4. Expected loss levy
(1) This section applies to any year after the year in which the target fund size has been reached for the first time after the commencement of this Schedule, except a year to which section 3 applies by virtue of subsection (2) or (3) of that section.
(2) An expected loss levy is payable by a Scheme member for any year to which this section applies.
(3) Subject to section 6, the amount of expected loss levy payable by a Scheme member for any year is the sum calculated by multiplying the amount of relevant deposits maintained with the Scheme member as at 20 October of the immediately preceding year by the percentage specified in column 2 of the following Table opposite the MA supervisory rating of the Scheme member specified in column 1 of that Table.
| Column 1 | Column 2 |
| MA supervisory rating | Percentage |
| 1 | 0.0075% |
| 2 | 0.01% |
| 3 | 0.015% |
| 4 or 5 | 0.02% |
(4) For the avoidance of doubt, the percentage specified in column 2 of the Table in subsection (3) may be revised by way of an amendment to this section before, during or after the year in which the target fund size is reached for the first time after the commencement of this Schedule.
5. Surcharge
(1) This section applies to any year—
- (a) to which section 4 applies; and
- (b) 70% of the target fund size for which is greater than the balance of the Fund as at 20 October of the immediately preceding year.
(2) A surcharge is payable by a Scheme member for any year to which this section applies.
(3) Subject to section 6, the amount of surcharge payable by a Scheme member for any year is a specified portion of the amount of build-up levy that would have been payable by the Scheme member for that year in accordance with section 3(5) as if section 3 applied to that year.
(4) The aggregate amount of surcharges payable by all Scheme members for any year is—
- (a) the difference between—
- (i) the aggregate amount of build-up levies that would have been payable by all Scheme members for that year in accordance with section 3(5) as if section 3 applied to that year; and
- (ii) the aggregate amount of expected loss levies payable by all Scheme members for that year in accordance with section 4(3); or
- (b) 30% of the amount by which the target fund size for that year exceeds the balance of the Fund as at 20 October of the immediately preceding year,
whichever is the lower.
(5) In this section, “specified portion” (指明部分), in relation to the amount of build up levy that would have been payable for a year, means the portion that the aggregate amount of surcharges payable by all Scheme members for that year, calculated in accordance with subsection (4), bears to the aggregate amount of build-up levies that would have been payable by all Scheme members for that year, calculated in accordance with subsection (4)(a)(i).
