MPF System

Background

Why MPF?

Importance of MPF

As Hong Kong's population is ageing rapidly, the future workforce will have to face the challenge of having to support a much larger number of retirees.

Hong Kong Ageing Population

Source: Census and Statistics Department, HKSAR Government

Development of the MPF System


The MPF System is set up to help Hong Kong’s workforce save up for their retirement. It is an important part of Hong Kong’s retirement protection framework.

The Mandatory Provident Fund Schemes Ordinance (MPFSO) was enacted in 1995 and supplemented by subsidiary legislation in 1998, 1999 and 2000 respectively. The MPF System was launched in December 2000.

World Bank’s multi-pillar retirement protection framework

 

World Bank’s multi-pillar retirement protection framework

Source: Holzmann, R., & Hinz, R. (2005). Old age income support in the 21st century: An international perspective on pension systems and reform. Washington, DC: World Bank.

 

As the second pillar of Hong Kong’s retirement protection framework, MPF complements the other pillars1 and provides the workforce with basic retirement protection.

 

1 With the exception of Pillar 1 which is not applicable in Hong Kong.