June 2022 - Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022

The Government has passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 (The Amendment Bill) on 9 June 2022. Employers will no longer be able to offset any severance payment (SP) or long service payment (LSP) payable to employee against the accrued benefits of employer mandatory contributions under the Mandatory Provident Fund (MPF) scheme. The abolition of the offsetting arrangement also applies to occupational retirement schemes (ORSO) under the Occupational Retirement Schemes Ordinance.