FAQ - Annual Benefit Statement

A1: How much do I get if I leave employment?

If you resign, your vested benefit is calculated up to the date you leave your employment and according to the unit prices of the funds at the time the payments or transfer of benefits are processed. If you have Employer Voluntary Contribution or Employer ORSO Transfer, the amount you are entitled to will depend on the reason for the termination reported by your employer and according to the vesting scale set by your employer.

You can refer to 'Closing vested benefit' of the 'Accrued Benefit Summary' section for details of your accrued benefits entitlement as at 30 June 2011.

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A2: What can I do about my accrued benefits when I leave my current employment?

You can choose one of the options below. Your options include:

• Retaining your accrued benefits in a preserved account in the existing HSBC MPF scheme to enjoy special rate of Management Fees. For more details, please click here.
• Transferring them to a preserved account in any MPF scheme of your choice
• Transferring them to your new account under your new employer's MPF scheme
• Transferring them to your existing account in an Industry Scheme (if any)

As you are accumulating your funds for retirement purpose, it is important that you consider the long term financial strength and security of the MPF service providers when making your decision.

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A3: What is the difference between 'Closing balance' and 'Adjusted closing balance' in 'Accrued Benefit Summary'? (applicable to SuperTrust and SuperTrust Plus only)

The 'Closing balance' is the dollar value of your MPF accounts, calculated at unit price, as at 30 June 2011.

The 'Adjusted closing balance' takes the higher amount of the market value or the guaranteed balance of the Guaranteed Fund. If you have invested in the Guaranteed Fund, you are entitled to the higher of the market value or the guaranteed balance, when any one of the guaranteed conditions is met (Please refer to the 'Principal Brochure' for details).

Other than the Guaranteed Fund, the 'Adjusted closing balance' is equal to the 'Closing balance'.

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A4: What do 'Closing vested benefit' and 'Vesting percentage' represent?

'Closing vested benefit' represents the dollar value of your MPF account balances vested to you according to the governing rules of the scheme as at 30 June 2011 (assuming that you leave employment under normal conditions). 'Vesting percentage' represents the percentage of benefits you are entitled to as at 30 June 2011 in accordance with relevant scheme rules and MPF regulations.

For SuperTrust and SuperTrust Plus

'Closing vested benefit' = 'Adjusted closing balance*' x 'Vesting percentage'

* Adjusted closing balance takes the higher amount of the market value or guaranteed balance of the Guaranteed Fund. For other funds, the adjusted closing balance will be equal to the closing balance.

For SimpleChoice and ValueChoice

'Closing vested benefit' = 'Closing balance' x 'Vesting percentage'

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A5: What is the amount of ORSO accrued benefits I am entitled to as at 30 June 2011?

You can refer to the 'ORSO transfer' columns of the 'Accrued Benefit Summary' section for details, where your entitlement is shown as 'Closing vested benefit', assuming you leave employment under normal conditions.

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A1: If I have reached the age of 65 but have not withdrawn my MPF accrued benefits, will an annual benefit statement be delivered to me?

Yes. We will deliver the statement to you as long as you remain as our scheme member as at 30 June 2011. There is a section on the last page of the statement to remind you to choose whether to retain your MPF accrued benefits in the scheme or withdraw them.

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A2: Do I need to take any action on the enclosed INAT form?

Since you have reached/will shortly attain the age of 65, this form is for you to inform us whether you would like to withdraw your MPF accrued benefits or retain them in the scheme. According to the MPF legislation, if we do not receive your instruction, your accrued benefits would be retained within the scheme. By informing us your selection, please complete and return the enclosed INAT form to us. If you choose to claim your accrued benefits, please complete and return INAT form and the claim form 'INPW' with a copy of your HKID card to us.

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A1: Does the annual benefit statement show the monthly contribution records?

Yes. You can refer to the 'Contribution Summary' section which summarises contributions made to your MPF accounts within the scheme financial year. Only transaction(s) completely processed on or before 30 June 2011 is included in the statement. You can also view your contribution records for the past 18 months through our Personal Internet Banking.

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A2: Does the annual benefit statement show 'Personal Contribution' record?

Yes. All Personal Contribution records are shown in the 'Personal Contribution' column under 'Accrued Benefit Summary' and 'Contribution Summary' section.

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A3: Which part of the statement should I refer to if I would like to know the total contributions made by my employer and myself in the scheme financial year?

You may refer to the 'Total Contribution Invested (before fees)' field under 'Summary of Account Movements', 'Fund Balance Summary' or 'Accrued Benefit Summary' section for the total contributions made for your HSBC MPF accounts. You may also refer to the 'Contribution Summary' section for details.

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A4: Which part of the statement should I refer to if I would like to know the total contributions made by my employer and myself since I joined the scheme?

You may refer to the 'Accrued Benefit Summary' section for details. The total contributions made by your employer and yourself since you joined the scheme are shown as 'Total contribution/Total transferred-in' in the 'Employer' and 'Member' columns respectively.

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A5: My employer has transferred the MPF scheme from an HSBC MPF SuperTrust to an HSBC MPF SuperTrust Plus during 1 Jul 2010 to 30 Jun 2011, why is my 'Opening balance' dated 1 Jul 2010 zero? Why does the amount of 'Total contribution/Total transferred-in' in the 'Accrued Benefit Summary' not match with the total contributions made by my employer and myself since I joined the company?

Due to the account in SuperTrust Plus was set up on or after 1 July 2010, the 'Opening balance' would be zero. The 'Total contribution/Total transferred-in' shows the summation of total contributions made to and the accrued benefits transferred to the scheme in SuperTrust Plus. The accrued benefit transferred to SuperTrust Plus is calculated according to the unit price of the investment fund(s) at the date of scheme transfer.

Example:
The total contributions made in SuperTrust scheme is HKD7,000.00 and 560.000 units of Balanced Fund have been bought. Unit price of Balanced Fund at date of transfer is HKD13.00. So, accrued benefit transferred to SuperTrust Plus is HKD7,280.00 (i.e. 560.000 units x HKD13.00).

The total contributions made in SuperTrust Plus scheme is HKD8,000.00. 'Total contribution/Total transferred-in' shown in the 'Accrued Benefit Summary' of SuperTrust Plus would be HKD15,280.00 (i.e. HKD7,280.00 + HKD8,000.00).

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A6: Does the annual benefit statement of 30 June 2011 include any outstanding contributions received after 30 June 2011?

No. Only contributions received and completely processed on or before 30 June 2011 are included in the statement. For information on your latest account balance, you can logon our Personal Internet Banking, call our HSBC MPF Hotline on (852) 2288 6729 or use our ATM service.

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A7: In my statement, there are unpaid contributions under 'Contribution still outstanding' or 'Surcharge still outstanding'. Will HSBC report this matter to the Mandatory Provident Fund Schemes Authority (MPFA)?

Reporting of default or outstanding contribution by us to the MPFA shall be made according to the current legislative requirement. For details, please visit the MPFA's website.

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A1: If the contributions are paid more frequently than monthly, does the annual benefit statement show all contribution records?

If the contributions are paid more frequently than monthly, the end date of the last contribution period and the total contributions invested for the contribution periods in the relevant calendar month would be shown.

Example:
For the month of May, there are totally 4 weekly contribution periods (i.e. 2011/05/04 - 2011/05/10, 2011/05/11 - 2011/05/17, 2011/05/18 - 2011/05/24, 2011/05/25 - 2011/05/31).

Information shown in the annual benefit statement of 30 June 2011:

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A1: What is consolidated mailing?

Scheme members with more than one HSBC MPF account will receive all their annual benefit statements in one envelope, mailed to the most recently updated address in the HSBC MPF records.

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A2: What is 'Total Asset Allocation'?

The total asset allocation shows the aggregated fund balance of your MPF accounts stated in the enclosed annual benefit statements as at 30 June 2011.

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A3: What is 'MPF Accrued Benefits Projection at Different Age'?

The 'MPF Accrued Benefits Projection at Different Age' shows the projected benefits of your MPF accounts at different age intervals until the age of 65. The projection is prepared based on a set of assumptions. Please refer to the information beside the bar chart in the statement for details of the assumptions.

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A4: What is 'Projected average monthly amount'?

Projected average monthly amount refers to the expected monthly installment available to you, which lasts from the ages of 65 to 80 if you are male, and 65 to 85 if you are female, based on the total projected MPF benefit at age 65.

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A5: What does the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' represent?

The 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' compares your projected relevant income at age 65 with the projected average monthly amount from age 65 to 80 (for male) or 85 (for female). Besides, it also shows your additional projected average monthly amount from age 65 to 80 (for male) or 85 (for female) if you start making a certain amount of additional monthly personal contribution on 1 July 2011. The 'Comparison on projected relevant income at age 65 and average monthly amount after age 65' is prepared based on a set of assumptions. Please refer to the information beside the bar chart in the statement for details.

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A6: What does the 'Percentage of your projected relevant income at age 65' represent?

This percentage is calculated by dividing your 'Projected average monthly amount' for your retirement by the 'Projected relevant income at age 65'. It estimates the portion of the 'Projected relevant income as at age 65' which could be maintained after your retirement at age 65.

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A7: What is the difference between the 'MPF Accrued Benefits Projection at Different Age' and 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65'?

The 'MPF Accrued Benefits Projection at Different Age' reflects a projected lump sum of MPF accrued benefits until your retirement at age 65, while the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' shows a projected average monthly amount which will be available after your retirement until 80 (for male) or 85 (for female). The 'MPF Accrued Benefits Projection at Different Age' and the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' are projected based on several assumptions. Please refer to the information beside the bar chart in the statement for details.

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A8: Under the chart of 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65', what are the differences between the additional projected average monthly amount represented by the red and purple bar?

The additional projected average monthly amount represented by the red and purple bars demonstrate 2 scenarios of different additional personal contribution amounts and their effects on the overall projected average monthly amount after age 65.

The red bar represents the additional projected average monthly amount resulting from HKD1,000 additional personal contribution made into your MPF account monthly; whereas the purple bar represents the additional projected average monthly amount resulting from a specific monthly additional personal contributions on top of the projected average monthly amount after age 65 to 80 (for male) and 85 (for female) (shaded in green), which is required for maintaining a living standard equivalent to 2/3 (that is approximately 66.67%) of your projected relevant income as at age 65. This information is for your reference only. You are free to make additional personal contributions according to your own retirement goals.

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A9: What is 'Total contribution/Total transferred-in'?

It shows the total contribution or/and transfer-in cumulated from the date you joined scheme to 30 June 2011. Any withdrawals of funds from your account are not reflected.

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A10: What is 'Opening balance'? Which unit price is used for calculating the 'Closing balance'?

The opening balance is the dollar value of your MPF accounts as at 1 July 2010 which is equal to the closing balance of last year's statement. If the account was set up on or after 1 July 2010, the 'Opening balance' would be zero.

The unit price of 30 June 2011 (the last business day in this scheme financial period) is used for calculating the 'Closing balance'.

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A11: What is the difference between 'Fund Balance Summary' and 'Accrued Benefit Summary'?

These two summaries show the same total, but provide details of your account information using different approaches. 'Fund Balance Summary' shows your account transactions and balances by the funds you have invested in. 'Accrued Benefit Summary' shows your account transactions by different kinds of contributions or benefits, and it also provides the benefit entitlement of your account as at 30 June 2011.

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A12: Why does the closing balance of each column of 'Fund Balance Summary' differ from that of 'Accrued Benefit Summary'?

'Fund Balance Summary' shows the closing balance of each fund the member invested in the scheme financial period. 'Accrued Benefit Summary', on the other hand, is broken down into different types of contributions. Therefore, the closing balances of each column shown in the two summaries are different. However, the total closing balances of the two summaries would be the same.

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A13: What should I do if my correspondence address has been/will be changed?

Please advise us as soon as your correspondence address changes by simply completing a Personal Details Change Form (IN91).

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A14: Does my employer know my account balance?

Your employer only knows the balance derived from employer's contributions.

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A15: What is the meaning of 'Preserved' and 'Non-preserved' benefits under 'Transfer from other registered scheme(s)'?

'Transfer from other registered scheme(s)' means any benefits accrued from your previous employment or self-employment and transferred from another scheme(s). 'Preserved' benefits are derived from mandatory contributions or Minimum MPF benefits (MMB) transfers from an ORSO scheme. 'Non-preserved' benefits are derived from non-mandatory contributions.

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A16: Will I be entitled to the guaranteed balance if I switch my fund units in the Guaranteed Fund to other funds?(applicable to SuperTrust and SuperTrust Plus only)

No. The guarantee conditions do not apply to fund switching. You will only be entitled to the actual balance, i.e. the market value, which may be higher or lower than the guaranteed balance depending on the performance of the fund.

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A17: What is a 'Surcharge'?

If employers fail to pay contributions within the time limit set by the MPF legislation, they are required to pay a surcharge of 5% on the outstanding mandatory contributions. The surcharge is paid by employer but credited to the employees' accounts.

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A18: What is a 'Special bonus'?

Employees of large employers (or employers belonging to certain associations which have special agreements with us) are entitled to preferential fees and charges. The relevant scheme members purchase of funds are still based on standard unit prices and the discount rate is given in the form of bonus units which is called a 'Special bonus'.

A 'Special bonus' is not allocated to the MPF Conservative Fund (CPF) because the fees and charges have not yet been deducted from the unit prices of CPF. The discount for CPF is reflected directly from the unit deducted from your member accounts.

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A19: What is 'Employer reserve allocation'? Under what circumstances will this occur?

An 'Employer reserve allocation' will only occur if there are employer's voluntary contributions and/or employer's ORSO transfers. If an employee leaves employment, any benefits he is not entitled to will be treated as unvested benefits and remitted to the reserve account. As the unvested benefits essentially belong to the employer, the employer can withdraw these benefits at any time. Some employers have a special arrangement for allocating the unvested benefits to employees still employed by the company as at a predetermined allocation date. The allocation of unvested benefits is called 'Employer reserve allocation.'

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A20: There exist 'Transfer-in/out Summary' and 'Details of Transaction' sections in the annual member benefit statement of 2009/2010 but I could not found these 2 sections in the annual member benefit statement of 2010/11. What is the reason of removal of these 2 sections and what should I do if I want to get the information?

According to the latest Code on Disclosure for MPF Investment Funds (August 2008's edition), these information are no longer required to be shown in the MPF Annual Member Benefit Statement in respect of a financial period ending after 1 September 2010. You can obtain the information by submitting written request to the following address:

Retirement Benefits Administration
HSBC Life (International) Limited
P O Box 73770
Kowloon Central Post Office

Please note that you should state your full name, relevant employer ID, membership number(s) or HKID/passport number in above letter. If you wish to obtain the Transfer in/out Summary and Details of Transaction for more than one MPF account, please provide the employer ID and membership number of those accounts. Please be reminded that your signature must be the same as your previously submitted specimen.

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A1: How can I check my current investment allocation?

You can refer to the 'Investment Allocation' section for details if you have not changed your investment allocation after the date shown in the section. If it has been changed, you can logon our Personal Internet Banking services or call our HSBC MPF Hotline on (852) 2288 6729 to check the details of the current investment allocation.

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A2: What is the difference between unit price and market value?

Unit price and market value are directly related to each other. Unit price is the price per fund unit. When the unit price of a particular fund is high, the market value of the fund will also be high, and vice versa.

Market value = unit price x number of units held

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A3: Which part of the annual benefit statement should I refer to if I would like to know the investment returns for this scheme financial year?

You may refer to the 'Investment returns' in 'Fund Balance Summary' or 'Accrued Benefit Summary' section. The amounts are calculated based on the unit prices as at 30 June 2011 and are for reference only. The actual investment returns can be ascertained only when the benefits are paid out or transferred.

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A4: How can I calculate the amount of 'Account(s) gain/loss during the period'?

The amount of the 'Account(s) gain/loss during the period' is calculated by subtracting the opening balance and other transactions (but excluding special bonus and unit deduction(for fund level expenses)) during the scheme financial year from the closing balance as at 30 June 2011.

Example:
The unit price for the Balanced Fund as at 30 June 2011 (the last business day in this scheme financial year) is HKD15.18; the number of units held in Balanced Fund is 5,736.766 units, therefore the closing balance is HKD87,084.11 (i.e. 5,736.766 units x HKD15.18).

Account(s) gain/loss during the period = Closing balance - Opening balance - Total contribution invested (before fees) - Total amount transferred into scheme (before fees) + Total amount transferred out of scheme (after fees)

HKD87,084.11 - HKD40,431.76 - HKD12,000.00 - HKD28,269.00 + HKD673.30 = HKD7,056.65

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A5: When are fees for MPF Conservative Fund (CPF) deducted? Which part of the annual benefit statement should I refer to if I would like to know the amount deducted in this scheme financial year?

Fees and charges of an MPF Conservative Fund can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. MPF Conservative Fund under HSBC SuperTrust, SuperTrust Plus, SimpleChoice and ValueChoice uses method (ii) and the unit is deducted monthly.

Total fees deducted is shown as 'Unit deduction (for fund level expenses)' in the 'Fund Balance Summary' section and 'Accrued Benefit Summary' section.

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A1: What is 'Summary of Account Movements'?

The summary of account movements shows the overview of total amount move in and out of your HSBC MPF accounts within current scheme financial year.

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A2: What is the difference between 'Account(s) gain/loss during the period' and 'Account(s) gain/loss since inception'?

'Account(s) gain/loss during the period' shows the dollar value of overall account gain/loss of your MPF accounts, including 'special bonus' and 'unit deduction (for fund level expenses)' for MPF Conservative Fund, if applicable, for the current scheme financial year only.

While 'Account(s) gain/loss since inception' reflects the overall account gain/loss of your MPF accounts since you first joined that MPF account, which also includes 'special bonus' and 'unit deduction (for fund level expenses)' for MPF Conservative Fund, if applicable.

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A3: How can I calculate the amount of 'Account gain/loss since inception'?

The amount of the 'Account gain/loss since inception' is calculated by adding the 'investment returns', 'special bonus' and minus 'unit deduction (for fund level expenses)' for the MPF Conservative Fund of current year and previous years starting from the first day you joined that MPF account.

'Unit deduction (for fund level expenses)' is formerly named as 'Fees' in 'Fund Balance Summary' and 'Accrued Benefit Summary' section in annual benefit statements prior to 2009/10.

For 'Investment returns' in 2008/09 scheme financial year, please refer to the 'Account gain/loss' in that annual statements.

'Account gain/loss since inception' = all years' 'Investment returns' + all years' 'Special bonus' - all years' 'Unit deduction (for fund level expenses of the MPF Conservative Fund)'

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A1: Why do some of the statements show a few paragraphs stating that the account balance is zero?

If a scheme member's MPF account does not have any fund balances and transactions during the scheme financial year from 1 July 2010 to 30 June 2011, we will issue a statement explaining some possible circumstances that may result in a zero balance.

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A2: Under what circumstances will there be no contributions or fund balance for the scheme members?

• Employer must submit the first contributions by the tenth day after the last day of the month during which the 60-days permitted period for non-casual employee ends. Therefore it is possible that contributions are not yet due as at 30 June 2011.
• The relevant income is zero, and therefore, no contributions is payable.
• Non-casual employee leaves the scheme prior to any contributions being payable, i.e. non-casual employee leaves the employment within the 60-day permitted period after joining the employer.
• The contributions may have been processed after 30 June 2011.
• The scheme member has enrolled with another scheme and hence has not made any contributions to the account.
• The scheme member is a preserved account holder and the transferred monies have not yet been received or processed as at 30 June 2011.

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A1: What can I do about my accrued benefits when I cease the self-employment?

You can choose one of the options below. Your options include:

• Retaining your accrued benefits in a preserved account in the existing HSBC MPF scheme to enjoy special rate of Management Fees. For more details, please click here.
• Transferring them to a preserved account in any MPF scheme of your choice
• Transferring them to your new account under your new employer's MPF scheme
• Transferring them to your existing account in an Industry Scheme (if any)

As you are accumulating your funds for retirement purpose, it is important that you consider the long term financial strength and security of the MPF service providers when making your decision.

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A2: What is the difference between 'Closing balance' and 'Adjusted closing balance' in 'Accrued Benefit Summary'? (applicable to SuperTrust and SuperTrust Plus only)

The 'Closing balance' is the dollar value of your MPF accounts, calculated at unit price, as at 30 June 2011.

The 'Adjusted closing balance' takes the higher amount of the market value or the guaranteed balance of the Guaranteed Fund. If you have invested in the Guaranteed Fund, you are entitled to the higher of the market value or the guaranteed balance, when any one of the guaranteed conditions is met (Please refer to the 'Principal Brochure' for details).

Other than the Guaranteed Fund, the 'Adjusted closing balance' is equal to the 'Closing balance'.

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A1: If I have reached the age of 65 but have not withdrawn my MPF accrued benefits, will an annual benefit statement be delivered to me?

Yes. We will deliver the statement to you as long as you remain as our scheme member as at 30 June 2011. There is a section on the last page of the statement to remind you to choose whether to retain your MPF accrued benefits in the scheme or withdraw them.

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A2: Do I need to take any action on the enclosed INAT form?

Since you have reached/will shortly attain the age of 65, this form is for you to inform us whether you would like to withdraw your MPF accrued benefits or retain them in the scheme. According to the MPF legislation, if we do not receive your instruction, your accrued benefits would be retained within the scheme. By informing us your selection, please complete and return the enclosed INAT form to us. If you choose to claim your accrued benefits, please complete and return INAT form and the claim form 'INPW' with a copy of your HKID card to us.

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A1: Does the annual benefit statement show the monthly contribution records?

Yes. You can refer to the 'Contribution Summary' section which summarises contributions made to your MPF accounts within the scheme financial year. Only transaction(s) completely processed on or before 30 June 2011 is included in the statement. You can also view your contribution records for the past 18 months through our Personal Internet Banking.

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A2: Does the annual benefit statement of 30 June 2011 include any outstanding contributions received after 30 June 2011?

No. Only contributions received and completely processed on or before 30 June 2011 are included in the statement. For information on your latest account balance, you can logon our Personal Internet Banking, call our HSBC MPF Hotline on (852) 2288 6729 or use our ATM service.

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A3: Which part of the statement should I refer to if I would like to know the total contributions made by myself in the scheme financial year?

You may refer to the 'Total contribution invested (before fees)' field under 'Summary of Account Movements', 'Fund Balance Summary' or 'Accrued Benefit Summary' section for the total contributions made for your HSBC MPF accounts, You may also refer to the 'Contribution Summary' section for details.

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A4: Which part of the statement should I refer to if I would like to know the total contributions made since I joined the scheme?

You may refer to the 'Accrued Benefit Summary' section for details. The total contributions made by yourself since you joined the scheme are shown as 'Total contribution/Total transferred-in' in the 'Member' column.

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A5: I have transferred the MPF scheme from an HSBC MPF SuperTrust to an HSBC MPF SuperTrust Plus during 1 Jul 2010 to 30 Jun 2011, why is my 'Opening balance' dated 1 Jul 2010 zero? Why does the amount of 'Total contribution/Total transferred-in' in the 'Accrued Benefit Summary' not match with the total contributions made by myself since I joined the company?

Due to the account in SuperTrust Plus was set up on or after 1 July 2010, the 'Opening balance' would be zero. The 'Total contribution/Total transferred-in' shows the summation of total contributions made to and the accrued benefits transferred to the scheme in SuperTrust Plus. The accrued benefit transferred to SuperTrust Plus is calculated according to the unit price of the investment fund(s) at the date of scheme transfer.

Example:
The total contributions made in SuperTrust scheme is HKD7,000.00 and 560.000 units of Balanced Fund have been bought. Unit price of Balanced Fund at date of transfer is HKD13.00. So, accrued benefit transferred to SuperTrust Plus is HKD7,280.00 (i.e. 560.000 units x HKD13.00).

The total contributions made in SuperTrust Plus scheme is HKD8,000.00. 'Total contribution/Total transferred-in' shown in the 'Accrued Benefit Summary' of SuperTrust Plus would be HKD15,280.00 (i.e. HKD7,280.00 + HKD8,000.00).

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A1: What is consolidated mailing?

Scheme members with more than one HSBC MPF account will receive all their annual benefit statements in one envelope, mailed to the most recently updated address in the HSBC MPF records.

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A2: What is 'Total Asset Allocation'?

The total asset allocation shows the aggregated fund balance of your MPF accounts stated in the enclosed annual benefit statements as at 30 June 2011.

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A3: What is 'MPF Accrued Benefits Projection at Different Age'?

The 'MPF Accrued Benefits Projection at Different Age' shows the projected benefits of your MPF accounts at different age intervals until the age of 65. The projection is prepared based on a set of assumptions. Please refer to the information beside the bar chart in the statement for details of the assumptions.

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A4: What is 'Projected average monthly amount'?

Projected average monthly amount refers to the expected monthly installment available to you, which lasts from the ages of 65 to 80 if you are male, and 65 to 85 if you are female, based on the total projected MPF benefit at age 65.

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A5: What does the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' represent?

The 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' compares your projected relevant income at age 65 with the projected average monthly amount from age 65 to 80 (for male) or 85 (for female). Besides, it also shows your additional projected average monthly amount from age 65 to 80 (for male) or 85 (for female) if you start making a certain amount of additional monthly personal contribution on 1 July 2011. The 'Comparison on projected relevant income at age 65 and average monthly amount after age 65' is prepared based on a set of assumptions. Please refer to the information beside the bar chart in the statement for details.

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A6: What does the 'percentage of your projected relevant income at age 65' represent?

This percentage is calculated by dividing your 'Projected average monthly amount' for your retirement by the 'Projected relevant income at age 65'. It estimates the portion of the 'Projected relevant income as at age 65' which could be maintained after your retirement at age 65.

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A7: What is the difference between the 'MPF Accrued Benefits Projection at Different Age' and 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65'?

The 'MPF Accrued Benefits Projection at Different Age' reflects a projected lump sum of MPF accrued benefits until your retirement at age 65, while the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' shows a projected average monthly amount which will be available after your retirement until 80 (for male) or 85 (for female). The 'MPF Accrued Benefits Projection at Different Age' and the 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65' are projected based on several assumptions. Please refer to the information beside the bar chart in the statement for details.

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A8: Under the chart of 'Comparison on Projected Relevant Income at Age 65 and Average Monthly Amount after Age 65', what are the differences between the additional projected average monthly amount represented by the red and purple bar?

The additional projected average monthly amount represented by the red and purple bars demonstrate 2 scenarios of different additional personal contribution amounts and their effects on the overall projected average monthly amount after age 65.

The red bar represents the additional projected average monthly amount resulting from HKD1,000 additional personal contribution made into your MPF account monthly; whereas the purple bar represents the additional projected average monthly amount resulting from a specific monthly additional personal contributions on top of the projected average monthly amount after age 65 to 80 (for male) and 85 (for female) (shaded in green), which is required for maintaining a living standard equivalent to 2/3 (that is approximately 66.67%) of your projected relevant income as at age 65. This information is for your reference only. You are free to make additional personal contributions according to your own retirement goals.

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A9: What is 'Total contribution/Total transferred-in'?

It shows the total contribution or/and transfer-in cumulated from the date you joined scheme to 30 June 2011. Any withdrawals of funds from your account are not reflected.

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A10: What is 'Opening balance'? Which unit price is used for calculating the 'Closing balance'?

The opening balance is the dollar value of your MPF accounts as at 1 July 2010 which is equal to the closing balance of last year's statement. If the account was set up on or after 1 July 2010, the 'Opening balance' would be zero.

The unit price of 30 June 2011 (the last business day in this scheme financial period) is used for calculating the 'Closing balance'.

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A11: What is the difference between 'Fund Balance Summary' and 'Accrued Benefit Summary'?

These two summaries show the same total, but provide details of your account information using different approaches. 'Fund Balance Summary' shows your account transactions and balances by the funds you have invested in. 'Accrued Benefit Summary' shows your account transactions by different kinds of contributions or benefits, and it also provides the benefit entitlement of your account as at 30 June 2011.

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A12: Why does the closing balance of each column of 'Fund Balance Summary' differ from that of 'Accrued Benefit Summary'?

'Fund Balance Summary' shows the closing balance of each fund the member invested in the scheme financial period. 'Accrued Benefit Summary', on the other hand, is broken down into different types of contributions. Therefore, the closing balances of each column shown in the two summaries are different. However, the total closing balances of the two summaries would be the same.

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A13: What should I do if my correspondence address has been/will be changed?

Please advise us as soon as your correspondence address changes by simply completing a Personal Details Change Form (IN91).

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A14: What is the meaning of 'Preserved' and 'Non-preserved' benefits under 'Transfer from other registered scheme(s)'?

'Transfer from other registered scheme(s)' means any benefits accrued from your previous employment or self-employment and transferred from another scheme(s). 'Preserved' benefits are derived from mandatory contributions or Minimum MPF benefits (MMB) transfers from an ORSO scheme. 'Non-preserved' benefits are derived from non-mandatory contributions.

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A15: Will I be entitled to the guaranteed balance if I switch my fund units in the Guaranteed Fund to other funds? (applicable to SuperTrust and SuperTrust Plus only)

No. The guarantee conditions do not apply to fund switching. You will only be entitled to the actual balance, i.e. the market value, which may be higher or lower than the guaranteed balance depending on the performance of the fund.

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A16: There exist 'Transfer-in/out Summary' and 'Details of Transaction' sections in the annual member benefit statement of 2009/2010 but I could not found these 2 sections in the annual member benefit statement of 2010/11. What is the reason of removal of these 2 sections and what should I do if I want to get the information?

According to the latest Code on Disclosure for MPF Investment Funds (August 2008's edition), these information are no longer required to be shown in the MPF Annual Member Benefit Statement in respect of a financial period ending after 1 September 2010. You can obtain the information by submitting written request to the following address:

Retirement Benefits Administration
HSBC Life (International) Limited
P O Box 73770
Kowloon Central Post Office

Please note that you should state your full name, relevant employer ID, membership number(s) or HKID/passport number in above letter. If you wish to obtain the Transfer in/out Summary and Details of Transaction for more than one MPF account, please provide the employer ID and membership number of those accounts. Please be reminded that your signature must be the same as your previously submitted specimen.

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A1: How can I check my current investment allocation?

You can refer to the 'Investment Allocation' section for details if you have not changed your investment allocation after the date shown in the section. If it has been changed, you can logon our Personal Internet Banking services or call our HSBC MPF Hotline on (852) 2288 6729 to check the details of the current investment allocation.

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A2: What is the difference between unit price and market value?

Unit price and market value are directly related to each other. Unit price is the price per fund unit. When the unit price of a particular fund is high, the market value of the fund will also be high, and vice versa.

Market value = unit price x number of units held

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A3: Which part of the annual benefit statement should I refer to if I would like to know the investment returns for this scheme financial year?

You may refer to the 'Investment returns' in 'Fund Balance Summary' or 'Accrued Benefit Summary' section. The amounts are calculated based on the unit prices as at 30 June 2011 and are for reference only. The actual investment returns can be ascertained only when the benefits are paid out or transferred.

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A4: How can I calculate the amount of 'Account(s) gain/loss during the period'?

The amount of the 'Account(s) gain/loss during the period' is calculated by subtracting the opening balance and other transactions (but excluding special bonus and unit deduction(for fund level expenses)) during the scheme financial year from the closing balance as at 30 June 2011.

Example:
The unit price for the Balanced Fund as at 30 June 2011 (the last business day in this scheme financial year) is HKD15.18; the number of units held in Balanced Fund is 5,736.766 units, therefore the closing balance is HKD87,084.11 (i.e. 5,736.766 units x HKD15.18).

Account(s) gain/loss during the period = Closing balance - Opening balance - Total contribution invested (before fees) - Total amount transferred into scheme (before fees) + Total amount transferred out of scheme (after fees)

HKD87,084.11 - HKD40,431.76 - HKD12,000.00 - HKD28,269.00 + HKD673.30 = HKD7,056.65

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A5: When are fees for MPF Conservative Fund (CPF) deducted? Which part of the annual benefit statement should I refer to if I would like to know the amount deducted in this scheme financial year?

Fees and charges of an MPF Conservative Fund can be deducted from either (i) the assets of the fund or (ii) members' account by way of unit deduction. MPF Conservative Fund under HSBC SuperTrust, SuperTrust Plus, SimpleChoice and ValueChoice uses method (ii) and the unit is deducted monthly.

Total fees deducted is shown as 'Unit deduction (for fund level expenses)' in the 'Fund Balance Summary' section and 'Accrued Benefit Summary' section.

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A1: What is 'Summary of Account Movements'?

The summary of account movements shows the overview of total amount move in and out of your HSBC MPF accounts within current scheme financial year.

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A2: What is the difference between 'Account(s) gain/loss during the period' and 'Account gain/loss since inception'?

'Account(s) gain/loss during the period' shows the dollar value of overall account gain/loss of your MPF accounts, including 'special bonus' and 'unit deduction (for fund level expenses)' for MPF Conservative Fund, if applicable, for the current scheme financial year only.

While 'Account(s) gain/loss since inception' reflects the overall account gain/loss of your MPF accounts since you first joined that MPF account, which also includes 'special bonus' and 'unit deduction (for fund level expenses)' for MPF Conservative Fund, if applicable.

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A3: How can I calculate the amount of 'Account gain/loss since inception'?

The amount of the 'Account gain/loss since inception' is calculated by adding the 'investment returns', 'special bonus' and minus 'unit deduction (for fund level expenses)' for the MPF Conservative Fund of current year and previous years starting from the first day you joined that MPF account.

'Unit deduction (for fund level expenses)' is formerly named as 'Fees' in 'Fund Balance Summary' and 'Accrued Benefit Summary' section in annual benefit statements prior to 2009/10.

For 'Investment returns' in 2008/09 scheme financial year, please refer to the 'Account gain/loss' in that annual statements.

'Account gain/loss since inception' = all years' 'Investment returns' + all years' 'Special bonus' - all years' 'Unit deduction (for fund level expenses of the MPF Conservative Fund)'

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A1: Why do some of the statements show a few paragraphs stating that the account balance is zero?

If a scheme member's MPF account does not have any fund balances and transactions during the scheme financial year from 1 July 2010 to 30 June 2011, we will issue a statement explaining some possible circumstances that may result in a zero balance.

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A2: Under what circumstances will there be no contributions or fund balance for the scheme members?

• The relevant income of the scheme member is less than the minimum relevant income level for mandatory contribution purpose, and therefore, no contributions is payable.
• The contribution payments may have been processed after 30 June 2011.

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