Publicity campaign on Hong Kong MPF pension reform aims to aid understanding

PUBLISHED : Monday, 10 April, 2017, 4:44pm
UPDATED : Monday, 10 April, 2017, 10:32pm

I refer to the letter from Venkitaraman Krishnan (“Constant stream of MPF material will leave layman puzzled”, March 30).

The Default Investment Strategy is a major reform of the Mandatory Provident Fund (MPF) system and affects all 9.3 million MPF accounts. It is necessary for MPF trustees to send notices to all account holders to inform them of the new initiative and to explain in detail its legislative impact to help them make informed decisions about their MPF investment.

The Mandatory Provident Fund Schemes Authority (MPFA) is well aware of the complexity of the subject and has produced a range of publicity and educational material to help MPF scheme members get a good understanding of the new default strategy. The material ranges from simple flyers to an in-depth dedicated website, from a 30-second TV announcement in the public interest to a two-minute infographic video.

The authority has also conducted some 150 briefings to different groups in the community and more have been scheduled.

Following the launch of the Default Investment Strategy on April 1, the next target is to put in place eMPF, a centralised electronic platform to facilitate the standardisation, streamlining and automation of the MPF scheme administration. It is hoped that this will greatly enhance the efficiency of the MPF system, substantially reduce paperwork and improve user experience.

While the MPFA will continue to improve the MPF system, we would like to call on all scheme members to spend some time to read the information provided by the trustees and manage their MPF accounts.

We would also like to call on all employers and scheme members to go electronic and make good use of the electronic services and platforms provided by the trustees.

The MPF is an important part of retirement savings for the working population. It is time for scheme members to take control of their MPF and for all parties to work together to make the MPF system as efficient as possible.

Cheng Yan-chee, chief corporate affairs officer and executive director, Mandatory Provident Fund Schemes Authority