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With effect from February 1, 2003, the minimum level of relevant income for Mandatory Provident Fund contributions will be increased from $4,000 to $5,000 per month.

The effective date is announced in a Commencement Notice in respect of the uncommenced provisions in the Mandatory Provident Fund Schemes (Amendment) (No.2) Ordinance 2002 published in the gazette today (November 22).

"The Amendment Ordinance, which was passed by the Legislative Council on July 12, 2002, provides for the setting up of a mechanism to review the minimum and maximum levels of relevant income for the purpose of making MPF contributions; adjustment of the minimum level of income from $4,000 to $5,000 per month; enhancing the efficiency and effectiveness of the operation of the MPF System; and stepping up protection for MPF scheme members," a Government spokesman said.

"Some of the provisions, in particular those on enhancing members' protection, were brought into effect immediately on the gazettal of the Amendment Ordinance on July 19, 2002.

A transitional period is provided for the remaining provisions to allow employers and service providers to adjust their administrative systems accordingly. Such provisions included the adjustment of the minimum relevant income level," he added.

In consultation with MPFA, the Secretary for Financial Services and the Treasury has appointed 1 February 2003 as the commencement date for these provisions.

MPFA will launch a publicity campaign to publicize the changes. Members of the public may contact their MPF trustees to better understand the impact of the new arrangements. They may also call the MPFA's hotline at 2918 0102 or visit its website at www.mpfahk.org.

End/Friday, November 22, 2002

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