The alliance of American International Assurance and Jardine Fleming (AIA-JF) has slashed the price of its Mandatory Provident Fund (MPF) plans before the December deadline for employers to sign up to a retirement scheme.
The alliance yesterday said it would cut the annual administration fee on its MPF plans to 1.85 per cent from 2 per cent, in exchange for employers accepting a smaller cash bonus for each new employee they sign up.
The reduced fees will remain in place for at least the next three years.
By slashing charges, the alliance hopes to attract the large number of employers who have left it to the last minute to choose a pension scheme provider.
So far, only 20 per cent of the 300,000 Hong Kong employers obliged to sign up to an MPF plan by December 1 have done so.
The alliance has already signed up 200,000 employees to its MPF plan, giving it a 10 per cent share of the MPF market.
