Good morning.

It is good to see you again and an honour, as always, to appear before this parliamentary committee. I appreciate having another opportunity to discuss Manulife's pension business, and I'll be happy to try to answer any questions you may have.

Manulife has been a proudly Canadian company since its founding 137 years ago. Today we provide financial services to 35 million customers around the world, including seven million Canadians. At Manulife, we are proud of our Canadian heritage. We also support and encourage Canada's ongoing presence in the Indo-Pacific, an important region with the largest population in the world, one where Manulife has had a presence for 125 years.

The international success of Canada's financial services sector injects billions of dollars into the Canadian economy and powers tens of thousands of high-quality Canadian jobs. Financial services are among the country's most important exports, growing at an average of 7.4% a year over the last five years, according to the Conference Board of Canada.

Manulife has been providing financial services in Hong Kong since 1898. We currently have more than 2.5 million customers and approximately 2,500 employees there.

Almost all pension systems, including those in Canada and the United States, put restrictions in place to prevent individuals from accessing their pension savings before reaching retirement age. In Canada and elsewhere, these restrictions exist to ensure that the funds saved for retirement are available during retirement. The pension system in Hong Kong is known as the mandatory provident fund, or MPF. Currently, there are 12 MPF trustees, including Manulife, who offer MPF plans to about 4.7 million members through approximately 360,000 participating employers.

The pension laws in Hong Kong enacted in 1995 allow for pensions to be withdrawn prior to the age of 65 only in specific circumstances, including early retirement after the age of 60, permanent departure from Hong Kong, total incapacity, terminal illness, small balance or death.

These restrictions are very similar to the provincial laws that exist in Canada. In Canada, however, if someone wishes to make an early withdrawal from their pension on departure grounds, they must prove that they have been gone for at least two years, and there is a tax penalty imposed by Canada for doing so. This is not a requirement for those entering Canada from Hong Kong. Those who can provide proof of permanent residence in Canada can access their pension immediately, provided they meet the remaining eligibility criteria.

It is also important to remember that when somebody is deemed ineligible for early withdrawal, their pension funds remain in place and available upon retirement.

We have updated our available data since the last time we met with this committee. From January 2021 to the end of September 2024, Manulife received 5,720 requests from customers requesting that their pension funds be unlocked for reasons of permanent departure from Hong Kong to Canada. Manulife was able to process applications on the grounds of permanent departure for 4,533 applicants who moved to Canada. We were unable to process applications from 1,087 customers for a variety of reasons, including lack of sufficient documentation, forms that were filled out incorrectly or information indicating that the applicant had already unlocked an MPF pension before.

In offering life insurance and pension products, Manulife makes a long-term commitment to our customers for their financial security. We abide by our contracts in accordance with relevant laws. Our commitments span decades, and our responsibility to honour our obligations to our customers has been at the core of our business for 137 years. We are proud that 35 million customers around the world have chosen Manulife to help them save for retirement and to protect their families with life and health insurance.

Thank you very much. I would be happy to try to answer your questions.