Subsidized Schools Provident Fund Rules
[29 September 1961]
(Format changes—E.R. 2 of 2024)
| 1. | For the saving and transitional provisions relating to the amendments made by the Education Reorganization (Miscellaneous Amendments) Ordinance 2003 (3 of 2003), please see Part 3 of that Ordinance. | |
| 2. | These rules were made under section 53 of the repealed Education Ordinance (Cap. 279, 1964 Ed.) and, by virtue of section 36(1) of the Interpretation and General Clauses Ordinance (Cap. 1), continue to have the like effect as if they had been made under section 85 of the new Education Ordinance (enacted in 1971). | |
These rules may be cited as the Subsidized Schools Provident Fund Rules.
In these rules, unless the context otherwise requires— (L.N. 79 of 2000)
account (帳目), in relation to a contributor, means an account maintained for the contributor under rule 8(3); (L.N. 79 of 2000) Board (委員會) means the board of control established in accordance with the provisions of rule 5; 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 (3 of 2003 s. 17) (b)has not closed his account in that Fund or that other fund at any time, and includes— (i)study leave, sick leave or maternity leave approved by the Permanent Secretary; and (3 of 2003 s. 17) (ii)any service—(A)at 2 or more subsidized schools;(B)at 1 or more subsidized schools and at 1 or more grant schools;(C)at 1 or more subsidized schools and at 1 or more DSS schools; or(D)at 1 or more subsidized schools and at 1 or more grant 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. 79 of 2000; 3 of 2003 s. 17) contract (合約), in relation to a contributor, means a fixed term contract under which the contributor is employed; (L.N. 88 of 1976) contributor (供款人) means a person who contributes to the Fund; donation (贈款) means the Government donation referred to in rule 9; Fund (基金) means the provident fund established in accordance with the provisions of rule 3; Grant Code (補助則例) and grant school (補助學校) have the meanings ascribed thereto in the Grant Schools Provident Fund Rules (Cap. 279 sub. leg. C); (L.N. 88 of 1976) Grant Schools Provident Fund (補助學校公積金) means the provident fund maintained in accordance with the provisions of the Grant Schools Provident Fund Rules (Cap. 279 sub. leg. C); Hong Kong Special Schools Council (香港特殊學校議會) means that body of persons composed of representatives of the subsidized special schools recognized by the Permanent Secretary; (L.N. 260 of 1995; 3 of 2003 s. 17) secretary (秘書) means the person for the time being appointed in accordance with rule 5 to be secretary to the Board; Subsidized Primary Schools Council (津貼小學議會) means that body of persons composed of representatives of the subsidized primary schools recognized by the Permanent Secretary; (L.N. 88 of 1976; L.N. 260 of 1995; 3 of 2003 s. 17) subsidized school (津貼學校) means— (a)any secondary school which receives subsidies in accordance with the code of aid for secondary schools and—(i)was, before 1 April 1973, in receipt of subsidies in accordance with the Subsidy Code; or(ii)was not, before that date, in receipt of subsidies under the Subsidy Code or of grants under the Grant Code; (b)any primary school which receives subsidies in accordance with the code of aid for primary schools and—(i)was, before 1 April 1975, in receipt of subsidies in accordance with the Subsidy Code; or(ii)was not, before that date, in receipt of subsidies under the Subsidy Code or of grants under the Grant Code; and (c)any special school which receives subsidies in accordance with the Subsidy Code; (L.N. 88 of 1976) Subsidized Secondary Schools Council (津貼中學議會) means that body of persons composed of representatives of the subsidized secondary schools recognized by the Permanent Secretary; (L.N. 88 of 1976; 3 of 2003 s. 17) Subsidy Code (津貼則例) means— (a)in relation to secondary schools, the code under the terms of which, before 1 April 1973, the Government gave subsidies to certain secondary schools; (b)in relation to primary schools, the code under the terms of which, before 1 April 1975, the Government gave subsidies to certain primary schools; and (c)in relation to special schools, practical schools and skills opportunity schools, the code under the terms of which the Government gives subsidies to certain special schools, practical schools or skills opportunity schools; (L.N. 88 of 1976; L.N. 260 of 1995) treasurer (司庫) means the person for the time being appointed in accordance with rule 5 to be treasurer of the Fund; 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. 79 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. 79 of 2000)
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.
The object of the Fund is to provide, subject to the provisions of these rules, for payments to be made upon resignation, retirement, dismissal or termination of contract to teachers employed in subsidized schools and teachers employed in DSS schools who are contributors, or to their estates in case of death.
The Fund shall be controlled, subject to the provisions of these rules, by a board of control consisting of the following members— (L.N. 88 of 1976)
a Chairman, who shall be elected from among the 18 members referred to in subparagraph (e): Provided that if one of the 9 members appointed under subparagraph (e)(i) to (iii) is elected as Vice-Chairman, one of the 9 members elected under subparagraph (e)(iv) to (vi) shall be elected as Chairman; (L.N. 260 of 1995)
a Vice-Chairman, who shall be elected from among the 18 members referred to in subparagraph (e): Provided that if one of the 9 members appointed under subparagraph (e)(i) to (iii) is elected as Chairman, one of the 9 members elected under subparagraph (e)(iv) to (vi) shall be elected as Vice-Chairman; (L.N. 260 of 1995)
the Permanent Secretary or his representative; (L.N. 260 of 1995; 3 of 2003 s. 17)
the Director of Accounting Services or his representative; (L.N. 260 of 1995)
18 other members (including the Chairman and Vice-Chairman) who shall be contributors, of whom—
4 shall be appointed by the Subsidized Primary Schools Council;
4 shall be appointed by the Subsidized Secondary Schools Council;
1 shall be appointed by the Hong Kong Special Schools Council;
4 shall be elected from the representatives of teachers of the subsidized primary schools;
4 shall be elected from the representatives of teachers of the subsidized secondary schools; and
1 shall be elected from the representatives of teachers of the special schools. (L.N. 260 of 1995)
Subject to paragraph (2A), members of the Board referred to in paragraph (1)(e), shall, in the case of appointed members, be appointed for such term of office, not exceeding 2 years, as the Subsidized Primary Schools Council, the Subsidized Secondary Schools Council or the Hong Kong Special Schools Council, as the case may be, may determine, or shall, in the case of elected members be elected for a term of office of 2 years, and shall—
in the case of members appointed under paragraph (1)(e)(i) to (iii), be subject to dismissal from office at any time by the direction of the Subsidized Primary Schools Council, the Subsidized Secondary Schools Council or the Hong Kong Special Schools Council, as the case may be;
be eligible for reappointment or re-election, to office on the expiration of any term of office;
cease to be members upon their ceasing to be contributors. (L.N. 260 of 1995)
Notwithstanding paragraph (2) but subject to paragraph (2C), both the Chairman and the Vice-Chairman shall be elected for a term of office of 2 years, after the expiration of which term the Chairman and the Vice-Chairman shall not be eligible for re-election to a further term of either office. (L.N. 260 of 1995)
If the Chairman resigns or is dismissed from his office during his term of office, the Vice-Chairman shall take up the chairmanship in his place for the remaining part of that term of office. (L.N. 260 of 1995)
If the Vice-Chairman resigns or is dismissed from his office during his term of office, or is required to take up the chairmanship under paragraph (2B), a new Vice-Chairman shall be elected in accordance with paragraph (1)(b) and serve the remaining part of that term of office. (L.N. 260 of 1995)
Any person authorized by the Permanent Secretary shall act as the secretary to the Board. (L.N. 260 of 1995; 3 of 2003 s. 17)
The Director of Accounting Services shall appoint a treasurer of the Fund who shall not sit as a member of the Board unless so directed by the Director of Accounting Services to represent him on the Board.
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. 163 of 1996)
Subject to paragraph (1A), the Board shall meet at such times and in such places as the Chairman may determine. (L.N. 88 of 1976)
An annual general meeting of the members of the Board shall be held not later than 31 August in each year. (L.N. 88 of 1976)
At any meeting of the Board 14 members shall constitute a quorum. (L.N. 88 of 1976; L.N. 260 of 1995)
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.
The Chairman, or Vice-Chairman in the absence of the Chairman, shall preside at any meeting of the Board and shall have an original vote and also, if upon any question the votes shall be equally divided, a casting vote.
The proceedings at any meeting of the Board shall be recorded in the form of minutes maintained by the secretary and entered in a book maintained by the Board for that purpose.
The Board may make standing orders for regulating the procedure to be adopted at its meetings or otherwise in connexion with the conduct of its business.
Every teacher approved for the purposes of the Subsidy Code or the code of aid for secondary, primary or special schools and employed in a subsidized school (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. 88 of 1976; L.N. 240 of 1982; L.N. 304 of 1982; L.N. 260 of 1995; L.N. 163 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 Grant 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 subsidized school, is over the age of 55 years: (L.N. 163 of 1996) Provided that— (i)the provisions of this subparagraph shall not apply in the case of any such teacher who, at the time of first appointment to a subsidized school, is in continuous contributory service by reason of making contribution to the Grant Schools Provident Fund; and (ii)any such teacher who, at the time of first appointment to a subsidized school, is in continuous contributory service otherwise than by reason of making contribution to the Grant 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. 17)
(Repealed L.N. 163 of 1996)
Any option exercised pursuant to the provisions of paragraph (1) may be exercised at any time, but shall— (L.N. 240 of 1982; L.N. 163 of 1996)
be irrevocable; and
not be exercised with retrospective effect otherwise than—
to the date of first appointment in a subsidized school; or
for a period of 3 months,
whichever is the less.
(Repealed L.N. 163 of 1996)
Any question arising as to whether, for the purposes 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. 17)
Where a subsidized school ceases to be a subsidized school and becomes a DSS school, a contributor employed in the subsidized school who commences employment in the DSS school as a teacher may, subject to rule 7A, contribute to the Fund. (L.N. 79 of 2000)
A contributor employed in a DSS school may opt not to contribute to the Fund at any time within 5 years after the school has become a DSS school. (L.N. 79 of 2000)
A contributor employed in a DSS school who has exercised the option under paragraph (5) is not entitled to contribute to the Fund when he is employed in the DSS school. (L.N. 79 of 2000)
Where a subsidized school ceases to be a subsidized school and becomes a DSS school, a contributor employed in the subsidized 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 for a maximum period of 5 years immediately after the school has become a DSS school.
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.
Contribution to the Fund by a contributor employed in a subsidized 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 only be payable in respect of periods during which the contributor draws his basic salary. (L.N. 88 of 1976; L.N. 79 of 2000; 3 of 2003 s. 17)
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. 79 of 2000; 3 of 2003 s. 17)
Subject to paragraph (2A), contributions shall be deducted from each contributor’s salary monthly by the management authority of the school who shall within 7 days thereafter pay to the treasurer the amount of such deduction. (L.N. 240 of 1982)
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. 240 of 1982; 3 of 2003 s. 17)
It shall be the duty of the management authority of every school to maintain a separate account for each contributor employed in the school and every such account shall specify— (L.N. 79 of 2000; 27 of 2004 s. 70)
all contributions paid thereto;
all donations made by Government thereto under rule 9; (L.N. 79 of 2000)
all donations made by the school thereto under rule 9A (if applicable); and (L.N. 79 of 2000)
such other credits as may from time to time be communicated to the management authority by the treasurer.
The total of each contributor’s account as maintained by the management authority shall be reconciled annually with the treasurer.
On application to the management authority, every contributor shall be entitled to inspect at any reasonable time the account standing in his name.
For each contribution by a contributor employed in a subsidized school, Government shall pay to the Fund a sum referred to in these rules as a Government donation. (L.N. 79 of 2000)
A Government donation shall be paid to the Fund each month when the contribution by a contributor employed in a subsidized 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. 79 of 2000; 3 of 2003 s. 17)
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. 79 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 Subsidized Schools Provident Fund (Amendment) Rules 1982 (L.N. 240 of 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 Subsidized Schools Provident Fund (Amendment) Rules 1985 (L.N. 88 of 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. 88 of 1985; 3 of 2003 s. 17)
Where the account of a contributor (whether or not employed in a subsidized 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 subsidized 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. 270 of 1990; L.N. 79 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; (L.N. 163 of 1996)
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. 163 of 1996; L.N. 79 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. 163 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. 163 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. 163 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 subsidized school or DSS school (as the case may be) for any of the following reasons— (L.N. 79 of 2000)
after 10 years of continuous contributory service— (E.R. 2 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 subsidized 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. 79 of 2000)
(in the case of a subsidized school) upon the school ceasing to be a subsidized school; (L.N. 79 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 subsidized school; (L.N. 79 of 2000)
death,
then, subject to paragraph (3) and rules 7A, 13A and 15, 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. 260 of 1995; L.N. 79 of 2000)
Without prejudice to paragraph (1)(b), (c), (ca) and (d), whenever a contributor ceases to be employed as a teacher in a subsidized 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. 79 of 2000; E.R. 2 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 rule 15, 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. 79 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. 240 of 1982)
Without prejudice to paragraph (1)(b), (c), (ca) and (d), whenever a contributor ceases to be employed as a teacher in a subsidized school or DSS school (as the case may be)— (L.N. 79 of 2000)
after less than 5 years of continuous contributory service; or (E.R. 2 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 rule 15, 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. 240 of 1982; L.N. 79 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. 17)
where, after 10 years of continuous contributory service, the contributor is compulsorily retired; or (E.R. 2 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. 240 of 1982)
(Repealed L.N. 79 of 2000)
(Repealed L.N. 163 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 subsidized 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. 270 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 or a grant 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 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. 17)
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. 260 of 1995; 4 of 2022 s. 25)
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. 25)
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. 25)
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. 25)
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. 25)
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. 25)
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. 233 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. 233 of 1997)
A contributor employed in a DSS school shall cease to contribute to the Fund at the expiry of 5 years after the school has become a DSS school.
Where the expiry referred to in paragraph (1) occurs—
after the contributor has attained 10 years of continuous contributory service, his account shall be closed and the amount standing to the credit of his account at the date of the expiry, 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;
after the contributor has attained 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 of the expiry, 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—
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;
after the contributor has attained 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 of the expiry, plus such dividends as have been declared on that contribution, 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(5)—
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;
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. 17)
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;
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. (3 of 2003 s. 17)
Payments due to contributors in accordance with these rules shall be certified by the secretary and by the treasurer; and cheques drawn in respect thereof, and in respect of any other disbursements from the Fund, shall be signed by the Chairman of the Board and by the treasurer or, if the Chairman is absent from Hong Kong or for other reason is unable to sign, by the Vice-Chairman and by the treasurer. (L.N. 11 of 1987)
Where a contributor’s account has been closed in accordance with rule 13 or 13A, and if after notice has been published in the Gazette no lawful claim is made within 3 years after 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. 240 of 1982; L.N. 233 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. 5)
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. 5)
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. 233 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. 233 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. 233 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. 233 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. 233 of 1997)
Paragraphs (4), (5) and (7) shall not apply to any financial year before the financial year beginning 1 September 1997. (L.N. 233 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. 233 of 1997)
In any case in which a contributor commences employment in a grant 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. 79 of 2000; 3 of 2003 s. 17)
having his account closed in accordance with the provisions of rule 13 and receiving payment in accordance with the provisions of rule 14; or
having his account kept open in accordance with the provisions of rule 13(3); or
having his account transferred to the Grant Schools Provident Fund.
In any case in which a contributory teacher’s employment in a grant school or DSS school is terminated and his account in the Grant Schools Provident Fund is transferred to the Subsidized Schools Provident Fund, the treasurer shall open a contributor’s account in the Subsidized 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 Subsidized Schools Provident Fund with effect from the commencement of his continuous contributory service within the meaning of the Grant Schools Provident Fund Rules (Cap. 279 sub. leg. C). (L.N. 79 of 2000)
In any case in which a contributor employed in a subsidized school or DSS school terminates his employment in the subsidized school or DSS school and commences employment in another school which is a subsidized 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. 17)
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. 79 of 2000)
(Repealed L.N. 79 of 2000)
The treasurer shall, with the assistance of such persons as the Director of Accounting Services may require, cause proper accounts to be kept of all transactions of the Fund including a separate account for each contributor, 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 shall thereafter be submitted to the Secretary for Education. (L.N. 226 of 1976; L.N. 11 of 1987; L.N. 130 of 2007)
Notwithstanding any of the provisions of rule 16, whenever so required by the Chief Executive the Board shall submit to him through the Chief Secretary for Administration a report upon the operation of the Fund and an audited statement of the accounts of the Fund.
Any dispute arising under these rules shall be determined by the Board:
Provided that any person who considers himself aggrieved by any decision of the Board may within 28 days from the date when he was informed of the decision, appeal to the Administrative Appeals Board.