the accrued benefits derived from their mandatory MPF contributions (ERMC) to offset the employees' post-transition portion of SP/LSP, but may continue to use the accrued benefits derived from their MPF contributions (irrespective of the contributions made before, on or after the transition date, and irrespective of mandatory or voluntary contributions) to offset pre-transition portion of SP/LSP.

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  The accrued benefits derived from employers' voluntary MPF contributions (ERVC) and gratuities based on employees' years of service can continue to be used to offset pre- and/or post-transition portion of SP/LSP after the abolition of MPF offsetting arrangement.

Example

Employees whose employment commences on or after the transition date

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  If employees commence employment on or after the transition date, employers can no longer use ERMC to offset SP/LSP.

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  ERVC and gratuities based on employees' years of service can continue to be used to offset SP/LSP after the abolition of MPF offsetting arrangement.

Example