Abolition of Offsetting Arrangement (to be implemented in 2025)
The Legislative Council passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 on 9 June 2022 to abolish the use of the accrued benefits of employers' mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP) (MPF offsetting arrangement). The Government has announced that the abolition of MPF offsetting arrangement will take effect on 1 May 2025.
