Information Centre

FAQ

MPF System

Factors to consider in transferring MPF

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1. What factors should employees consider before transferring their MPF to another scheme?

Employees should consider carefully the following factors before transferring their MPF:

 

  • Product (scheme and fund)
    Whether fund choices are sufficient; whether the funds meet one's needs; fund features, risk level and performance of funds.
    (Please note: a scheme with more choices of fund products may not be the best one. Employees should choose a scheme with funds that can meet their personal needs. In addition, the past performance of an MPF fund can serve only as a reference; it may not reflect its future performance.)
  • Services
    Are the channels provided by the trustee for checking account information convenient and diversified? Does the trustee handle the switch of funds quickly and efficiently? How many free benefit statements are issued to scheme members every year? How many times can scheme members switch funds free of charge every year?
  • Fees and charges
    Should compare with funds of the same type.
  • Personal factors
    Personal investment objectives; current stage in life (including years to retirement); and risk tolerance level and other savings for retirement etc.

 

Important note:
If an employee is currently investing in an MPF guaranteed fund, a transfer of the MPF out of that fund may result in some or all of the guarantee conditions not being satisfied, thus affecting the employee’s entitlement to the guarantee. Please check the MPF Scheme Brochure of the original scheme or consult the trustee of the Original Scheme for details about the guarantee conditions.

 

For more information:
Employees can make use of the MPFA’s investment education publications, to enhance their understanding of MPF investments. They should also read the information provided by trustees, including MPF Scheme Brochure, fund fact sheets, etc. If in doubt, they should ask the trustee or intermediary to obtain information on specific schemes or funds.

2. If an employee holds a guaranteed fund in his or her investment portfolio, will the transfer of MPF affect the guaranteed return?
If an employee is currently investing in a guaranteed fund, he or she should check whether the transfer would violate certain guarantee conditions, such as the minimum lock-in period, thus disqualifying him or her from entitlement to the relevant guarantee. The employee should check the MPF Scheme Brochure of the scheme selected by the employer (Original Scheme) or consult the trustee of the Original Scheme for details.
3. How can employees obtain service information about the different MPF schemes?
Employees can directly approach the trustees of the schemes to obtain the relevant information. They can find the MPF schemes related information from the Repository of Scheme Documents on MPFA website. Also, they can make use of the "Trustee Service Comparative Platform" on the MPFA website to compare the key service attributes of all MPF trustees.
4. How can employees compare the fees and charges of different MPF schemes?
Employees can make use of the "MPF Fund Platform" on the MPFA website to compare the fees and charges of MPF funds. They should also check the most recent information available from the trustees or sponsors before making their final investment decision.
5. When employees transfer their MPF to another MPF schemes, do the trustees levy an administration fee, service charge, or transaction fee?
When employees transfer their MPF to another MPF schemes, the trustees should not levy any charge (including administration fee, service charge, etc.).
6. After employees have transferred their MPF to a scheme of their own choice (New Scheme), will they need to pay double the amount of fund management fees since they are simultaneously enrolled in the scheme selected by employers (Original Scheme) and New Scheme?
No. Fund management fees are usually calculated as a percentage of the net asset value of a fund, not as a specific amount. Even if an employee is simultaneously enrolled in the Original Scheme and a New Scheme, the management fees charged will still be calculated as a percentage of the net asset value of the funds that he or she holds.
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