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.
Here's the good news and the bad news. As of last week employees can benefit from the new Mandatory Provident Fund Employee Choice Arrangement scheme. The bad news is that the choice will be limited in a most surprising way.Monday, 5 November, 2012, 3:25am
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.5 Nov 2012 - 3:25am
"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
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
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
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
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
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
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
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