Hong Kong Ordinances

MANDATORY PROVIDENT FUND SCHEMES ORDINANCE - SECT 18

Recovery of arrears and contribution surcharges*

(Past version on 01/11/2008).
(Past version on 01/02/2003).
(Past version on 01/12/2000).

(1) If a mandatory contribution that falls within paragraph (a) or

   (aa) of the definition of “mandatory contribution” in section 2(1) is
        not paid on or before the day by which it is required to be paid under
        this Ordinance, it becomes due for payment to the Authority on the
        expiry of that day. (Replaced 18 of 2008 s. 10)

(2) If a mandatory contribution becomes due for payment to the Authority under
subsection (1) or section 7AE, the person who is liable to pay the
contribution is also liable to pay to the Authority as a contribution
surcharge an amount determined by multiplying the arrears by the prescribed
percentage rate. The prescribed percentage rate is a rate prescribed by
the regulations. (Amended 29 of 2002 s. 8; 1 of 2008 s. 60; 18 of 2008 s. 10)

(3) The Authority may, by proceedings brought in a court of competent
jurisdiction, recover as a debt due to the Authority any arrears, together
with any contribution surcharge payable under subsection

(2) in respect of those arrears. (Amended 1 of 2008 s. 60)

(4) In any proceedings brought under subsection (3), a certificate, purporting
to be issued by the Authority, specifying the amount of the arrears, or of any
contribution surcharge payable in respect of those arrears, is, in the absence
of evidence to the contrary, proof of the matters specified in the
certificate. (Amended 1 of 2008 s. 60)

(5) The Authority must pay any arrears or contribution surcharge paid to or
recovered by the Authority—

   (a)  in the case of an employee who is still employed by the employer
        concerned at the time the Authority makes payment—

        (i)    to the approved trustee of the registered scheme nominated by
               the employer for this purpose; or

        (ii)   if the employer has not nominated a registered scheme, to the
               approved trustee of the registered scheme nominated by the
               employee for this purpose; or

        (iii)  if neither the employer nor the employee has nominated a
               registered scheme, to the approved trustee of a
               registered scheme that the Authority considers appropriate; or

   (b)  in the case of an employee who has ceased to be employed by the
        employer concerned at the time the Authority makes payment—

        (i)    to the approved trustee of the registered scheme nominated by
               the employee for this purpose; or

        (ii)   if the employee has not nominated a registered scheme, to the
               approved trustee of a registered scheme that the Authority
               considers appropriate; or

   (c)  in the case of a self-employed person—

        (i)    to the approved trustee of the registered scheme nominated by
               the self-employed person for this purpose; or

        (ii)   if the self-employed person has not nominated a registered 
               scheme, to the approved trustee of a registered scheme that the
               Authority considers appropriate. (Replaced 1 of 2008 s. 60)

(6) On receiving a payment under subsection (5), an approved  trustee must
credit the amount of the payment to the account of the scheme  member for whom
the relevant mandatory contribution should have been remitted in accordance
with this Part.

(6A) For the purposes of this section, the regulations may—

   (a)  prescribe the duties of approved trustees in relation to
        mandatory contributions, arrears and contribution surcharges received
        by them, including the duty to verify the calculation of any of these
        sums and the duty to credit these sums to specified accounts; or

   (b)  prescribe the requirements to be complied with in relation to the
        recovery of arrears and contribution surcharges. (Added 1 of 2008 s.
        60)

(6B) For the avoidance of doubt—

   (a)  a person’s liability to pay a contribution surcharge under
        subsection (2); or

   (b)  the exercise by the Authority of its power to recover any arrears or
        contribution surcharge under subsection (3), is not dependent on the
        compliance by the approved trustee or any other person with any
        regulation made for the purposes of this section. (Added 1 of 2008 s.
        60)

(7) In this section, a reference to a mandatory contribution includes a part
of such a contribution. (Replaced 4 of 1998 s. 2)
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* (Replaced 1 of 2008 s. 60)