Hong Kong’s pension fund authority working towards centralised administration
I refer to Jake van der Kamp’s column (“High time for us to set up a simpler, less costly pension scheme”, August 10) and the letter by Paul Smith (“Hong Kong’s pension fund service providers benefit most, not the clients”, August 14).
We agree that the Mandatory Provident Fund (MPF) system needs to be more cost efficient. In the past, we have worked with the industry to standardise and streamline scheme administrative processes and procedures, and proposed legislative amendments to do away with some required documents. We have also set up electronic platforms to facilitate the transfer process. The aim is to improve operational efficiency of the MPF system.
But we know these measures have not gone far enough and central administration, as van der Kamp and Mr Smith suggested, should be the way forward. It is in fact something we are already working on.
We have indeed embarked on the development of a centralised electronic platform, or eMPF, to facilitate standardisation, streamlining and automation of MPF scheme administration.
The government also announced in the 2017 policy address that it will render full support to this initiative.
When implemented, the eMPF will not only increase the operational efficiency and lower the operating costs of the MPF system, but also make the system much more user friendly. Scheme members and employers should be able to handle their MPF matters with just a few clicks.
The development of the eMPF is no simple task. Nor can it be built overnight. Just like many Hong Kong citizens, we look forward to its early introduction.
Cheng Yan-chee, chief corporate affairs officer and executive director, Mandatory Provident Fund Schemes Authority