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. A 2012 study by the Consumer Council shows that almost half of the MPF funds have posted losses in each of the past five years.
Everyone knows about the Mandatory Provident Fund's shortcomings, yet no one seems to have a clear idea how to reform it. Among its most glaring flaws, at least if you are an employee and not a boss, is the so-called offsetting mechanism.Saturday, 25 January, 2014, 4:10am 1 comment
Speculation that Chief Executive Leung Chun-ying was planning to abolish the much criticised offsetting mechanism in the Mandatory Provident Fund was a "misunderstanding," the city's leader said ...
SCMP, January 1821 Jan 2014 - 12:33am 2 comments
A fund manager friend calls it the Mandatory Poverty Fund. Most of us call the MPF by its more polite name. But my friend has a point. The way the quasi-pension fund is run now, you are guaranteed a life of penury if you have to live on it after retirement.18 Jan 2014 - 12:36am 5 comments
Yuan-based MPF funds are catching on among Hongkongers even as they underperform other categories.19 Nov 2013 - 2:57am
Investment funds in the Mandatory Provident Fund scheme, which covers 2.4 million employees in the city, continued its good run last month, beating the Hang Seng Index.6 Nov 2013 - 5:33am
The Mandatory Provident Fund, the retirement scheme that covers 2.4 million people in Hong Kong, reported a 0.56 per cent loss in the first half of the year, worse than putting money in the bank but beating the stock market's benchmark Hang Seng Index, which fell 8 per cent.4 Jul 2013 - 5:23am 1 comment
The Mandatory Provident Fund was launched in 2000 to address, in part, the challenge of financing the retirement of a quickly ageing population. Its net assets had reached HK$455 billion at the end of March and the annualised rate of return over the past 12 years has been 4 per cent.3 Jul 2013 - 4:52am 3 comments
While the move to allow switching of MPF funds was hailed as the scheme's most significant reform since its launch in 2000, only 64,000 employees have opted to do so since being granted that choice on November 1 last year.13 Jun 2013 - 6:20am 1 comment
Everyone likes a bargain. And if we extend this truism to the thorny issue of fees for our retirement schemes, then perhaps we should be thankful that our pension regulator is trying to bring in rules to lower MPF fees. But a closer look shows caution is required.11 Jun 2013 - 3:25am 1 comment
The Mandatory Provident Fund, which covers the city's 2.5 million employees, sank back into the red last month as Japanese and emerging-market stocks fell.
The 458 investment funds under the retirement scheme reported an average month-on-month loss of 0.87 per cent after a gain of 1.9 per cent in April, according to data provider Lipper.5 Jun 2013 - 4:05am