September 2016 1 The University MPF Scheme Members Briefing - - PowerPoint PPT Presentation

The University MPF Scheme Members Briefing Session

September 2016

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1) Presentation by PolyU (10 mins) April Wong Director of Finance PolyU 2) Presentation by FIL Investment (25 mins) Silvia Kong Client Director FIL Investment Management (Hong Kong) Limited 3) Presentation by BOCI-Prudential (25 mins) Anthony Wong Vice President BOCI-Prudential Asset Management Limited 4) Questions & Answers session (15 mins)

The University MPF Scheme – Members Briefing Session

Programme Rundown:

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The University MPF Scheme – Members Briefing Session

MPF Relevant Income (“RI”)

• Max. level of RI: $30,000 (for employer & employee mandatory contribution (“MC”))
• Min. level of RI: $7,100 (no employee MC below this level)

Examples for staff on contract gratuity (Basic Member) and regular terms (Class A Member): Basic Member Class A Member $ $ Basic salary 40,000 40,000 Part-time payment 5,000 5,000 MPF RI 45,000 45,000 Employee MC 1,500 ($30k x 5%, up to $1,500) 1,500 ($30k x 5%, up to $1,500) Employee voluntary contributions N/A 500 Total employee contributions 1,500 2,000 ($40k x 5%) Employer MC 1,500 ($30k x 5%, up to $1,500) 1,500 ($30k x 5%, up to $1,500) Employer voluntary contributions N/A (Gratuity of $4,500 p.m. will be 4,500 Total employer contributions 1,500 payable to staff at contract end)

) 6,000 ($40k x 15%)

* No. of contract staff opted for employer SVC in lieu of gratuity in 2015/16: 16 (2014/15: 16)

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Contribution calculation

Master Trust Scheme (“MTS”) Fidelity Retirement Master Trust (“FRMT”) BOC-Prudential Easy- Choice MPF Scheme (“BOC-Prudential”) Effective Date 1 December 2000 1 November 2010 Investment Manager FIL Investment Management (HK) Limited BOCI-Prudential Asset Management Limited Trustee/Administrator HSBC Institutional Trust Services (Asia) Limited (“HSBC”) BOCI-Prudential Trustee Limited (“BOCI-P”) Investment Funds 19 14 Mgt fee (% p.a. of NAV)

• Money market funds
• Bond funds
• Equity index funds
• Other funds

0.93% 1.20% - 1.45% 0.70% 1.20% - 1.45% (net after rebate) 0.80% 0.85% 0.90% 1.00% As at 30 Jun 2016

• No. of PolyU members
• PolyU asset size

(Total master trust asset size) 4,309 HK$1,599 million (HK$27.9 billion) 1,309 HK$100 million (HK$45.6 billion)

The University MPF Scheme – Members Briefing Session

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Highlight of Scheme Switching Guideline:  Two scheme switching exercises every year, with effective dates on 1 May and 1 November;  Members could switch only once every calendar year;  New appointees may join scheme switching exercises only after 3 months of joining the University; and  All accrued benefits in the existing MTS should be redeemed and transferred to the new MTS.

The University MPF Scheme – Members Briefing Session

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The University MPF Scheme – Members Briefing Session

 No. of members who switched schemes: FRMT to BOC-P BOC-P to FRMT 2015/16 4 3 2014/15 6 7  No. of members who transferred out MPF accrued benefits under the Employee Choice Arrangement * : FRMT BOC-P 2015/16 91 ($4.3 million) 26 ($0.5 million) 2014/15 84 ($4.5 million) 24 ($0.9 million) * Commenced on 1 Nov 2012

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Highlight of Scheme Switching Timeline (effective date = 1 Nov 2016):

Date Responsible Party Activities T – 18 working day 5 Oct 2016 Members Deadline for members to submit the below forms to FO:

• 1. Member’s Election Form for Switching of MPF Scheme
• 2. Membership Enrolment Form

T - 6 working day 24 Oct 2016

(cut-off, 4pm)

BOCI-P / HSBC Last day for the existing scheme trustee to accept switching-

• ut members’ instruction to change investment allocation

under the existing MPF scheme T - 1 working day 31 Oct 2016 BOCI-P / HSBC Dealing date: Existing scheme trustee to redeem members’ benefit balance holdings under the existing MPF scheme T 1 Nov 2016 1st day of membership under the new MPF scheme T + 7 working day 10 Nov 2016

(cut-off, 4pm)

BOCI-P / HSBC Last day for the new scheme trustee to accept switching-in members’ instruction on change of investment allocation for transferred benefit balance T + 11 working day 16 Nov 2016 BOCI-P / HSBC Dealing date: New scheme trustee to subscribe for fund units T + 14 working day 21 Nov 2016 Members can view their transfer-in benefit balance in BOC- Prudential / FRMT via internet

The University MPF Scheme – Members Briefing Session

Note: Scheme switching takes about 11 to 12 working days. Members’ assets will be out of market during this period and without any investment gain or loss. 7

Members who elect to switch between the two MTSs should: a) Read and understand the Guideline on Switching of MPF Scheme and Timeline on Switching of MPF Scheme; b) Refer to the Comparison

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scheme features and performance; and c) Return the completed forms below to the Finance Office by the prescribed deadline: i) Member’s Election Form for Switching of MPF Scheme ii) Membership Enrolment Form (for the new MTS)

The University MPF Scheme – Members Briefing Session

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All documents about the scheme switching are available at the FO website as follows:

The University MPF Scheme – Members Briefing Session

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Thank You

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