Retirement Plan Generator for Hong Kong

A Retirement Plan helps employees save money for their future after they stop working. In Hong Kong, these plans typically follow the Mandatory Provident Fund (MPF) system, where both employers and employees contribute a portion of monthly wages into regulated investment funds.

Beyond the basic MPF requirements, companies can offer enhanced retirement benefits through Occupational Retirement Schemes (ORSO), giving staff additional savings options. These plans often include matching contributions, investment choices, and tax advantages to help workers build their retirement nest egg while staying compliant with local pension laws.

Start planning your Retirement Plan as soon as you begin working in Hong Kong. The MPF system requires both employers and employees to participate once employment begins, with mandatory contributions starting from the first paycheck. Companies need to set up these plans within the first 60 days of hiring their first employee.

For growing businesses, consider implementing an ORSO scheme when looking to attract and retain talent. These enhanced retirement benefits become especially valuable when competing for skilled professionals or expanding operations. Setting up retirement benefits early helps avoid regulatory penalties and ensures smooth financial planning for both the company and employees.

• Two main types of Retirement Plans exist in Hong Kong: The Mandatory Provident Fund (MPF) is the basic required scheme where employers and employees contribute 5% each of monthly income. Occupational Retirement Schemes (ORSO) offer enhanced benefits beyond MPF requirements, often featuring higher contribution rates and more investment options. MPF plans come in Master Trust or Industry Schemes, while ORSO plans can be defined benefit or defined contribution structures, each with different risk and reward profiles.

• Employers: Must set up and contribute to MPF schemes, select trustees, process contributions, and ensure compliance with pension laws. Large companies often establish additional ORSO schemes.
• Employees: Participate through mandatory contributions, choose investment options, and receive retirement benefits upon reaching eligible age.
• MPF Trustees: Manage retirement funds, ensure regulatory compliance, provide investment options, and handle administrative tasks.
• HR Departments: Oversee plan administration, process enrollments, manage contributions, and communicate benefits to staff.

• Plan Selection: Decide between MPF or ORSO schemes based on company size, budget, and employee needs.
• Trustee Research: Compare MPF trustees' fees, investment options, and service quality ratings.
• Employee Data: Gather staff information including salaries, employment dates, and eligibility status.
• Contribution Structure: Define contribution rates, vesting schedules, and any additional voluntary contribution options.
• Documentation Setup: Use our platform to generate compliant retirement plan documents, ensuring all mandatory elements meet MPF Authority requirements.

• Plan Identification: Full legal name of the scheme, participating employer details, and trustee information.
• Contribution Rules: Clear breakdown of mandatory and voluntary contribution rates, payment schedules, and vesting periods.
• Investment Options: Description of available investment choices and risk levels as required by MPF regulations.
• Benefit Structure: Terms for retirement, early withdrawal, death benefits, and payment methods.
• Administrative Provisions: Rights and obligations of trustees, employers, and members under Hong Kong law.
• Termination Terms: Conditions and procedures for plan termination or transfer of benefits.

A Retirement Plan and an Equity Incentive Plan are both employee benefit schemes, but they serve distinct purposes in Hong Kong's employment landscape. While Retirement Plans focus on long-term savings through MPF or ORSO schemes, Equity Incentive Plans offer employees ownership stakes in the company through shares or options.

• Purpose and Timeline: Retirement Plans provide guaranteed post-employment benefits with regular contributions, while Equity Incentive Plans aim to motivate performance and retention through company ownership.
• Regulatory Framework: Retirement Plans must comply with strict MPF Authority guidelines and contribution requirements. Equity Incentive Plans follow securities laws and corporate governance rules.
• Risk Profile: MPF/ORSO schemes offer regulated investment options with protective measures. Equity plans tie benefits directly to company performance, carrying higher potential rewards but also greater risks.