• Thu
  • Dec 18, 2014
  • Updated: 4:59pm

MPF

The Mandatory Provident Fund (MPF) is a compulsory pension fund designed by the Hong Kong government as a major protection scheme for the aged and retired residents.  Most employees and their employers are required to contribute monthly. 

MPFA proposes fee cap on pension funds

Anna Wu Hung-yuk, chairwoman of the Mandatory Provident Fund Schemes Authority.

All Mandatory Provident Fund schemes must introduce a low-fee core fund from 2016 for employees who do not know which fund to choose for their pension contributions.

Wednesday, 25 June, 2014, 2:37am

John Tsang cautious over changes to mandatory provident fund scheme

John Tsang cautious over changes to mandatory provident fund scheme

Hong Kong's mandatory provident fund scheme should not be hastily done away with, the financial secretary says, although he concedes the system has failed to give low-paid workers and the unemployed enough retirement protection.

26 May 2014 - 7:42am 14 comments

Global economic recovery points to year-end MPF gains, say analysts

The 448 funds in Hong Kong's employee retirement scheme fell on average 0.1 per cent, according to mutual fund watcher Lipper. Photo: AFP

A global economic recovery means pension-fund savers in Hong Kong can expect end-of-year gains in their equity holdings despite lacklustre performance by the Mandatory Provident Fund last month, said analysts.

6 May 2014 - 12:42am

Making a case for Hong Kong's pension fund

The MPF may have its faults, but the city needs the safety net.

Shareholder activist David Webb wrote an excellently funny piece on the Mandatory Provident Fund (MPF) recently, mocking the government leaflet which announces increased contributions to the compulsory retirement savings system.

2 May 2014 - 1:25am 1 comment

Proposed changes to MPF ordinance set to benefit more retirees

Elderly may soon be allowed to draw out money in their Mandatory Provident Fund up to four times a year.

Retirees on the MPF scheme may soon be able to withdraw their money in instalments up to four times a year, the MPF Schemes Authority said yesterday, instead of having to take the full amount on retirement.

26 Apr 2014 - 8:12am 2 comments

MPF reports average loss as analysts forecast more of the same

Critics complain MPF imposes high fees for modest performance. Photo: K. Y. Cheng

The Mandatory Provident Fund covering 2.4 million employees in the city reported poor investment results last month, with almost all categories of funds suffering a loss as a result of weak stock markets worldwide.

4 Apr 2014 - 11:27am 4 comments

Lobbyists work to change pension rule that has cost workers HK$20b

Many people on low wages have complained that the MPF offset leaves them little cash for their retirement. Photo: SCMP

Legislators and unionists pressed government officials yesterday to scrap or lower the controversial offset provision in the Mandatory Provident Fund pension scheme which has allowed companies to save more than HK$20 billion in the past 13 years at the expense of employees' retirement savings.

19 Mar 2014 - 1:26am

Employers fight move to abolish MPF offset provision

Sin Chung-kai

Employers are lobbying forcefully against the call by some lawmakers to abolish the offset provision in the Mandatory Provident Fund pension scheme which has saved companies more than HK$20 billion in the past 13 years, with critics of the offset saying it does not benefit ordinary employees.

17 Mar 2014 - 2:51am

Pension fund scheme heads for shake-up

The MPFA expects a low-cost option to be popular. Photo: May Tse

For those frustrated by the high fees, limited choices and the paperwork of the government-mandated pension plan, relief may be in sight. The main regulator overseeing the Mandatory Provident Fund scheme is about to launch a public consultation that could radically change the plan.

17 Mar 2014 - 2:52am

Options limited in cutting pension fund charges in Hong Kong

Options limited in cutting pension fund charges in Hong Kong

The issue of Mandatory Provident Fund charges has long been contentious amid complaints that captive savers are being milked by fund management and fund administration companies.

17 Mar 2014 - 6:37pm

MPF no substitute for pensions, says consultant Nelson Chow

Professor Nelson Chow Wing-sun

Hong Kong's mandatory retirement contribution scheme is no substitute for pensions, says a former advocate of the Mandatory Provident Fund.

24 Feb 2014 - 4:45am

MPF 'scandal' of overcharging deserves scrutiny by SFC

MPF 'scandal' deserves scrutiny by SFC.

A price war is looming among Mandatory Provident Fund providers after Haitong International became the first fund house to waive investment management fees.

SCMP, February 11

13 Feb 2014 - 1:24am 8 comments

Haitong's lower fees a small step in right direction for retirement fund

Lin Yong, CEO of Haitong International. Haitong announced to waive MPF investment management fees for three years. Photo: Bloomberg

Among the many flaws of the Mandatory Provident Fund that critics have pointed out, the one that is the most detrimental to retirement savings is the high fees and charges that funds levy on customers. At the current market average of 1.71 per cent, such charges amount to an astronomical cost over the course of a working life. 

12 Feb 2014 - 7:30am

'Zero fees' pledge to spark MPF price war

Protestors voice their discontent over the Mandatory Provident Fund Schemes as Chief Executive Leung Chun-ying gives his second policy address at Legislative Council. Photo: Sam Tsang

A price war is looming among Mandatory Provident Fund providers after Haitong International became the first fund house to waive investment management fees.

The company has announced it will waive the charges for the next three years. Employees will still have to pay trustee and administrative fees, but they will be reduced.

11 Feb 2014 - 1:28am 2 comments

MPF loses money in January with forecasts for tough year ahead

MPF reported an average loss of 2.43 per cent last month, but still managed to beat the Hang Seng Index, which fell 5.45 per cent during the month.

The city's Mandatory Provident Fund reported an average loss of 2.43 per cent last month on sliding regional stocks and currencies, according to data provider Lipper.

6 Feb 2014 - 9:37am