Grant Schools Provident Fund Rules
[19 December 1952]
(Format changes—E.R. 6 of 2024)
These rules may be cited as the Grant Schools Provident Fund Rules.
In these rules, unless the context otherwise requires— (L.N. 78 of 2000)
account (帳目), in relation to a contributor, means an account maintained for the contributor under rule 8(3); (L.N. 78 of 2000) continuous contributory service (供款無間年資), in relation to a teacher, means any period of service during which the teacher—(a)makes continuous contributions to the fund or a provident or super-annuation fund approved by the Permanent Secretary for the purposes of these rules; and(b)has not closed his account in that fund at any time,and includes—(i)study leave, sick leave or maternity leave approved by the Permanent Secretary; and(ii)any service—(A)at 2 or more grant schools;(B)at 1 or more grant schools and at 1 or more subsidized schools;(C)at 1 or more grant schools and at 1 or more DSS schools; or(D)at 1 or more grant schools and at 1 or more subsidized schools and at 1 or more DSS schools,either without a break in teaching service or with such a break if the break has been approved by the Permanent Secretary; (L.N. 78 of 2000; 3 of 2003 s. 16) contract (合約), in relation to a contributor, means a fixed term contract under which the contributor is employed; (L.N. 87 of 1976) contributor (供款人) means a person who contributes compulsorily to the fund or who has exercised an option to contribute to the fund; fund (基金) and board (委員會) mean respectively the provident fund maintained under these rules and board of control established under these rules; (L.N. 78 of 2000) Grant Code (補助則例) means the code under the terms of which, before 1 April 1973, the Government gave grants in aid to certain secondary schools; (L.N. 87 of 1976) grant school (補助學校) means any secondary school which receives subsidies in accordance with the code of aid for secondary schools and which was, before 1 April 1973, in receipt of grants in accordance with the Grant Code; (L.N. 87 of 1976) Grant Schools Council (補助學校議會) means that body of persons composed of representatives of the grant schools and for the time being known as the Grant Schools Council; secretary (秘書) means the secretary appointed in accordance with the provisions of rule 5; (G.N.A. 116 of 1961) subsidized school (津貼學校) has the meaning ascribed thereto in the Subsidized Schools Provident Fund Rules (Cap. 279 sub. leg. D); Subsidized Schools Provident Fund (津貼學校公積金) means the provident fund maintained in accordance with the Subsidized Schools Provident Fund Rules (Cap. 279 sub. leg. D); treasurer (司庫) means the treasurer appointed in accordance with the provisions of rule 6; without a break in teaching service (教學服務並無中斷) means continuous teaching employment in 1 or more grant schools, subsidized schools or DSS schools. (L.N. 78 of 2000)In the calculation of continuous contributory service for the purposes of rules 9, 9A, 13 and 13B, where a contributor commenced his service on a day in a month other than the first day of that month, he shall be deemed to have commenced his service on the first day of that month. (L.N. 78 of 2000)
The object of these rules is the maintenance and management of the fund which provides for payments in the case of the resignation, retirement, dismissal, termination of contract or death of teachers in grant schools and teachers in DSS schools who are contributors. Rights and liabilities and procedure in respect of the fund shall hereafter be entirely governed by these rules.
The complete administration and control of the fund, subject to these rules, shall be vested in a board of control composed of a chairman who shall be nominated and replaced whenever it appears to be desirable by the Grant Schools Council, the Permanent Secretary or his representative, the Director of Accounting Services or his representative, and 8 additional members who shall themselves be contributors. (3 of 2003 s. 15)
There shall be a vice chairman who shall be nominated by the Grant Schools Council out of the 8 additional contributory members and replaced whenever it appears desirable. (G.N.A. 85 of 1955; G.N.A. 116 of 1961)
The 8 additional members shall be nominated as follows—
2 shall be nominated jointly by contributors who are members of the staff of Roman Catholic boys schools in Hong Kong;
2 shall be nominated jointly by contributors who are members of the staff of Roman Catholic girls schools in Hong Kong;
2 shall be nominated jointly by contributors who are members of the staff of the Diocesan Boys’ School, the Diocesan Girls’ School, St. Paul’s Co-educational College, St. Paul’s College, and St. Mark’s School;
1 shall be nominated jointly by contributors who are members of the staff of Ying Wa College, Ying Wa Girls’ School, and the Methodist College;
1 shall be nominated jointly by contributors who are members of the staff of St. Stephen’s Girls’ College and Heep Yunn School. (L.N. 87 of 1976)
The 8 additional members shall serve until the end of the annual general meeting of the board held in the month of January 1962, and thereafter until the end of each alternate annual general meeting of the board when such members shall cease to serve but shall be eligible for renomination: (G.N.A. 116 of 1961)Provided that if such a member ceases to be a contributor or is unable or unwilling to act, or resigns, or is absent for more than 3 months from Hong Kong, a contributor may be nominated as a member in similar manner in his place. (L.N. 10 of 1987)
5 members of the board shall form a quorum and the chairman or in his absence the vice chairman shall have a casting vote. (G.N.A. 85 of 1955)
The board shall regulate its own procedure and in the absence of the chairman and the vice chairman a temporary chairman shall be elected from amongst the members of the board. (G.N.A. 85 of 1955)
An annual general meeting of the members of the board shall be held not later than 31 August in each year. (L.N. 87 of 1976)
The validity of any proceedings of the board shall not be affected by any vacancy among the members thereof or by any defect in the appointment of any member thereto.
All questions coming or arising before any meeting of the board shall be determined by a majority of the members present and voting thereon.
For the purposes of the fund, the financial year shall be deemed to run from 1 September in any year until 31 August next following. (L.N. 232 of 1997)
The board shall as necessary elect from amongst its members a secretary who shall summon such meetings as may be required by the board, of which he shall give at least 7 days’ notice with an agenda for discussion. (E.R. 6 of 2024)
The secretary shall maintain minutes of each meeting and a record of the members of the board from time to time.
(Repealed G.N.A. 116 of 1961)
A treasurer of the fund shall be appointed by the Director of Accounting Services who may if and whenever the Director of Accounting Services thinks fit also act as his representative on the board under rule 4.
The cost of the administration of the fund shall be paid out of the income of the fund and without limiting the foregoing, the Financial Secretary may direct that an annual supervision fee, to be determined by him, shall be charged against the income of the fund and paid into the general revenue to reimburse the Government for its costs incurred in administering the fund. (L.N. 162 of 1996)
Every teacher approved for the purposes of the Grant Code or the code of aid for secondary schools (including any such teacher while on probation) shall be required to contribute to the fund in the manner provided in rule 8, except— (L.N. 87 of 1976; L.N. 239 of 1982; L.N. 162 of 1996)
any teacher employed on a temporary basis;
any teacher in receipt of salary based on a salary scale applicable to unqualified teachers: Provided that any such teacher may at his option contribute to the fund;
any teacher who is in continuous contributory service otherwise than by reason of contributing to the Subsidized Schools Provident Fund: Provided that any such teacher may at his option contribute to the fund;
any teacher who, on being first appointed to a grant school, is over the age of 55 years: (L.N. 162 of 1996) Provided that— (i)the provisions of this paragraph shall not apply in the case of any such teacher who, at the time of first appointment to a grant school, is in continuous contributory service by reason of making contribution to the Subsidized Schools Provident Fund; and (ii)any such teacher who, at the time of first appointment to a grant school, is in continuous contributory service otherwise than by reason of making contribution to the Subsidized Schools Provident Fund, may at his option contribute to the fund;
any teacher who is a member of a religious order, convent or missionary body: Provided that any such teacher may at his option contribute to the fund;
any teacher employed on a part time basis: Provided that, subject to the approval of the Permanent Secretary, any such teacher may at his option contribute to the fund. (3 of 2003 s. 16)
(Repealed L.N. 162 of 1996)
Any option exercised pursuant to the provisions of paragraph (1) may be exercised at any time, but shall— (L.N. 239 of 1982; L.N. 162 of 1996)
be irrevocable; and
not be exercised with retrospective effect otherwise than—
to the date of first appointment in a grant school; or
for a period of 3 months,
whichever is the less.
(Repealed L.N. 162 of 1996)
Any question arising as to whether, for the purpose of paragraph (1), a teacher is employed on a temporary basis shall be determined by the Permanent Secretary whose decision shall be final. (3 of 2003 s. 16)
Where a grant school ceases to be a grant school and becomes a DSS school, a contributor employed in the grant school who commences employment in the DSS school as a teacher may, subject to rule 7A, contribute to the fund. (L.N. 78 of 2000)
Where a teacher employed in a grant school commences employment in a DSS school as a teacher for the first time (since the commencement of the Grant Schools Provident Fund (Amendment) Rules 2000 ) in a case other than that to which paragraph (4) applies, he may, subject to rule 7B, contribute to the fund. (L.N. 78 of 2000)
A contributor employed in a DSS school may at any time opt not to contribute to the fund. (L.N. 78 of 2000)
A contributor employed in a DSS school who has exercised the option under paragraph (6) is not entitled to contribute to the fund when he is employed in the DSS school. (L.N. 78 of 2000)
Where a grant school ceases to be a grant school and becomes a DSS school, a contributor employed in the grant school who commences employment in the DSS school as a teacher shall have the option of—
having his account closed in accordance with rule 13 and receiving payment in accordance with rule 14; or
continuing to contribute to the fund under these rules.
If the contributor has exercised the option under paragraph (1)(a), he is not entitled to contribute to the fund when he is employed in the DSS school.
If the contributor has exercised the option under paragraph (1)(b) and subsequently commences employment in another DSS school as a teacher for the first time (since the commencement* of the Grant Schools Provident Fund (Amendment) Rules 2000 ) in a case other than that to which paragraph (1) applies, he shall have the option of—
having his account closed in accordance with rule 13 and receiving payment in accordance with rule 14; or
continuing to contribute to the fund under these rules.
If the contributor has exercised the option under paragraph (3)(a), he is not entitled to contribute to the fund when he is employed in that other DSS school.
If the contributor has exercised the option under paragraph (3)(b), he is not entitled to contribute to the fund if he commences employment in another DSS school as a teacher at a subsequent time in a case other than that to which paragraph (1) applies.
Where a contributor employed in a grant school commences employment in a DSS school as a teacher for the first time (since the commencement* of the Grant Schools Provident Fund (Amendment) Rules 2000 ) in a case other than that to which rule 7A(1) applies, he shall have the option of—
having his account closed in accordance with rule 13 and receiving payment in accordance with rule 14; or
continuing to contribute to the fund under these rules.
If the contributor has exercised the option under paragraph (1)(a), he is not entitled to contribute to the fund when he is employed in the DSS school.
If the contributor has exercised the option under paragraph (1)(b), he is not entitled to contribute to the fund if he commences employment in another DSS school as a teacher at a subsequent time in a case other than that to which rule 7A(1) applies.
Contribution to the fund by a contributor employed in a grant school shall be at the rate of 5 per cent of the contributor’s basic salary, including any allowances approved for that purpose by the Permanent Secretary, and, except with the consent of the Permanent Secretary, shall be payable only in respect of periods during which the contributor draws his basic salary. (L.N. 87 of 1976; L.N. 78 of 2000; 3 of 2003 s. 16)
Contribution to the fund by a contributor employed in a DSS school shall be at the rate of 5 per cent of the contributor’s salary under his contract of employment, and, except with the consent of the Permanent Secretary, shall be payable only in respect of periods during which the contributor draws such salary. (L.N. 78 of 2000; 3 of 2003 s. 16)
Subject to paragraph (2A), the contributions shall be deducted from salaries monthly by each management authority who shall within 7 days thereafter pay to the treasurer the amount of such deduction. (G.N.A. 116 of 1961; L.N. 239 of 1982; 27 of 2004 s. 70)
Where an option to contribute to the fund is exercised with retrospective effect under rule 7(2A) or (2B), any contributions payable by a contributor in respect of the retrospective period shall be deducted, in such instalments as the Permanent Secretary may determine, from the salary of the contributor monthly by the management authority who shall within 7 days thereafter pay to the treasurer the amount of such deduction. (L.N. 239 of 1982; 3 of 2003 s. 16; 27 of 2004 s. 70)
It shall be the duty of the management authority to maintain an independent complete account for each contributor in his school which shall specify— (27 of 2004 s. 70)
contributions paid;
donations made by Government in accordance with rule 9;
donations made by the school in accordance with rule 9A (if applicable); and (L.N. 78 of 2000)
such further credits for the previous year as shall have been notified to him by the treasurer. (L.N. 239 of 1982)
The total of each such account shall be reconciled annually with the treasurer, and the detail shall be available for inspection by the contributor.
For each contribution by a contributor employed in a grant school, Government shall pay to the fund a sum referred to in these rules as a Government donation. (L.N. 78 of 2000)
A Government donation shall be paid to the fund each month when the contribution by a contributor employed in a grant school becomes payable, or, in the case of any contribution payable under rule 8(2A), when the contribution by a contributor is deducted from his salary, and shall be an amount equal to the following percentage of the contributor’s basic salary, including any allowance approved for that purpose by the Permanent Secretary— (L.N. 78 of 2000; 3 of 2003 s. 16)
5 per cent, if his continuous contributory service is less than 10 years;
10 per cent, if his continuous contributory service is not less than 10 years but less than 15 years;
15 per cent, if his continuous contributory service is not less than 15 years.
A Government donation paid in respect of a contributor shall be forthwith credited to his account by the management authority and by the treasurer. (27 of 2004 s. 70)
(Repealed L.N. 78 of 2000)
With respect to contributions made at any time by a contributor during the period beginning on 1 September 1980 and ending immediately before the commencement of the Grant Schools Provident Fund (Amendment) Rules 1982 , the Government shall pay to the fund a sum equal to the difference between the aggregate amount of the donations payable by the Government to the fund in respect of those contributions during that period under the provisions of this rule then in force and the aggregate amount of the donations which would have been so payable in respect of those contributions under this rule if those Rules had been in force during that period; and the account of each such contributor kept in respect of that period shall be adjusted and credited accordingly in respect of each of his contributions made in that period.
Where, in respect of any month for which a Government donation has been payable, a contributor is subsequently and after the commencement# of the Grant Schools Provident Fund (Amendment) Rules 1985 awarded an increase of basic salary, or of any allowance approved by the Permanent Secretary for the purposes of this rule, or granted such an allowance a further Government donation shall be payable to the fund so as to increase the donation for that month to the amount which would have been payable if the award had been taken into account when a donation first became payable. (L.N. 87 of 1985; 3 of 2003 s. 16)
Where the account of a contributor (whether or not employed in a grant school) has been closed in accordance with rule 13 (or purportedly in accordance with rule 13) and the contributor has received payment in accordance with rule 14 (or purportedly in accordance with rule 14) and has re-commenced employment in a grant school without a break in teaching service then, for the purpose of calculating the amount of the donations payable by the Government under this rule with respect to such re-commenced employment, no account shall be taken of any period of continuous contributory service completed prior to such re-commencement of employment. (L.N. 269 of 1990; L.N. 78 of 2000)
For each contribution by a contributor employed in a DSS school, the school shall pay to the fund a sum referred to in these rules as a DSS school donation.
A DSS school donation by a DSS school shall be paid to the fund each month when the contribution by a contributor employed in the DSS school becomes payable, and shall be an amount equal to the following percentage of the contributor’s salary under his contract of employment—
5 per cent, if his continuous contributory service is less than 10 years;
10 per cent, if his continuous contributory service is not less than 10 years but less than 15 years;
15 per cent, if his continuous contributory service is not less than 15 years.
A DSS school donation paid in respect of a contributor shall be forthwith credited to his account by the management authority of the relevant DSS school and by the treasurer. (27 of 2004 s. 70)
All sums considered by the board to be surplus to the normal cash requirements of the fund may at the direction of the board be invested or deposited by—
the treasurer; or
any investment manager appointed by the board with the approval of the Financial Secretary,
in such manner or by such method as the Financial Secretary may from time to time approve for that purpose, including the form of any contract, agreement, financial transaction or arrangement that may be entered into, and any dividends, interest, profits, gain or loss thereon shall be credited or debited to the fund.
A reserve fund shall be maintained, to which shall be—
credited each year—
the proceeds of any realization upon sale or maturity of any investment during the year in so far as such proceeds exceed the value of such investment carried in the books of the fund at the time of such sale or maturity;
the net amount of any Government donation and DSS school donation (if any), including any dividend earned thereby, standing to the credit of any contributor to whom, under rule 13, such donation is not payable; (L.N. 78 of 2000)
such proportion of the income derived from investments and deposits as the board may think fit; and
any gain arising from the revaluation of investments of the fund as at 31 August of any year; and (L.N. 162 of 1996)
debited each year—
any loss incurred upon sale or maturity during the year of any investment having regard to the value of such investment carried in the books of the fund at the time of such sale or maturity;
such outgoings or losses incurred by the fund as the Chief Executive may in special circumstances authorize or direct in writing; and (L.N. 162 of 1996; 55 of 2000 s. 3)
any loss arising from the revaluation of investments of the fund as at 31 August of any year. (L.N. 162 of 1996)
Where in any year the credit balance of the reserve fund, after crediting all the items specified in paragraph (1)(a), is less than the total of all the debits specified in paragraph (1)(b), an amount representing such difference shall be debited to the income and expenditure account and credited to the reserve fund.
Where in any year, after crediting and debiting all the items specified in paragraph (1), there is a credit balance in the reserve fund, such proportion as may be required to meet the 5 per cent dividend, guaranteed under rule 12(1), shall be debited to the reserve fund and credited to the income and expenditure account.
Where in any year, after crediting and debiting all the items specified in paragraphs (1) and (3), the credit balance of the reserve fund exceeds the aggregate of an amount equal to 5 per cent of the credit balance of the contributors’ accounts as at 31 August and the total amount of any outstanding Government loans made under rule 12(2), any such excess may, at the discretion of the board, be credited to the contributors’ accounts under rule 12(5).
When in any year the Financial Secretary determines under rule 12(4) that any Government loan made under rule 12(2) shall be repaid, either in whole or in part, then—
if the credit balance of the reserve fund exceeds the amount of the loan to be repaid, that amount shall be debited to the reserve fund and credited to the dividend deficiency account; and
if the credit balance of the reserve fund is less than the amount of the loan to be repaid, an amount representing such difference shall be debited to the income and expenditure account and credited to the reserve fund.
At each annual general meeting of the board, the board shall declare to the account of each contributor a credit of 5 per cent of each such account as at the previous 31 August, hereinafter referred to as the guaranteed dividend, out of the sum comprised of the following—
the income of the fund after providing for any expenses and for the amount, if any, credited to the reserve fund under rule 11(1)(a)(iii);
any amount debited to the income and expenditure account under rule 11(2);
any amount credited to the income and expenditure account under rule 11(3);
any amount credited to the income and expenditure account, being the amount of the transfer to the debit of the dividend deficiency account, of the balance of the guaranteed dividend which cannot be met from the income and expenditure account and which is underwritten by the Government by way of a loan made under paragraph (2).
Where in any year the guaranteed dividend cannot be met under paragraphs (1)(a), (1)(b) and (1)(c), the Financial Secretary may direct that a sum, sufficient to cover the debit of the dividend deficiency account under paragraph (1)(d), to be paid out of the general revenue and referred to in these rules as a Government loan, shall be paid to the fund.
A Government loan made under paragraph (2) shall not bear interest against the fund and shall be a charge against the reserve fund.
A Government loan made under paragraph (2) shall be repaid out of the fund at such time and in such instalments as the Financial Secretary may determine.
Subject to paragraph (6), the board may, at its annual general meeting, declare a supplementary dividend, subject to the approval of the Chief Executive, by way of a percentage of the account of each contributor as at the previous 31 August, to be credited to each account from the excess available under rule 11(4). (55 of 2000 s. 3)
No supplementary dividend shall be declared if any Government loan made under paragraph (2) has not been repaid.
Whenever a contributor ceases to be employed as a teacher in a grant school or DSS school (as the case may be) for any of the following reasons— (L.N. 78 of 2000)
after 10 years of continuous contributory service— (E.R. 6 of 2024)
he is compulsorily retired, or dismissed or his contract is terminated (on completion or otherwise), other than where he is compulsorily retired or dismissed, or his contract is terminated, on account of professional misconduct or being convicted of an offence; or
he retires voluntarily, resigns or terminates his contract (on completion or otherwise), other than where he retires voluntarily, resigns, or terminates his contract, in order to avoid compulsory retirement, dismissal, or termination of his contract, on account of professional misconduct or being convicted of an offence;
on the ground of ill health, certified by a Government medical board (in the case of a contributor employed in a grant school) or a registered medical practitioner within the meaning of section 2 of the Medical Registration Ordinance (Cap. 161) (in the case of a contributor employed in a DSS school), as constituting a reasonable ground for cessation of his employment; (L.N. 78 of 2000)
(in the case of a grant school) upon the school ceasing to be a grant school; (L.N. 78 of 2000)
(in the case of a DSS school) upon the school ceasing to be a DSS school, except where the school turns into a grant school; (L.N. 78 of 2000)
death,
then, subject to paragraph (3) and rule 7A or 7B (whichever is applicable) and rules 13A and 18, his account shall be closed and, in accordance with rule 14, the amount standing to the credit of his account at the date of the cessation of his employment, including all Government donations and DSS school donations (if any) and all dividends that have been declared up to and including that date, shall be paid to him or to his personal representative. (L.N. 259 of 1995; L.N. 78 of 2000)
Without prejudice to paragraph (1)(b), (c), (ca) and (d), whenever a contributor ceases to be employed as a teacher in a grant school or DSS school (as the case may be) after 5 years but less than 10 years of continuous contributory service for the reason that— (L.N. 78 of 2000; E.R. 6 of 2024)
he is compulsorily retired, or dismissed or his contract is terminated (on completion or otherwise), other than where he is compulsorily retired or dismissed, or his contract is terminated, on account of professional misconduct or being convicted of an offence; or
he retires voluntarily, resigns or terminates his contract (on completion or otherwise), other than where he retires voluntarily, resigns, or terminates his contract, in order to avoid compulsory retirement, dismissal, or termination of his contract, on account of professional misconduct or being convicted of an offence,
then, subject to paragraph (3) and rules 7B and 18, his account shall be closed and, in accordance with rule 14, the payment due to him as a contributor shall be an amount equal to that contributed by him up to the date of cessation of his employment and all dividends that have been declared on that contribution plus an amount equal to the following percentage of all Government donations and DSS school donations (if any) and all dividends that have been declared on such donations— (L.N. 78 of 2000)
50 per cent, if his continuous contributory service is less than 6 years;
60 per cent, if his continuous contributory service is not less than 6 years but less than 7 years;
70 per cent, if his continuous contributory service is not less than 7 years but less than 8 years;
80 per cent, if his continuous contributory service is not less than 8 years but less than 9 years;
90 per cent, if his continuous contributory service is not less than 9 years but less than 10 years. (L.N. 239 of 1982)
Without prejudice to paragraph (1)(b), (c), (ca) and (d), whenever a contributor ceases to be employed as a teacher in a grant school or DSS school (as the case may be)— (L.N. 78 of 2000)
after less than 5 years of continuous contributory service; or (E.R. 6 of 2024)
for any of the following reasons, (regardless of the length of his continuous contributory service) namely, that—
he is compulsorily retired, or dismissed or his contract is terminated (on completion or otherwise), on account of professional misconduct or being convicted of an offence; or
he retires voluntarily, resigns, or terminates his contract (on completion or otherwise), in order to avoid compulsory retirement, dismissal, or termination of his contract, on account of professional misconduct or being convicted of an offence,
then, subject to paragraph (3) and rules 7B and 18, his account shall be closed and, in accordance with rule 14, an amount equal to that contributed by him up to the date of the cessation of his employment, plus such dividends as have been declared on that contribution, shall be paid to him. (L.N. 239 of 1982; L.N. 78 of 2000)
On the application of a contributor who has ceased to make the contributions required under rule 8, the Permanent Secretary may, except— (3 of 2003 s. 16)
where, after 10 years of continuous contributory service, the contributor is compulsorily retired; or (E.R. 6 of 2024)
in any case to which paragraph (2A)(b) applies,
direct, subject to such terms and conditions as he thinks fit, that the contributor’s account be kept open, but in that event the period during which the contributor’s account is kept open pursuant to this paragraph shall not be taken into account as continuous contributory service. (L.N. 239 of 1982)
(Repealed L.N. 78 of 2000)
(Repealed L.N. 162 of 1996)
Where the account of a contributor has been closed in accordance with this rule (or purportedly in accordance with this rule) and the contributor has received payment in accordance with rule 14 (or purportedly in accordance with rule 14) and has re-commenced employment in a grant school without a break in teaching service then, for the purpose of calculating the amount of the benefits payable under this rule with respect to such re-commenced employment, no account shall be taken of any period of continuous contributory service completed prior to such re-commencement of employment. (L.N. 269 of 1990)
Where a contributor is dismissed or his contract is terminated (on completion or otherwise) but his account has been kept open in accordance with this rule (or purportedly in accordance with this rule) and the contributor has received a severance payment or a long service payment, as the case may be, in accordance with the Employment Ordinance (Cap. 57) (Cap. 57) and has re-commenced employment in a subsidized school, grant school or DSS school without a break in teaching service otherwise than such break as the Permanent Secretary may approve then, for the purpose of calculating the amount of the benefits payable under this rule with respect to such re-commenced employment, no account shall be taken of any period of continuous contributory service completed prior to such re-commenced employment. (3 of 2003 s. 16)
The account of a contributor referred to in subparagraph (a) shall, for the period prior to such re-commenced employment, be treated as having been closed, and subject to paragraph (8), the amount standing to the credit of that account at the date of the relevant cessation of the contributor’s employment (fund benefit) must be paid to the contributor. (L.N. 259 of 1995; 4 of 2022 s. 24)
The portion of the fund benefit that is attributable neither to the contributor’s contributions nor to dividends declared on such contributions (specified fund benefit) must, to the extent that it is available to be reduced by an amount of a severance payment or long service payment mentioned in paragraph (7)(a)—
subject to subparagraph (b), be paid to the Government; or
if the severance payment or long service payment was paid by a DSS school—be paid to the school. (4 of 2022 s. 24)
For the purposes of paragraph (8), the extent to which a specified fund benefit is available to be reduced by an amount of a severance payment or long service payment is determined in accordance with Cap. 57. (4 of 2022 s. 24)
In applying Cap. 57 to a determination under paragraph (9) in relation to a specified fund benefit of a contributor—
the benefit is taken to be an employer-funded exempt ORS benefit (within the meaning of section 2 of Cap. 57) of the contributor;
the contributor is taken to have become entitled to the payment of the benefit because of the operation of the contributor’s contract of employment;
the reference to the employee’s final average monthly relevant income in the formula in section 2(5) of Cap. 57 is taken to be a reference to the contributor’s salary per month averaged over the period of 12 months immediately preceding the date of the relevant cessation of the contributor’s employment; and
section 31ZEA(2)(c) of Cap. 57 is to be disregarded, and accordingly, if section 31ZEA(2)(a) and (b) of Cap. 57 is satisfied in relation to the relevant employment of the contributor, then Parts VA and VB of Cap. 57 have effect in relation to the contributor with the modifications set out in Schedule 11 to Cap. 57. (4 of 2022 s. 24)
In paragraph (10)(c), the reference to the contributor’s salary—
subject to subparagraph (b), is a reference to the contributor’s basic salary, including any allowances approved for that purpose by the Permanent Secretary; or
to the extent that the relevant employment of the contributor is an employment in a DSS school—is a reference to the contributor’s salary under the contributor’s contract of employment. (4 of 2022 s. 24)
If the date of the relevant cessation of a contributor’s employment mentioned in paragraph (7) precedes the date on which the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (4 of 2022) comes into operation (transition date), then this rule as in force immediately before the transition date continues to have effect in relation to the contributor as if the amendments to this rule made by that Ordinance had not been made. (4 of 2022 s. 24)
Notwithstanding the provisions of rule 13, the account of a deceased contributor shall be kept open and the amount of any dividends, declared in accordance with the provisions of rule 12, shall be credited to the deceased’s account for a maximum period expiring on the third anniversary of the date of death of the contributor or for the period from the date of death of the contributor to the date of the grant of probate or letters of administration, as the case may be, whichever is the earlier. (L.N. 232 of 1997)
An account to which paragraph (1) applies is closed on—
the third anniversary of the date of death of the contributor; or
the date of the grant of probate or letters of administration in respect of the deceased,
whichever is the earlier. (L.N. 232 of 1997)
Where a contributor employed in a DSS school opts not to contribute to the fund under rule 7(6) after 10 years of continuous contributory service, his account shall be closed and the amount standing to the credit of his account at the date approved by the Permanent Secretary for the purpose of this rule, including all Government donations, DSS school donations and all dividends that have been declared up to and including that date, shall be paid to him in accordance with rule 14.
Where a contributor employed in a DSS school opts not to contribute to the fund under rule 7(6) after 5 years or more but less than 10 years of continuous contributory service, his account shall be closed and, in accordance with rule 14, the payment due to him as a contributor shall be an amount equal to that contributed by him up to the date approved by the Permanent Secretary for the purpose of this rule, and all dividends that have been declared on that contribution plus an amount equal to the following percentage of all Government donations, DSS school donations and all dividends that have been declared on such donations— (3 of 2003 s. 16)
50 per cent, if his continuous contributory service is less than 6 years;
60 per cent, if his continuous contributory service is not less than 6 years but less than 7 years;
70 per cent, if his continuous contributory service is not less than 7 years but less than 8 years;
80 per cent, if his continuous contributory service is not less than 8 years but less than 9 years;
90 per cent, if his continuous contributory service is not less than 9 years but less than 10 years.
Where a contributor employed in a DSS school opts not to contribute to the fund under rule 7(6) after less than 5 years of continuous contributory service, his account shall be closed and an amount equal to that contributed by him up to the date approved by the Permanent Secretary for the purpose of this rule, plus such dividends as have been declared on that contribution, shall be paid to him in accordance with rule 14.
Payments due to contributors under these rules shall be certified by the secretary and treasurer, and cheques in respect thereof and in respect of all disbursements by the fund shall be signed by the chairman and treasurer or, in the event of the chairman being absent from Hong Kong or for any reason unable to sign cheques, by the vice chairman and the treasurer. (G.N.A. 85 of 1955; L.N. 10 of 1987)
Where a contributor’s account has been closed under rule 13 or 13A, and if after notice has been published in the Gazette no lawful claim is made within 3 years from the date on which the account was closed, the amount standing to the credit of the account shall be transferred to the credit of the reserve fund. (L.N. 239 of 1982; L.N. 232 of 1997)
In working out the period of 3 years for paragraph (2), any time when the contributor is an undischarged bankrupt must be disregarded. (4 of 2013 s. 4)
Paragraph (2A) does not apply in relation to a contributor’s bankruptcy that is adjudicated before that paragraph comes into operation . (4 of 2013 s. 4)
Subject to paragraph (4), the amount of any dividend, declared in accordance with rule 12, in respect of an account which was closed under rule 13 or 13A at or after the end of any financial year (1st relevant financial year) and before the next annual general meeting of the board, shall be paid to the person entitled to payment of the sum standing to the credit of the account. (L.N. 232 of 1997)
Subject to paragraph (8), where an account to which paragraph (3) applies was opened after the last day of September of the 1st relevant financial year, then the amount of any dividend payable by virtue of paragraph (3) in respect of the account shall be reduced by an amount equivalent to the dividend divided by 365 (or 366 if that year includes a February with 29 days) and then multiplied by the total number of days of that year when that account had not been opened but excluding, if that account was opened on a day in a month of that year other than the first day of the month, the days of that month preceding the day on which that account was opened. (L.N. 232 of 1997)
Subject to paragraphs (6) and (8), the provisions of rule 12, in relation to the declaration of any dividend, shall apply to an account (relevant account) closed under rule 13 or 13A on a date (1st date) in a financial year (2nd relevant financial year) other than 31 August of that year (2nd date) as if the account, with the amount standing to its credit on the 1st date, had been so closed on the 2nd date and, accordingly, the amount of any such dividend in respect of the account shall be paid to the person entitled to payment of the sum standing to the credit of the account. (L.N. 232 of 1997)
The amount of a dividend to which paragraph (5) applies shall be reduced by an amount equivalent to the dividend divided by 365 (or 366 if the 2nd relevant financial year includes a February with 29 days) and then multiplied by the total number of days of the 2nd relevant financial year when the relevant account had either not been opened or was closed but excluding—
the 1st date; and
if that account was opened on a day in a month of that year other than the first day of the month, the days of that month preceding the day on which that account was opened. (L.N. 232 of 1997)
Subject to paragraph (8), the amount of any dividend, declared in accordance with rule 12, in respect of an account which—
has not been closed under rule 13 or 13A; but
was opened after the last day of September of a financial year,
shall be reduced by an amount equivalent to the dividend divided by 365 (or 366 if that year includes a February with 29 days) and then multiplied by the total number of days of that year when the account had not been opened but excluding, if that account was opened on a day in a month of that year other than the first day of the month, the days of that month preceding the day on which that account was opened. (L.N. 232 of 1997)
Paragraphs (4), (5) and (7) shall not apply to any financial year before the financial year beginning 1 September 1997. (L.N. 232 of 1997)
For the avoidance of doubt, it is hereby declared that—
where a contributor’s account has been closed under rule 13 or 13A, no dividend shall be carried thereto under rule 12 except in accordance with the provisions of this rule;
the period beginning the day next following the 1st date and ending the 2nd date shall not be taken into account as continuous contributory service of that contributor for any purpose;
the period for calculating under these rules the amount of any dividend, declared in accordance with rule 12, in respect of an account which was closed under rule 13 or 13A shall include the date on which the account was closed. (L.N. 232 of 1997)
The treasurer shall cause proper accounts to be kept of all transactions of the fund and shall cause to be prepared for every period of 12 months ending 31 August in each year a statement of the accounts of the fund, which statement shall include an income and expenditure account and a balance sheet and shall be signed by the chairman and the treasurer.
The accounts of the fund and the signed statement of the accounts shall be audited by an auditor appointed by the Chief Executive who shall certify the statement subject to such report, if any, as he may think fit. (55 of 2000 s. 3)
A copy of the signed and audited statement of accounts together with the auditor’s report, if any, shall be placed before the board at the annual general meeting of the board next following the expiration of the period covered by such statement, and thereafter be submitted to the Secretary for Education. (L.N. 226 of 1976; L.N. 10 of 1987; L.N. 130 of 2007)
Without prejudice to rule 15, the board shall, whenever required by the Chief Executive to do so, submit to him through the Chief Secretary for Administration a report on the operation of the fund and an audited statement of the accounts of the fund.
(L.N. 87 of 1976; L.N. 226 of 1976; L.N. 362 of 1997; 55 of 2000 s. 3)
In any case of doubt as to the interpretation or application of these rules the decision of the Administrative Appeals Board shall be final.
In any case in which a contributor commences employment in a subsidized school, without a break in teaching service otherwise than such break as the Permanent Secretary may approve, such teacher shall have the option, on application to the board, of— (L.N. 78 of 2000; 3 of 2003 s. 16)
having his account closed in accordance with rule 13 and receiving payment in accordance with rule 14; or
having his account kept open in accordance with rule 13(3); or
having his account transferred to the Subsidized Schools Provident Fund.
In any case in which a contributory teacher’s employment in a subsidized school or DSS school is terminated and his account in the Subsidized Schools Provident Fund is transferred to the Grant Schools Provident Fund the treasurer shall open a contributor’s account in the Grant Schools Provident Fund in such teacher’s name and shall credit thereto the account so transferred; and such teacher shall for all purposes thereafter be deemed to have been a contributor to the Grant Schools Provident Fund with effect from the commencement of his continuous contributory service within the meaning of the Subsidized Schools Provident Fund Rules (Cap. 279 sub. leg. D). (L.N. 78 of 2000)
In any case in which a contributor employed in a grant school or DSS school terminates his employment in the grant school or DSS school and commences employment in another school which is a grant school, without a break in teaching service otherwise than such break as the Permanent Secretary may approve, the contributor shall have the option of— (3 of 2003 s. 16)
having his account closed in accordance with rule 13 and receiving payment in accordance with rule 14; or
continuing to contribute to the fund under these rules without closing his account. (L.N. 78 of 2000)
(Repealed L.N. 78 of 2000)