Latest news with #MandatoryProvidentFundSchemesAuthority
The Standard
21-04-2025
- Business
- The Standard
'Full portability' of employees' MPF contributions on the horizon
The Mandatory Provident Fund Schemes Authority will finalize its proposal on MPF full portability and submit it to the government, following the conclusion of a recent consultation, to give employees greater autonomy in managing their retirement savings, says chairwoman Ayesha MacPherson Lau. Lau, in a blog post, said initial feedback from the consultation, launched on March 28, included calls for the MPFA to further clarify the details of the full portability arrangement ahead of its implementation. Lau pointed out that after the Employee Choice Arrangement – commonly known as 'semi-portability' – was introduced in 2012, employees could transfer the entire amount of employee mandatory contributions in their contribution accounts from their employers' MPF schemes to a scheme of their choice once a year, thereby enabling them to select an MPF scheme that better suits their investment needs. Between 2020 and 2024, an average of HK$4.8 billion was transferred annually, up 27 percent from the HK$3.8 billion average in the preceding five years, Lau said. "As of March 2025, the cumulative value of such transfers surpassed HK$50 billion across more than one million transactions."
RTHK
21-04-2025
- Business
- RTHK
Workers set to get more say in managing MPF funds
Workers set to get more say in managing MPF funds The Mandatory Provident Fund Schemes Authority believes it is time to give employees full control over where their savings should be kept. File photo: RTHK The body which manages retirement savings for the city's workers says that over HK$50 billion of contributions have been transferred under an arrangement which gives employees more say on how to manage their mandatory provident fund (MPF). The Mandatory Provident Fund Schemes Authority (MPFA) added it is now inviting public views on how to make it even more flexible for people to switch between scheme providers. In an article published on Monday, MPFA chairman Ayesha Lau described 2025 as a pivotal year for Hong Kong's MPF system. First, an electronic MPF platform will be fully implemented by the end of the year, making it easier for workers to manage their portfolios. An offsetting mechanism which allows employers to settle severance or long service payments using employees' savings will also be abolished in May, nearly three years after a law amendment was passed. Finally, the MPFA is also looking to build on the success of the so-called 'semi-portability' arrangement. Officially known as the Employee Choice Arrangement, it enables workers to move their employee mandatory contributions to a different scheme provider once a year. Lau said the scheme facilitated over one million transfers since 2012, totalling over HK$50 billion. An average of HK$4.8 billion was transferred each year between 2020 and 2024, 27 percent more than the annual average in the previous five-year period. The MPFA is now hoping to expand the scheme so workers can also transfer their employers' contributions, an arrangement known as 'full portability'. A one-month public consultation is under way and people can submit their views by next Monday.
RTHK
21-04-2025
- Business
- RTHK
Workers set to get more say in managing MPF funds
Workers set to get more say in managing MPF funds The Mandatory Provident Fund Schemes Authority believes it is time to give employees full control over where their savings should be kept. File photo: RTHK The body which manages retirement savings for the city's workers says that over HK$50 billion of contributions have been transferred under an arrangement which gives employees more say on how to manage their mandatory provident fund (MPF). The Mandatory Provident Fund Schemes Authority (MPFA) added it is now inviting public views on how to make it even more flexible for people to switch between scheme providers. In an article published on the authority's website, MPFA chairman Ayesha Lau described 2025 as a pivotal year for Hong Kong's MPF system. First, an electronic MPF platform will be fully implemented by the end of the year, making it easier for workers to manage their portfolios. An offsetting mechanism which allows employers to settle severance or long service payments using employees' savings will also be abolished in May, nearly three years after a law amendment was passed. Finally, the MPFA is also looking to build on the success of the so-called 'semi-portability' arrangement. Officially known as the Employee Choice Arrangement, it allows workers to move their employee mandatory contributions to a different scheme provider once a year. Lau said the scheme facilitated over one million transfers since 2012, totaling over HK$50 billion. An average of HK$4.8 billion was transferred each year between 2020 and 2024, 27 percent more than the annual average in the previous five-year period. The MPFA is now hoping to expand the scheme so workers can also transfer their employers' contributions, an arrangement known as 'full portability'. A one-month public consultation is under way and people can submit their views by next Monday.
