Employees in Hong Kong can decide on their own MPF pension investment portfolio
I refer to Jake van der Kamp’s column (“Why won’t Hong Kong’s government let us take back our MPF?” April 12).
We would like to point out that, while it is the responsibility for the employer to choose at least one Mandatory Provident Fund (MPF) scheme for his employees, it is the employee’s responsibility, as well as his right, to choose the funds under the scheme and to decide on his own investment portfolio.
It is also important to know that about 70 per cent of the MPF assets, or about HK$450 billion as at December 31, 2016, is now transferable.
First, scheme members can move part or all of their assets in their MPF personal accounts to any other MPF schemes if they see fit. There are now about 5.4 million MPF personal accounts with total assets of HK$279 billion, which are freely transferable anytime.
Second, if they are employees, they can also exercise their right under the Employee Choice Arrangement (ECA) and transfer the benefits arising from their own contributions in their contribution accounts to a scheme of their choice once every year. There are now about 3.9 million MPF contribution accounts in which HK$170 billion of assets are transferable under the ECA.
The MPF is an important part of the working population’s retirement savings.
We urge all scheme members to take good care of their MPF – regularly reviewing their investment portfolios, providing trustees with their current correspondence address, consolidating their MPF accounts if there are too many, and paying attention to the latest development of the MPF system.
The MPF market will surely be more competitive if members play a more active role in managing their MPF. The MPF Authority will do its best to facilitate members to do so.
Cheng Yan-chee, chief corporate affairs officer and executive director, Mandatory Provident Fund Schemes Authority