MPF and ORSO

Key Features
ORSO
MPF


Nature
Voluntary
Compulsory


Contributions:



Employer
Employee
Definitionm of salary




No minimum



No minimumBasic monthly salary




5%



5%cash earnings


Minimum income lever
Nil
$4,000


Maximum level
Nil
$20,000


Vesting
According to plan rules
Full and immediate


Portability
No
Yes


Preservation
No,
benefits encashed on termination
Preserved
until age 65


Investment
Standards
Little
limitation
More
stringent


Forfeiture
usage
Can be used
to offset employer's contribution liability
No


Benefit from employer's account
Taxable if
exceeds IRD vesting scale
Tax free