Deferred Payment Arrangement under the Staff Superannuation Scheme 1995 (S1995)
- Under 1995 Scheme, a member retiring or leaving the University will be paid out of the scheme a cash sum which represents his/her scheme benefit balance accrued up to and calculated as at his/her departure date.
- A “Deferred Payment Arrangement” (DPA) was initially set up on 1 July 2009 in 1995 Scheme as a special arrangement for 5 years to deal with the then extraordinary impact caused by the unprecedented global financial crisis. It allows retiring members a flexibility to defer scheme benefits withdrawal until the market stabilizes or rebounds.
- The DPA was reviewed in 2011, 2017 and 2022. While both the University and scheme trustees agreed that DPA allows retiring members the flexibility to defer withdrawal of benefits and arrange retirement investment that fit for their own circumstances, the reliance on DPA to continue their retirement investment in 1995 Scheme should be gradually reduced. It is therefore decided that DPA will be further extended to 30 June 2029 and takers during this period can continue to leave their benefits invested in 1995 Scheme for a maximum of 3 years from the date of retirement or until the expiry date of DPA, whichever is earlier.
- In brief, a scheme member who will leave University service at or after the age of 55 will be offered DPA in writing through Payroll and Superannuation Unit of Finance Office nearer their departure date. During the deferment period, the leaving member may switch his/her investment options in the same manner as serving members. The applicable deferment years and administration fees are:
Date taking up DPO Maximum year of Deferment Monthly administration fee (HK$) (subject to revision) Before 1 July 2019 5 years $60 (before 1.7.2019)
$100 ( on/after 1.7.2019)
On/after 1 July 2019 3 years $100 (before 1.7.2024)
$150 ( on/after 1.7.2024)
- For enquiry, please contact the Payroll and Superannuation Unit (email: cuhks95@cuhk.edu.hk ; phone: 3943-7283 / 3943-1556).
