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Processing of contributions

Processing of contributions

Processing of contributions

The employer is required to:
  • make contributions;
  • submit a remittance statement to the trustee; and
  • provide a monthly pay-record to employees.

The trustee is required to:
  • collect contributions;
  • verify contribution amounts;
  • allocate contribution monies to constituent funds according to the member’s instruction;
  • notify the investment manager regarding the availability of contribution monies, so the investment manager can then carry out investment activities; and
  • update investment fund units to the member’s MPF account.

The employee:
  • accumulates constituent fund units through regular contributions.

The employer sends the MPF contribution, including both the employer's and employee's mandatory contributions, to the trustee, and gives you monthly pay-records containing the contribution information in accordance with the legislative requirements. (Note: if you are a self-employed person, you will remit your contribution either monthly or yearly to the trustee.)

The trustee, upon receiving the contribution, must verify the total contribution amount with the employer (or you as a self-employed person). There may be a time gap between the date that your contribution is remitted and the date your contribution is actually credited to your MPF account. After verification, the trustee will then allocate investments as per your instructions and pass the contribution monies for the investment managers to carry out investment activities.

Some MPF schemes may charge a fee on your contribution, though the majority currently waive this fee. The scale and amount of such fees are fully disclosed in the Fee Table in the MPF Scheme Brochure of the scheme.

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