Wow, I didn't know about that "feature" of the MPF in Hong Kong.

It would seem that employees are being screwed twice.

That MPF is already a "Defined Contribution Pension Scheme". The previous pension schemes were "Defined Benefit Pension Scheme". Governements and Employees had realised that the defined benefit scheme cost them a lot more (a fixed amount to be paid each month to the retiree till death).

Under the defined contribution scheme, once all the contributions had been made, upon retirement the employer no longer have any responsibility (ie no further financial liability). The employee is left to hope that the amount in his account is sufficient to last from the date of his retirement till the end of his life.

Now that the employer's contributions can be retrospectively taken back and treated as severance pay is a totally unfair and double whammy. My sympathies to our Hong Kong working brothers. When the hard times (economic crises) next come round, there will be more riots.