Hong Kong MPF administration fees down by 36% since launch of digital platform
More than 2.7 million members and 70,000 employers to be managed under new system by end of second phase of migration in August
But Mandatory Provident Fund Schemes Authority chairwoman Ayesha Macpherson Lau warned on Sunday that the next phase of migration onto the platform would be “very challenging”, as moving large volumes of data from the city’s four largest service providers would be complex.
The eMPF was launched on June 26 last year, the most significant reform of the city’s 25-year-old compulsory retirement scheme, to provide a centralised platform that would replace the separate systems used by 12 different operators.
Lau said administration fees had since declined.
“The fee charged by the eMPF is set at 37 basis points (0.37 per cent) currently, which is 36 per cent lower than the average of 58 basis points (0.58 per cent) charged by trustees before joining the eMPF, and will be further reduced gradually,” she said in a blog post.
Lau added that the “straight pass-on” requirement in MPF legislation ensured savings, estimated at a cumulative HK$30 billion to HK$40 billion over a 10-year period, directly benefited members of the scheme.