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MPFA welcomes the 2026-27 Budget announced today (25 February) by Financial Secretary Mr Paul Chan, which includes various proposed measures to further enhance the MPF System. 

MPFA Chairman Mrs Ayesha Macpherson Lau welcomed various measures proposed in the Budget that help sustain Hong Kong’s economic growth momentum and promote the city’s robust development of the financial sector. She also welcomed the Government’s acceptance of the MPFA’s recommendations, including enhancing MPFA’s process of recovering default MPF contributions, and enhancing the flexibility of MPF trustees and relevant service providers in managing investment of MPF funds.

She said, “MPFA has been committed to safeguarding employees’ MPF benefits. Through introducing a two-tier (i.e. the existing level and a new additional level) surcharge arrangement to drive non-compliant employers to promptly settle default contributions and surcharges, the proposed measures would enhance the effectiveness of MPFA’s process on recovery of default MPF contributions.  Meanwhile, we will enhance industry’s flexibility in managing investment of MPF funds, including more flexible fund structures and expansion of arrangements for delegation of investment management functions, with an aim to enhance risk diversification for MPF funds and market competition to MPF scheme members’ benefit. We will consult stakeholders on relevant legislative proposals and render full support to the Government on its work plan to introduce an amendment bill, with a view to implementing the proposals as soon as possible.”

Mrs Lau supplemented that MPFA will continue to take forward a number of key initiatives, including implementing the Phase One Proposal of MPF “Full Portability”, supporting the Government’s work for introducing an amendment bill for the Phase Two Proposal of “Full Portability” in the first half of next year, completing the statutory review of the minimum and maximum relevant income levels for MPF mandatory contributions for the 2022-2026 cycle, completing a holistic review of the default investment strategy, and continuing to render full support to the Government’s financial policies to further enhance the MPF System. MPFA is committed to developing MPF into one of the world’s leading private pension systems, providing basic retirement protection for the working population. 

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25 February 2026