Information Centre

FAQ

MPF System

Procedure for transferring MPF

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1. How do employees make a transfer request under Employee Choice Arrangement (ECA)?
Employees can submit their ECA transfer request through the eMPF Platform. Employers are not required to be involved in the process.
2. Why is there a time lag of one to two weeks during the transfer process for MPF?
During the transfer process, the trustee of the scheme selected by employers (Original Scheme) has to redeem the fund units from the employee's account and sends relevant amounts to trustee of the scheme of employees' own choice (New Scheme). The trustee of the New Scheme receives the amount and allocate to the constituent funds chosen by the employee. After the trustee of the Original Scheme has redeemed the funds and before the trustee of the New Scheme subscribes to the new funds, there will generally be a time lag of one to two weeks during which the MPF will not be invested in any fund. During this period, fund prices may change due to market fluctuations and there is a risk of a “sell low, buy high” scenario occurring. For instance, if the fund price is on an upward trend, your existing fund units in the Original Scheme may be sold at a low price level, while the new fund units in the New Scheme be bought at a relatively higher price. Employees should be mindful of this risk before making a transfer.
3. Can employees request their trustees to buy or sell fund units at a specified price?
No. Like the general fund investments, MPF funds are traded on a "forward pricing" basis, meaning that their execution price is calculated on the basis of their net asset value after the market closes on the relevant trading day. Therefore employees cannot specify the price of a fund when buying or selling fund units.
4. How do employees know that the process of transferring MPF has been completed?
On completion of the transfer, employees will receive the confirmation from the eMPF Platform that the MPF have been transferred to the scheme of the employee's own choice (New Schemes) so that the employees can check to ensure the transferred amount and the account details are accurate.
5. If an employee submits an ECA transfer instruction through the eMPF Platform at the end of the current year and the transfer process is not completed until the next year, will it count as exercising his or her transfer right this year or next year?
If the eMPF Platform receives an employee's ECA transfer instruction on or before 31 December this year and the information is correct, this will count as an exercise of the transfer right in the current year (even if the transfer process is not completed until the following year).

However, if employees plan to make a transfer close to the end of a year, they should allow enough processing time when submitting the instructions to avoid any delay arising from inadequate or wrong information. Otherwise, employees may lose the transfer right for that year.
6. How can an employee enquire about the status of a transfer process?
Employees should obtain this information via the eMPF Platform.
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