MPF | South China Morning Post
  • Tue
  • Jan 27, 2015
  • Updated: 6:15am

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. 

Half the battle

Illustration: Emilio Rivera

Hongkongers love to complain about their Mandatory Provident Fund. The government launched the plan in 2000 to address citizens' retirement needs. It implemented a fully free-market solution, handing the fund management and administration to the private sector.

Monday, 5 November, 2012, 3:25am

MPF chief seems determined to be an enemy of the people

Diana Chan Tong Chee-Ching, Managing Director of Mandatory Provident Fund. Photo: Felix Wong

"The MPF was set up in a way that was employer based and it let 250,000 employers determine the providers in order to eliminate administrative burdens. To let all 2.4 million employees freely choose their providers and make it so they could transfer at any time would effectively change the whole structure of the MPF into an employee scheme."

4 Nov 2012 - 4:15am 4 comments

Battle on to lure Hong Kong MPF switchers

People queue for free ice creams at the ING van in Causeway Bay. The van was an MPF promotion for the bank. Photo: SCMP

Free ice cream, smartphone software applications and reduced fees are weapons the city's 19 Mandatory Provident Fund providers are using to lure HK$257.5 billion in workers' pension contributions.

1 Nov 2012 - 4:48am

Warning on unscrupulous MPF pitches

Kenneth Leung Kai-cheong

Hongkongers should guard against unscrupulous sales practices under the new scheme that allows people to choose their Mandatory Provident Fund service provider, a legislator warns.

Accountancy sector representative Kenneth Leung Kai-cheong said people needed to be on their guard as about 30,000 MPF agents tried to attract business under the new arrangement.

1 Nov 2012 - 4:48am

Little interest in MPF portability scheme, according to CTU survey

Many Hongkongers do not know about and are not interested in a new scheme to move their Mandatory Provident Fund contributions to a service provider of their choice, a survey found.

A study conducted this month by the Confederation of Trade Unions found that of 454 workers polled, 21 per cent had never heard of the new MPF semi-portability plan.

31 Oct 2012 - 3:19am 1 comment

MPF changes first step on road to reforms

Hong Kong employees will get the right to choose where they want to invest some of their pension funds from tomorrow. Photo: Bloomberg

From tomorrow, the city's 2.4 million workers will be free to choose their own Mandatory Provident Fund provider, giving them a much-needed say where their nest egg is invested.

But complaints over the fees charged by providers, who were previously chosen by employers, are expected to continue, and may be the harbinger of further changes to the 12-year-old pension scheme.

31 Oct 2012 - 2:53am

Poor bond market to blame for tepid MPF, says Professional Commons

Mandatory Provident Fund investment losses can be blamed at least partly on the city's immature bond market, which drives investment agents to buy into risky stocks, according to a think-tank.

A Professional Commons' report released yesterday said heavy reliance on stock investments was risky due to market volatility in recent years.

29 Oct 2012 - 6:37am 1 comment

Letters to the Editor, October 26, 2012

Low-rise Ho Chung village, in Sai Kung. Photo: Edward Wong

Work together to keep HK a world city

I refer to Rachel Chan's letter ("HK should be trying to attract top-class international experts", October 24) concerning Hong Kong's international status.

26 Oct 2012 - 2:10am

Cap on MPF fees not ruled out, says financial services minister

Chan Ka-keung. Photo: Felix Wong

Capping the management fees for Mandatory Provident Fund retirement accounts has not been ruled out, the financial services minister said yesterday.

25 Oct 2012 - 4:24am

People know best what to do with their own money

MPF has rather eaten away at the retirement savings that people would otherwise have generated for themselves.

The Mandatory Provident Fund is a good thing because it forces very low income groups to save money, which they otherwise might not do.

Letter to the editor,October 21

23 Oct 2012 - 4:19am 3 comments

Pensions need a longer view

In a rapidly ageing society, the problem of inadequate retirement savings and the lack of a decent safety net needs to be addressed to avoid a crisis. Photo: Sam Tsang

Successive governments have ruled out a universal retirement pension. But recent events have revived the issue. One is the threat by some political parties to oppose funding for a boosted old-age allowance unless the government drops its plan to means test it.

22 Oct 2012 - 2:52am

Smart Money: MPF websites you should know

Smart Money: MPF websites you should know

sfc.hk and mpfa.org.hk

22 Oct 2012 - 1:54am

Warning over public trust role for Hong Kong's retirement scheme

Anna Wu says there needs to be other policies on retirement.

The regulator of the Mandatory Provident Fund scheme is warning of problems if the government steps in to administer workers' retirement savings.

21 Oct 2012 - 4:19am 2 comments

Fund provident in name but certainly not in practice

Managing director Diana Chan said that when the MPF started 12 years ago, fees were high because the fund was small. Photo: Felix Wong

"Hong Kong is a free market. However, if free market competition pressure cannot bring fees down we have to consider adding a cap."

Diana Chan Tong Chee-ching, MPF Schemes Authority, SCMP, October 19

21 Oct 2012 - 1:39am 3 comments

Letters to the Editor, October 21, 2012

Mandatory Provident Fund leaflet.

Old and new MPF set-up impractical

The Mandatory Provident Fund is a good thing, because it forces very low-income groups to save money, which they otherwise might not do.

Even though the actuaries will argue that the savings are quite inadequate to meet retirement needs, the MPF is nonetheless a step in the right direction.

21 Oct 2012 - 1:39am