Fund announcements

FIDELITY RETIREMENT MASTER TRUST NOTICE TO MEMBERS AND EMPLOYERS

30/11/2015

Dear Members and Employers,

 

We are writing to inform you that the Principal Brochure and/or the Trust Deed will be amended as further described below.

 

1. Withdrawal by instalments

Key points relating to withdrawal of accrued benefits by instalments

 

1. From 1 February 2016, Members who reach the age of 65 or retire on or after the age of 60 may choose to withdraw their accrued benefits attributable to MPF Balances, and where applicable, Voluntary Balances by instalments by submitting the relevant form specifying the exact amount of withdrawal and other relevant information. The first 4 respective instalments of MPF Balances and Voluntary Balances in a calendar year from each account will be made free of charge (other than any necessary transaction costs permitted under the General Regulation).

2. With effect from 1 April 2016, a processing fee of up to HK$100 (payable by cheque submitted with the relevant form) may be charged for any withdrawal in excess of the 4 instalments from each account in each calendar year (if the number of withdrawals for MPF Balances and/or for Voluntary Balances exceeds 4 instalments in a calendar year, for each subsequent concurrent withdrawal of MPF Balances and Voluntary Balances in that year, only one processing fee of up to HK$100 will be charged).

3. Please note that bank charges may apply if Members choose to be paid the withdrawal amount directly to their bank account.

4. The form for withdrawal by instalments is available from the Investment Manager and the Trustee.

 

Withdrawal of MPF Balances by instalments will be permitted under the Mandatory Provident Fund Schemes (Amendment) Ordinance 2015 (“Amendment Ordinance”) with effect from 1 February 2016. The arrangements relating to withdrawal by instalments are as further described below.

 

In accordance with the Amendment Ordinance, with effect from 1 February 2016, a Member (“Eligible Member”) who becomes entitled to his MPF Balances upon reaching 65 years of age or upon early retirement on or after the Eligible Member reaching age 60, may elect to withdraw his MPF Balances in one lump sum, or in phases by separate instalments.

 

Members may elect to make withdrawals in phases by instalments in the following circumstances:

(a) MPF Balances – Eligible Members (i.e. Members who have attained the age of 65 years or on early retirement on or after reaching the age of 60) may elect to withdraw their MPF Balances by instalments.

(b) Voluntary Balances

■ Employee Members who are Eligible Members may, subject to their Employer’s consent where applicable, elect to withdraw their Voluntary Balances by instalments.

■ Self-Employed Members and Personal Account Members may elect to withdraw their Voluntary Balances by instalments.

(c) SVC Balances – SVC Members may elect to withdraw their SVC Balances by instalments.

 

“Eligible Benefits” include the MPF Balances and, where applicable, Voluntary Balances and the SVC Balances as described above.

 

Members who intend to make withdrawals by instalments should specify the exact amount of withdrawal and other relevant information in the relevant form which is available from the Investment Manager and the Trustee.

 

The first 4 respective instalments of MPF Balances and Voluntary Balances in a calendar year from each account will be made free of charge (other than any necessary transaction costs permitted under the General Regulation). With effect from 1 April 2016, a processing fee of up to HK$100 (payable by cheque submitted with the relevant form) may be charged for any withdrawal in excess of the 4 instalments from each account in each calendar year (if the number of withdrawals for MPF Balances and/or for Voluntary Balances exceeds 4 instalments in a calendar year, for each subsequent concurrent withdrawal of MPF Balances and Voluntary Balances in that year, only one processing fee of up to HK$100 will be charged). (For the avoidance of doubt, from 1 February 2016 to 31 March 2016, the payment of MPF Balances and Voluntary Balances from each account by instalments will be free of charge (other than any necessary transaction costs as permitted under the General Regulation), regardless of the number of withdrawals during that period.) In addition, bank charges may apply if Eligible Members choose to be paid the withdrawal amount directly to their bank account.

 

The SVC Processing Fee which is applicable after the first 4 instalments of SVC Balances in a calendar year will be reduced from HK$200 to HK$100 per instalment with effect from 1 April 2016.

 

For the payment of the Eligible Benefits, the normal period for payment will be 20 days after receipt of a request for payment. If MPF Balances and Voluntary Balances are to be paid out in one lump sum, the maximum period between the date of receipt of a request for payment and the date of payment will be the later of (i) 30 days of receipt of a valid request for payment and (ii) 30 days after the contribution day in respect of the last contribution period that ends before the receipt of the request. If the Eligible Benefits are to be paid out in phases by instalments, unless otherwise agreed between the Trustee and the Member, each instalment shall be paid no later than 30 days after the requested payment date of such instalment in accordance with the Member’s instruction given to the Trustee.

 

Members should note that in the case of withdrawal of the Eligible Benefits by instalments, any balance(s) remaining in a Member’s account(s) will continue to be invested in the relevant Constituent Fund(s) and therefore subject to investment risks.

 

2. Update to certain definitions

In response to the payment by instalments related changes introduced by the Amendment Ordinance, the definitions of “Offer spread”, “Bid spread” and “Withdrawal charge” will be updated with effect from 1 February 2016.

 

3. Fourth Addendum to Principal Brochure and Fifth Supplemental Deed to the Trust Deed

The Principal Brochure is revised by way of a Fourth Addendum to reflect the changes set out above. The Trust Deed of the Scheme is revised by way of a Fifth Supplemental Deed to reflect the applicable changes set out above and other changes relating to the Amendment Ordinance. These changes will not have any adverse impact on the Members of the Scheme. The changes described in this Notice are in summary form only. Members should review the Fourth Addendum for further details on the changes made.

 

Copies of the Principal Brochure and the First to Fourth Addenda can be obtained free of charge during normal working hours on any day (excluding Saturdays, Sundays and public holidays) at the offices of the Investment Manager at Level 21, Two Pacific Place, 88 Queensway, Admiralty, Hong Kong. Copies of the Trust Deed, as amended, may be inspected during normal working hours at the offices of the Investment Manager.

 

Should you have any questions about the above matters, please feel free to contact the Fidelity Investor Hotline at (852) 2629 2629 (for members) or Fidelity Retirement Hotline (852) 2629 2677 (for employers).

 

For further details, please click and download the attached Investor Notice document.

 

For further details, please click and download the attached Investor Notice document.
 Investor Notice