I am pleased to be back before the committee to answer any additional questions that members may have about Sun Life's role as an MPF trustee in the early MPF withdrawal application process.
As a reminder, the Hong Kong mandatory provident fund system is a retirement savings program intended to support those over the age of 65 with financial security in their later years. This system is similar to various mandatory retirement programs around the world. This means that money is released to the participants at retirement age, or, in rare circumstances, when someone meets the criteria for early unlocking. Those criteria are set by the relevant regulator and can include permanent departure or terminal illness.
I want to begin by again reassuring the committee that Sun Life does not decline applications for early withdrawal of MPF funds from Canadian permanent residents or Canadian citizens who have permanently left Hong Kong. This is true regardless of what passport they used to enter Canada before receiving their permanent residency or Canadian citizenship status.
As I will outline in my remarks, Sun Life has accepted 97.5% of all applications we received for early MPF withdrawal due to permanent departure between January 2021 and March 2024.
I would like to clearly outline the data points that I provided both during my previous testimony and also in writing to the committee in June 2024.
Between January 2021 and March 2024, Sun Life received a total of 14,590 applications from clients wishing to withdraw their MPF funds due to permanent departure from Hong Kong. Of these applications, a total of 14,238 were approved by both Sun Life and the Hong Kong regulator, the MPFA. The remaining 352 applications were declined either by Sun Life due to errors on applications or the applicant not meeting the criteria, or by the Hong Kong regulator due to the applicant having previously received a payout under the early departure process, making them ineligible to access funds through this stream again.
Allow me to break this down further. Of the 352 declined applications, 180 were declined by Sun Life due to errors on forms or clients not meeting the withdrawal criteria. This type of review process is part of normal due diligence procedures in all markets in which we operate to ensure program integrity. The remaining 172 applications were approved by Sun Life but declined by the regulator.
I would also like to stress that Sun Life must abide by the rules and regulations of every jurisdiction in which we operate. With regard to the criteria for early withdrawal due to permanent departure, those rules are set by the Hong Kong regulator, the MPFA. With respect to the steps required to obtain permanent residency in Canada and how long processing that permanent residency status takes, that is the purview of Immigration, Refugees and Citizenship Canada.
At Sun Life, our purpose is to help our clients achieve lifetime financial security and live healthier lives. In any jurisdiction where we operate, whether in Canada, in the United States or in Hong Kong, Sun Life has focused on meeting the needs of our clients. Each market and each client has distinct needs, and we tailor our approach to best support them. We also ensure that we are compliant with the specific laws and regulations of each of those markets, which enables us to serve our clients to the best of our ability. These principles are true for Hong Kong and for early MPF withdrawal requests by clients who have permanently left Hong Kong.
Maintaining the trust that our clients have in us in overseeing some of their most important financial savings is of vital importance to us. We continue to be committed to working with our clients during the application process, ensuring that any errors on applications are quickly addressed and providing guidance to them in reapplying when appropriate. We have resources available to all of our clients wishing to withdraw their MPF funds due to early departure publicly available on our website, including a direct line to contact our dedicated Sun Life MPF experts.
Thank you again for inviting me here today. I look forward to answering your questions.