Provident Fund Question

[Anon E. Mus]

For any CX pilots who have recently resigned, how long before you received your CPAPF payment?
Does this payment need to be declared in your tax return & is it taxable?
Thanks.

[hkgcanuck]

Resigned last fall. Received my vested MPF account balance into my HSBC chequeing account two days after my last date of employment. No taxation.

[Flying Clog]

Very good, but how about the CPAPF? MPF is an entirely different kettle of fish.

[RAT Management]

If given a choice take cpapf over the mpf. Mpf you pay fees. For cpapf the company pays the fees. Plus when you leave early for arguments sake, you get the vested amount fully payed into your account to take with you. For the mpf it will remain in the fund in a stagnant state until normal retirement age.

[Sue Ridgepipe]

Originally Posted by RAT Management

For the mpf it will remain in the fund in a stagnant state until normal retirement age.

I'm not sure that's correct - I thought you could get access to the funds in MPF if you sign a declaration to say you are leaving HK permanently with no intention of ever returning for employment or residing as a PR.

[fly1981]

all mpf can be withdrawn by filling In the appropriate forms and making a declaration in front of a commissioner of oaths stating that you do not intend to ever return to live in Hong Kong. That doesn’t prohibit you from returning, however, should you return, this option will not be available again. Ie you will only get it at retirement age the second time.

[illtellyouhowitis]

RAT, not sure i'd take advice of someone that can't spell "PAID".

CPAPF has an interesting outcome if you are dismissed, the MPF doesn't.

[RAT Management]

If your planning on getting dismissed take the MPF. But if you want the full amount paid into the account with the company picking up the fees then take the CPAPF. That way you get your full 5\10%. After all if the company default you to MPF is not cos they are doing you a favour.

[illtellyouhowitis]

Er, thanks RAT, I managed to work that out myself. Also, fees are paid by both employer and employee on current CPAPF as opposed to all by employee on the MPF.

If you trust your employer then good luck, I think i'll take the hit and have the security of my money safe rather than CX sacking you for any number of reasons and screwing you out of a lot of money. Buy hey, each to their own.

[The100thmeridian]

For CPAPF and MMB cash out there are 4 different forms required. The process usually starts 20 days prior to the last day of employment and the fund manager will not be held accountable if the funds would have risen if left until the last day. You will receive the vested amount minus the legally required withheld MMP amount (1.2 x last month's wages x reckonable years of service) within 7 working days after your last day of employment. After that and if the 2 forms consisting of MMB-W and MMB-W(SD2) for MMB withdrawal are submitted properly then the MMB cash-out process will be commenced and will take up to a month. All told the process takes about 2 months to complete and the funds are not taxable income in HK. Of course they may be viewed differently by other tax jurisdictions you may be subject to. The necessary timeline could be a factor if the process is not initiated until after your last working day.

[dhoonk]

Originally Posted by Anon E. Mus

For any CX pilots who have recently resigned, how long before you received your CPAPF payment?
Does this payment need to be declared in your tax return & is it taxable?
Thanks.

Here is what happened in my case.

I was VETA and had my benefits paid into BBS. I left CX a couple years ago and received the payout a few weeks after last day of employment. The payout is not taxable in Hong Kong. I believe the same applies to CPAPF.

[Anon E. Mus]

For CPAPF, is there an option to keep the fund going in the HSBC account and not have to withdraw it all upon resignation/retirement?
For example, if you are unfortunate enough to leave at the bottom of a bear market your fund could potentially be worth far less than leaving at the peak of a bull market.