A proposed second 10% surcharge would apply if employers had not paid all overdue Mandatory Provident Fund contributions and/or the existing surcharge by the 120th day after contributions were due, under a bill gazetted on 13 November.
The bill would add the charge to the existing 5% surcharge, applying it to the total arrears.
The Mandatory Provident Fund Schemes Authority could also send employers written notices requiring them to provide relevant income information about employees. Employers would have at least 14 days to comply, and those who failed to do so would face a fixed penalty.
For trustees who breach requirements, the bill proposes giving the Authority power to issue disciplinary orders, including a fine, public censure or both. A fine could be up to the greater of HK$10 million or three times the profit gained or loss avoided through the breach. Trustees would be barred from passing fines on to the MPF schemes they manage, their constituent funds or scheme members.
The Authority could publish details of enforcement action and place relevant information on a public register. It could also discipline MPF intermediaries for misconduct during MPF-related activities, whether or not those activities are regulated.
The Financial Services and the Treasury Bureau said the proposals would improve the Authority’s efficiency in recovering arrears and help protect workers’ retirement savings. The vast majority of employers pay contributions lawfully and on time and would not be affected.
The bill is scheduled for its first reading in the Legislative Council on 25 November.