Before semi-portability takes effect: work out whether to switch trustees

This article is a rewrite of a report from August 2012.

MPF semi-portability took effect in November, giving workers a new option: moving their own contributions to a preferred scheme. Switch or not? Answer these three questions first.

Which contributions can move?

Only your own 5%. The employer’s share stays in the original scheme — returns generated on it are not yours to move either.

What should you compare?

Fees, fund choice, service — all three. Do not chase adverts’ sweeteners — cash rebates are one-off; management fees and fund expense ratios are what shape long-term returns.

When should you not switch?

When you do not know what you want. Too much trouble, satisfied as is, could not compare — the survey’s top reasons for staying put. Until you are clear, standing pat beats fidgeting.