Industry schemes attract five tenders
Five companies have submitted tenders to act as service providers for the Mandatory Provident Fund (MPF) catering and construction industry schemes.
Mandatory Provident Fund Schemes Authority (MPFA) chairman Charles Lee Yeh-kwong did not identify the companies, which submitted applications before Tuesday's deadline.
However a market source said the five bidders were: HSBC; Bank Consortium Trust, owned by a 10-bank union; Australia-based CMG Asia; Bank of East Asia; and mainland-based China Life.
Mr Lee said a decision on the choice of providers would be announced by March.
MPF industry schemes designed for catering and construction have high intra-industry labour mobility.
Under normal MPF plans, employees will have to switch their MPF scheme provider when they join a new company.
However, under the industry schemes for the catering and construction sectors, employees will be allowed to keep their plans when they change jobs in the same sector, in a bid to reduce the portability costs they incur.
CMG Asia director of marketing and operation Chan Kin-chung confirmed the insurer had joined the tender. The insurer's parent, Colonial, is one of the largest pension-providers in Australia, with a market share close to 40 per cent.
Bank Consortium Trust chairman Bernard Charnwut Chan also confirmed it had joined the tender.
He said the industry plans for the two sectors would cover up to 300,000 employees.
'The branch network of our 10 member banks would help to collect contribution from the employees of the two industries,' he said.
Mr Bernard Chan said not all MPF service providers would be interested in the industry plans as the cost of running them would be higher than normal schemes.