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MPFA launches campaign to encourage consolidation of MPF personal accounts

The Mandatory Provident Fund Schemes Authority (MPFA) today (25 September) launched a four-pronged campaign to encourage scheme members to consolidate their MPF personal accounts and to remind them to avoid creating new ones.
 
Ms Alice Law, Chief Operating Officer of the MPFA said, “Many people think that managing their MPF is only about regularly reviewing fund performance or changing investment portfolios. In fact, consolidating their personal accounts is part and parcel of account management. The more personal accounts they hold, the more spread out their investments will be, and the more time and energy they will have to spend on managing them.”
 
Ms Law pointed out that if scheme members who have left their jobs do not give instructions to their trustees on how to handle their MPF in the contribution accounts of their former employment, the trustees are required by law to open a personal account for them and transfer the MPF in the contribution accounts to their personal accounts.
 
“The number of MPF personal accounts has increased 84% in six years, from 2.45 million as at end August 2007 to 4.52 million as at end August 2013. The number of scheme members holding four or more personal accounts jumped more than three times, from 53,000 to over 180,000 during the same period. We believe the sharp increase in the number of personal accounts is attributed mainly to scheme members changing jobs without managing their MPF,” Ms Law added.
 
“The MPFA recommends scheme members to hold just one personal account. If they have multiple personal accounts, they should consider consolidating them for easier management of their MPF,” said Ms Law. 
 
The campaign, which kicked off today, includes the following:

1. Launching a brand new application form – “Scheme Members' Request for Account Consolidation Form (Form MPF(S)-P(C)) – specifically designed for consolidating all personal accounts into one in one go. The form has only two pages for scheme members to fill in. One of the pages is a list of all MPF schemes, which is like a “dim sum” order form, facilitating members to choose the schemes for the personal accounts they would like to consolidate.

2. Sending letters to about 180,000 scheme members who hold four or more personal accounts to encourage them to consolidate their accounts. The letters, which are being sent in batches, will contain a personal account consolidation form, the member’s “Report of Personal Account”, the leaflet “How to consolidate MPF Personal Accounts” and a list of all MPF trustees’ hotlines and addresses. The report shows the number of personal accounts the member holds, as well as the name and hotline number of the trustee with whom each account is held.

3. Urging MPF trustees and intermediaries to co-operate and to assist scheme members in the consolidation process. The trustees have contacted or will contact their clients who have more than one personal account in the same scheme to encourage them to consolidate their accounts. They have also been called upon to provide all necessary assistance to scheme members who wish to consolidate their personal accounts.

To dissuade scheme members from creating new personal accounts, the trustees will also add an MPFA reminder to the letters sent to employees leaving their current employment, reminding them not to forget their MPF benefits and to consider consolidating their personal accounts into one. The letters will include the flyer produced by the MPFA carrying the same message and featuring a comic strip of the popular cartoon character “Maggiology”.

4. Providing face-to-face on-site service to scheme members in various districts. The service will include checking the number and whereabouts of personal accounts and answering questions about account consolidation.

The MPFA has also written to all District Council members and approached labour unions, employer associations and others to invite them to join hands with the MPFA to provide the service to the community or members of their groups. The service will also be made available at events organized by the MPFA, like roving exhibitions, to members of the public.

These efforts will be supported by a series of advertisements to raise scheme members’ awareness of the benefits of, and procedure for, consolidating their personal accounts. The advertisements will be placed in newspapers, on local TV and radio channels, on TV screens in trains and buses, and on websites and smartphone applications in the coming months.
 
Ms Law added, “The MPF is an important part of one’s retirement savings. We hope scheme members will actively manage their MPF. It is time for those holding multiple MPF personal accounts to take action.”
 
The consolidation form and the leaflet “How to consolidate MPF Personal Accounts” are available on the MPFA website. Members of the public are also welcome to call the MFPA hotline at 2918 0102 for enquiries on account consolidation or other MPF-related matters.
 
- Ends -
 
25 September 2013

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Last Review Date: 01/11/2013