Motorola Hong Kong Provident Fund Member Election Form
Full Name
English
HKID No.
Chinese
CID
Contact No.
I have received the provident fund handbook containing
1.
2.
3.
4.
5.
Notice To Members
Scheme Particulars of ORSO Scheme and MPF scheme
Investment Funds
Question & Answer
Glossary
I have studied the information in this handbook and understand that I am being given the option
to choose either the ORSO Scheme or the MPF Scheme.
.
My choice is indicated below (with a “”). I understand that I cannot change this decision once it
is made, and that my decision is required by no later than the first 30 days of employment.
I choose to join the ORSO Scheme, Motorola Hong Kong Provident Fund. I will
not join the Fidelity Retirement Master Trust.
I choose to join the Fidelity Retirement Master Trust. I will not join Motorola
Hong Kong Provident Fund.
Member’s Signature
Date
Signature of Witness
Date
Return Address:
Motorola Asia Pacific Limited
Human Resources Office
18/F, Two Harbourfront
22 Tak Fung Street, Hunghom
Kowloon, Hong Kong
Fax: 852-2966 3906
Hong Kong Provident Fund Handbook
P 1 of 11
January 2011
I.
Notice to Members
This handbook summarizes the retirement benefits that Motorola Hong Kong provides for their
employees. Effective December 1, 2000, commencement of Mandatory Provident Fund in Hong
Kong, Motorola is offering two retirement schemes. They are:
Motorola Hong Kong Provident Fund, (“Motorola ORSO Scheme”), a provident fund scheme
registered under Occupational Retirement Scheme Ordinance. This scheme has obtained the
approval of exemption granted by MPFA according to Mandatory Provident Fund Scheme
(Exemption) Regulation.
Mandatory Provident Fund, (“MPF Scheme”), the mandatory retirement scheme set up
according to Mandatory Provident Fund Ordinance. Motorola has appointed FIL Investment
Management (Hong Kong) Ltd as service provider to render related service. The chosen MPF
Scheme is named as “Fidelity Retirement Master Trust”.
Motorola Hong Kong offers free choice for their permanent employees to select either one of the
above schemes. Each new member has a once only choice to elect to join the Motorola ORSO
Scheme, or to become a member of the MPF Scheme. If the member does not exercise this
choice, the member will be deemed to have chosen to join the MPF Scheme.
In this handbook, we will detail information of the following topics and hope we can assist you to
make a choice best fit for you.
Section II - The particular features under Motorola ORSO scheme and MPF Scheme.
Section III – As your retirement contribution will be put into investment funds to earn returns, this
section provides you an overview of the investment funds available, risk level involved and how
you should consider your investment portfolio. Unitization, the way you will invest into the
investment funds, will also be covered with explanatory examples.
Full details of the Scheme are contained in the Trust Deed and Rules which form the legal basis
of the Scheme. If you have any questions regarding this Handbook, please contact the Human
Resources.
Hong Kong Provident Fund Handbook
P 2 of 11
January 2011
II.
Scheme Particulars of Motorola ORSO Scheme and MPF Scheme
Particulars
MPF Scheme
ORSO Scheme
1. Governing Rule
Hong Kong
Hong Kong
2. Contribution Rate
 By Member
5%
(subject to contribution ceiling, and
nil if monthly income is below
minimum level of relevant income,
i.e. HK$5,000 as of February
2003)
5%

By Employer
5%
(subject to contribution ceiling)
Completed years
Scheme Services
% of
Basic Salary
less than 5 years
5%
5 years but less
than 10 years
6%
10 years but less
than 15years
8.5%
15 years or more
11%
3. Contribution Ceiling
5% on relevant income or
HK$1,000
per
month
as
contribution from each party,
whichever is lower
No ceiling
4. Employee Voluntary
Contribution
Yes (% of income or flat amount)
No
5. Income Definition
(Member and
Employer)
Relevant income including wages,
salary,
leave
pay,
fee,
commission,
bonus,
gratuity,
perquisite or allowance, expressed
in monetary terms
Base Salary (Core
Reimbursement)
6. Benefit upon Death,
Permanent Disability
or Retirement at Age
65
Accrued Benefit can be withdrawn
from the Scheme
Full benefit shall be withdrawn from the
Scheme
Hong Kong Provident Fund Handbook
P 3 of 11
Pay
January 2011
+
Housing
Particulars
7. Benefit upon Early
Retirement
MPF Scheme
ORSO Scheme
Eligibility: -
Eligibility: -

Age 60 and

Age 55 and

Declare not to be employed

Year of service 5 years or above with
Accrued Benefit can be withdrawn
from the Scheme
 Management Approval
Full benefit shall be withdrawn from the
Scheme. (For employees who join the
scheme on or after December 1, 2000,
benefit withdrawn will be subject to
Minimum MPF benefits Preservation)
8. Benefit
upon
dismissal
by
Motorola for Fraud,
dishonesty,
gross
misconduct,
etc.
which
Motorola
entitle to cease the
Scheme membership
of the employee
Accrued Benefit will be preserved
in the MPF scheme (or another
MPF Scheme) upon leaving
employment
Company Contribution: Forfeited
Employee Contribution: 100% vested
9. Benefit upon leaving
employment
Accrued Benefit will be preserved
in the MPF scheme (or another
MPF Scheme) upon leaving
employment
Benefit shall be withdrawn from the
scheme according to Vesting Scale.
(For employees who join the scheme on or
after December 1, 2000, benefit withdrawn
will be subject to Minimum MPF benefits
Preservation)
10. Vesting Scale
Mandatory contribution is 100%
vested
Benefit can be withdrawn according to the
following vesting scale
Completed years
Employer
of Scheme Service
Account
less than 2 yrs
0%
2
15%
3
30%
4
45%
5
60%
6
75%
7
80%
8
85%
9
90%
10 or more
100%
Employee contribution is 100% vested
11. Investment Choice
Member can select to invest in the
following funds of Fidelity MPF
Scheme:
1. Growth Fund
2. Balanced Fund
3. Stable Growth Fund
Hong Kong Provident Fund Handbook
P 4 of 11
Member can select to invest in the
following funds:
1. Schroders HKD Bank Deposit Fund
2. Fidelity Capital Stable Fund
3. Fidelity Stable Growth Fund
January 2011
Particulars
MPF Scheme
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Capital Stable Fund
Global Equity Fund
Asia Pacific Equity Fund
Hong Kong Equity Fund
Hong Kong Bond Fund
World Bond Fund
MPF Conservative Fund
Fidelity SaveEasy 2020 Fund
Fidelity SaveEasy 2025 Fund
Fidelity SaveEasy 2030 Fund
Fidelity SaveEasy 2035 Fund
Fidelity SaveEasy 2040 Fund
12. Person
to
bear
investment risk
Employee
13. Investment
Manager
FIL
Investment
(Hong Kong) Ltd
Fund
ORSO Scheme
4.
5.
6.
7.
Fidelity Balanced Fund
Schroders Balanced Fund
Fidelity Growth Fund
Schroders SISF Fund
Employee
Management
1. Schroder Investment Management
(Hong Kong) Ltd
2. FIL Investment Management (Hong
Kong) Ltd.
14. Trustee
HSBC Institutional Trust Services
(Asia) Ltd.
HSBC Institutional Trust Services (Asia)
Ltd
15. Annual Tax Benefit
on
Employee
Contribution
Employee mandatory contribution
with maximum HK$12,000
Least of:
1. Actual Motorola ORSO Scheme
contribution
2. Amount of the mandatory contribution
that the employee would have been
required to pay if he had participated
MPF
3. HK$12,000
Hong Kong Provident Fund Handbook
P 5 of 11
January 2011
Scheme’s
Administration
Cost
Motorola ORSO Scheme
MPF Scheme
Fees
Schedule
Employer
bears
Fee
schedule
Employer
bears
Employees
bear
X
Employees
bear

MPF
Compensation
Fund Levy
0.03%
of
scheme asset
NIL
--
--
MPFA Levy
no need to
pay currently
(if any, will be
paid out of the
scheme
assets)
X

NIL
--
--
Annual
Registration Fee
NIL
--
--
$2,400

X
Annual
Fee
NIL
--
--
Per auditor’s
quotation
X

(absorbed by
the
scheme
assets)
X

(absorbed
by
the
investment
fund)

(absorbed
by
the
investment
fund)
0.1% - 1%
p.a.
X

(absorbed by
the investment
fund)
0.25%
0.3% p.a.
X

(absorbed by
the scheme
assets)
Audit
Investment
Mangement Fee
Trustee/
Administration
Fee
1.7% - 1.85%
p.a.
Hong Kong Provident Fund Handbook
X
P 6 of 11
-
January 2011
III.
Investment Funds
Under the two retirement schemes, there are two sets of investment funds ranging from high,
medium to low risks. You should understand your investment objectives and strategies before
making any investment decision.
How to choose your investment portfolios
1. Analyze your needs and Define your Goals
Different employees will have their different needs and acceptance level of risks. You should
understand your own personal situation and investment horizon. Most of the investment
should be considered for medium to long-term investment, three to five years. The longer the
investment time frame, the less you should be concerned about short-term fluctuations in
value.
2. Understand the Risk level of Investment Funds
Each investment fund available in the ORSO/MPF schemes has their own asset allocation and
risk level. You should read all the related information so as to understand the investment you
have taken, as well as the level of risk you bear. You can contact the investment advisors of
our investment mangers:


Schorder Investment Management (Hong Kong) Ltd
FIL Investment Management (Hong Kong) Ltd
2843 7778
2629 2666
Investment Fund Option
ORSO Scheme
We have set some investment guidelines in the scheme in order to safeguard your benefits from
high-risk investment vehicles. Guidelines are:

Employer Contribution:
Schroders SISF and Fidelity Growth Fund are not available for election

Employee Contribution:
The total investment of Schroders SISF and Fidelity Growth Fund should not exceed 50%.
MPF Scheme
In MPF Scheme, members are free to elect the combination of investment funds. There is no
limitation of investment in any of the investment funds available.
Hong Kong Provident Fund Handbook
P 7 of 11
January 2011
Asset Allocation of Investment Funds
Investment Funds Under Motorola ORSO Scheme
Name of Fund
Schroders
SISF Fund
Asset Allocation
Highly invested in
Pacific equities
Fidelity Growth
Fund
90% Global Equities
7% Global Bonds
3% Cash
Fidelity
Balanced Fund
70% Global Equities
25% Global Bonds
5% Cash
Schroders
Balanced Fund
60% - 80% Global
Equities
15 – 35% Global
Bonds
0% - 10% Cash
Fidelity Stable
Growth Fund
50% Global Equities
45% Global Bonds
5% Cash
Investment Strategy

For investors who can
accept greater investment
risk
and
volatility
in
exchange for higher long
term returns

A fully invested equity fund

For investors who can
accept greater investment
risk in exchange for higher
long term returns

Growth oriented, invests
primarily in global equities
with a bias towards Hong
Kong

For investors who can
accept
medium
term
volatility to achieve higher
returns

Invests primarily into a
globally diversified equity
portfolio
with
a
bias
towards Hong Kong

Asset mix is in line with
traditional
Hong
Kong
retirement scheme

More flexibility in asset
allocation
in
different
markets and vehicles

Able to hedge currency
exposure of foreign assets
Who Might Want to invest

If you are looking to
maximise
long
term
returns, whilst accepting a
higher level of risk over
shorter time period

For investors who can
accept
medium
term
volatility
Invests in a global portfolio
of equities, bonds and cash
with a slight bias towards
Hong Kong
Aims
to
have
lower
weighting in equities than
the Balanced Fund
For investors who require a
lower level of volatility
Invests primarily in global
bonds and cash with a
controlled equity exposure.

For investors who require a
very
conservative
investment vehicle



Fidelity Capital
Stable Fund
Schroders
HKD Deposit
Fund
30% Global Equities
60% Global Bonds
10% Cash

100% Short-term HK
Dollar Deposit



If you are looking to
maximise
long
term
returns, whilst accepting a
higher level of risk over
shorter time period

If you are looking to
diversify in the world’s
stock and bond markets in
one investment and are
willing to ride out stock
market ups and downs to
get long term returns.

If you are looking to
diversify in the world’s
stock and bond markets in
one investment and are
willing to ride out stock
market ups and downs to
get long term returns.
If you are looking to
diversify your investments
across global stock, bonds
and cash market in one
investment and wish to
provide
more
stable
returns when compared
with the Growth and
Balanced Fund.

If you are looking to
achieve stable returns
combining both income
and capital gains whilst
maintaining a relatively
low level of investment
risk.
If you are looking to
preserve the value of your
investments with stable
returns and a minimum
capital risk.
Investment Funds under MPF Scheme
Details of each fund can be referred to the product flyer.
Hong Kong Provident Fund Handbook
P 8 of 11
January 2011
Unitization of Investment Funds
Each fund is divided into units and each member will hold a member of units in his accounts.
Each unit will have a unit price at month end, for subscription and redemption of the fund.
Example of Unitization Calculation
Sep 30, 2010
Oct 31, 2010
Nov 30, 2010
Dec 31, 2010
Balance c/f
Unit Price
Contribution
Unit Price
Contribution
Unit Price
Contribution
Unit Price
Market Value at Dec 31, 2010
HK$
100,000.00
1.000.00
1,000.00
1.05
1,000.00
1.03
1,000.00
1.07
=
No. of Unit Purchased
100,000.000
=
952.381
=
970.874
=
934.579
Total Units
102,857.834
= 102,857.834 x HK$1.07
= 110,0557.88
How can You Know the Performance of the Fund
The performance and unit price of the investment funds are posted regularly on line. Member
communications are organized periodically, in which representatives from Trustee and
Investment Managers will present updates of the scheme and investment funds.
Member Benefits Statement
Two benefit statements will be provided annually for ORSO members whereas one annual benefit
statement to MPF members. On each statement, your contributions and company contributions,
benefits entitlements and market value of the benefits will be detailed for your information.
Hong Kong Provident Fund Handbook
P 9 of 11
January 2011
Question & Answer
Q1: How would I receive retirement benefits when I retired at age 65, lump sum or monthly
payment?
A1. Under both MPF and ORSO Scheme, the accrued benefits will be paid in lump sum.
Q2. When I leave Motorola, how will my preserved MPF benefits be handled?
A2. A member's benefit can be transferred across from one MPF scheme to another when he
changes employment, i.e the accrued benefit is portable. If he is leaving a master trust
scheme, he will generally be able to
1. leave the benefit with the existing master trust scheme
2. transfer the benefit to a new employer’s MPF scheme
3. transfer the benefit to any master trust scheme which he is entitled to join
Q3. Is it possible for me to withdraw the preserved MPF benefit before I reach age 65?
A3: Benefits may only be paid from an MPF scheme when a member retires at the age of 65.
There are other circumstances under which benefits can be paid:
1. early retirement (if a member is at least 60 and certifies that he is no longer employed)
2. death
3. total incapacity
4. leaving Hong Kong permanently (this can only be used once )
5. if the accrued benefit amount is less than HK$5,000 and no contributions have been made
during the last 12 months
Q4. When I withdraw my retirement benefit from the scheme (MPF or ORSO), is the benefit
subject to salaries tax in Hong Kong?
A4. Both schemes have applied exemption from Hong Kong Inland Revenue Bureau on salaries
tax.
Q5. What is MPF Compensation Fund?
A5. The Compensation Fund has been set up by the Mandatory Provident Fund Authority to
compensate members participating in the MPF scheme for their losses of accrued benefits
that are attributable to misfeasance or illegal conduct committed by the registered trustee or
by other persons concerned with the administration of those schemes. The MPF Authority
will either administer the fund or appoint another administrator.
The costs to run this compensation fund will be borne by members. An amount of 0.03% of
the funds under management will be deducted by the trustee and paid to the Authority. The
Financial Secretary has provided a grant to assist with the operation of the Compensation
Fund.
Hong Kong Provident Fund Handbook
P 10 of 11
January 2011
Glossary
Scheme Service
Preservation –
The number of years of continuous and fulltime employment with Motorola. For reemployment, your past service with Motorola
before re-employment
will also
be
recognized.
Under MPF, the benefits which a member
accrues can only be paid to him when he
reaches retirement age of 65 or under
certain specified circumstances. These
benefits are therefore preserved until that
date.
Accrued Benefit –
Vested Benefit –
In relation to a Member, his beneficial
interest under the Scheme derived from the
member contributions and his employer
contributions together with any investment
return (profit or loss) on the contributions.
Minimum MPF Benefits –
It means the lesser of :
A.
the Member’s benefits accrued under
the Scheme during the period since the
implementation of MPF or joining the
Scheme, whichever is the later; and
B.
1.2 times Average relevant income
during the final 12 months of
employment (up to HK $20,000) times
Number of service years since the
implementation of MPF or joining the
Scheme, whichever is the later.
Hong Kong Provident Fund Handbook
The benefit received by a member from a
scheme may be subject to a vesting scale,
which will apply to the benefit due from his
employer's contributions (but a vesting scale
can only apply to Motorola ORSO Scheme
and where applicable MPF voluntary
contributions; MPF mandatory contributions
are always fully vested). For example, if an
employee has been in service for 3 years
and terminates service, and the Motorola
ORSO scheme provides for 30% vesting
after 3 years of service, the employee will
receive 30% of the benefit accumulated from
the employer's contributions, and all of the
benefit
accumulated
from
his
own
contributions.
For employees who join the scheme on or
after December 1, 2000, benefit withdrawn
will be subject to Minimum MPF benefits
Preservation.
P 11 of 11
January 2011