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Bill to protect mandatory contributions in MPF schemes in case of bankruptcy gazetted
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     The Mandatory Provident Fund Schemes (Amendment) Bill 2011 is gazetted today (February 18).  

     A government spokesman said today, "The aim of the Mandatory Provident Fund (MPF) System is to assist the working population to accumulate retirement savings.  Consistent with this policy objective, the legislative proposal seeks to make it expressly clear that if a scheme member is adjudicated bankrupt, the right or entitlement of the scheme member to any accrued benefits derived from mandatory contributions in a registered MPF scheme (MC accrued benefits) would not be made available to his creditors, i.e. the scheme member would retain his MC accrued benefits for retirement living even in case of bankruptcy."

     At present, section 16 of the Mandatory Provident Fund Schemes Ordinance (Cap. 485), which already provides that no part of the MC accrued benefits in respect of a scheme member shall be taken in execution of a judgment debt or be the subject of any charge, pledge, lien, mortgage, trustee, assignment or alienation by or on behalf of the scheme member and any purported disposition to the contrary, is void.  The Bill will introduce suitable amendments to this provision.

     The Legislative Council Panel on Financial Affairs was briefed on the legislative proposal at its meeting on November 29, 2010, and indicated its support.

     The Bill will be introduced into the Legislative Council on March 2.

Ends/Friday, February 18, 2011
Issued at HKT 16:15

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