There is no need for the Government to provide an option to Civil Service Provident Fund Scheme members similar to the five-year extension period available to Hospital Authority Provident Fund Scheme members.

Secretary for the Civil Service Denise Yue told legislators today, according to the governing rules of the master trust schemes, civil service fund scheme members, when becoming eligible to claim accrued benefits upon retirement or termination of service, can choose to become a preserved account-holder of the master trust scheme and retain accrued benefits from it. Their investment return will be realised only when they withdraw their benefits at a time they choose.

She said the Hospital Authority Provident Fund Scheme is a defined contribution scheme registered under the Occupational Retirement Schemes Ordinance. It operates according to the Trust Deed & Rules of the Scheme and provides benefits to Hospital Authority employees.

The authority scheme members are allowed to remain in it for up to five years from the date of cessation of employment with the authority, if they wish to redeem their benefits any time within the five-year extension period.

She said the civil service schemes are operated under the Mandatory Provident Fund Ordinance which is different from the Occupational Retirement Schemes Ordinance.

Ms Yue said the performance of the six broad types of constituent fund of the three master trust schemes is generally in line with the performance trend of the same type of MPF funds. The performance, calculated on the basis of net asset value over the past 12 months ending December 31, ranged from 4% (Guaranteed Fund) to -52% (Equity Fund).