Contribution Account and Personal Account
There are two types of MPF account in the MPF System, namely contribution accounts and personal accounts.
A contribution account primarily receives MPF contributions attributable to a member’s current employment or current self-employment for investment.
A personal account primarily receives accrued benefits attributable to a member’s former employment or former self-employment transferred from other MPF accounts, and also accrued benefits attributable to a member’s current employment transferred from a contribution account for investment.
Members of MPF schemes can transfer their accrued benefits between MPF accounts with certain restrictions in accordance with the MPF legislation, detailed below.
The MPF contributions made by an employee and his/her current employer are held in a contribution account under the MPF scheme selected by the employer (i.e. the original scheme) for investment. When an employee changes jobs, he/she may treat the accrued benefits (i.e. the accumulated contributions and investment returns) held in the contribution account under the original scheme in one of the following ways:
- Transfer the accrued benefits from the contribution account in the original scheme to a personal account in any other master trust scheme or Industry Scheme held by the employee; or
- Transfer the accrued benefits from the contribution account in the original scheme to the contribution account in the scheme of the new employer.
Alternatively, if the employee is satisfied with the original scheme, then the employee could retain the accrued benefits in a personal account under the original scheme (this option does not apply to members of employer sponsored schemes upon their changing employment).
Following the implementation of the Employee Choice Arrangement on 1 November 2012, an employee may also opt to transfer the accrued benefits derived from the employee’s portion of mandatory contributions attributable to current employment to any other master trust scheme or Industry Scheme of his/her choice once a year. Details of the arrangement can be found here
An employee can transfer his/her accrued benefits held in a personal account to any other MPF scheme of his/her choice at any time.
Self-employed persons can transfer the accrued benefits held in their MPF contribution account or personal account to any other MPF scheme of their choice at any time.