Speaker(s)

• Ms Portia Tang, Director, Human Capital Solutions, InCorp
• Ms Cynthia Chung, Partner and Head of HR and Pensions Practice, Deacons
• Mr Eric Pat, Director, BDO Hong Kong

Description

The abolition of the MPF offset setting arrangement took effect on 1 May 2025 (“Transition Date”). After this date, the accrued benefits from the employer's mandatory MPF contributions (ERMC) can no longer be used to offset the employee's severance and long service payments (SP/LSP) for the years of service following the Transition Date. The accrued benefits from employers' voluntary MPF contributions (ERVC) and gratuities based on employees' years of service may still offset SP/LSP, regardless of whether the service years are before or after the Transition Date.

This legislative change will have a significant impact on corporate employers moving forward. Currently, most employers either do not have any net liabilities or maintain only minimal net liabilities for LSP under HKAS 19, as they have assumed that mandatory MPF contributions would fully cover their LSP liabilities. However, going forward, LSP may no longer be negligible, and they will need to set aside provisions and sufficient funds to settle SP/LSP when terminations occur.

This seminar serves as an essential guide to navigate the complexities and implications of the new legislative change. A panel of three expert speakers from HR & Payroll Management, Employment Law, and Valuation will provide an overview of the legislative change, discuss best practices that organisations should adopt to ensure full compliance, and outline the potential consequences of non-compliance.

Key Topics:

• Understanding the new legislative change: Abolition of the MPF offsetting arrangement
• Pre-transition vs. Post-transition (including LSP/SP calculation examples)
• Valuation of LSP provision under HKAS 19
• Common issues faced by corporate employers
• Preventing legal pitfalls in terminations

Join us for this informative seminar to acquire practical knowledge on how your organisation can be well-prepared, stay compliant, and protect itself against potential liabilities arising from ill-informed decisions.

Remarks on this Online Session:

• This is the online session. If you wish to join in person, please click HERE for the physical session.
• Registration will be closed on 14 July 2025 at 5.00pm.
• Once enrolment in this online session is confirmed by the Institute, requests to change to physical session will not be entertained.
• Online session will be delivered via Zoom facility. The Institute has made every effort to ensure that the quality of the internet connection is sufficient for media streaming. Attendees should ensure that they are in an area of stable internet connection with suitable bandwidth as this can affect user’s experience.

Level: Intermediate

Speakers' bios:
Ms Portia Tang
Ms Cynthia Chung
Mr Eric Pat

Seat guarantee will only be given to HKCGI Fellows and/or Practitioner’s Endorsement (PE) holders if registered 10 clear working days with payment prior to the date of the seminar.