Budget injects HK$6,000 into 3 million workers’ MPF accounts; trustees mull rebate perks

The Financial Secretary’s HK$6,000 injection into the MPF or retirement-plan accounts of over three million workers is an instant windfall for MPF trustees, who stand to collect over HK$200 million from management fees and investment returns. Hong Kong Trustees’ Association vice-chairman Lau Ka-shi said the industry has agreed to consider perks for the HK$6,000 injection, such as bonus rebates; HSBC said it will waive first-year investment fees on the injection.

Who gets the HK$6,000?

Anyone holding an MPF or ORSO account the day before — everyone qualifies. The Budget proposes that anyone holding an MPF account or an Occupational Retirement Scheme (ORSO) account the day before announcement gets HK$6,000 per person, regardless of income or employment status, as long as the account is kept. Even workers with multiple accounts from job changes get just one HK$6,000 — the MPFA will verify identities with trustees using ID numbers so nobody gets double-paid or mis-paid.

How did trustees respond?

Rebates under consideration; HSBC waives first-year fees. The MPFA briefed 19 trustee companies yesterday afternoon; the industry agreed to respond positively to public concerns over management fees and is considering perks for the HK$6,000 injection such as bonus rebates — though specifics are for each company to decide. HSBC will waive fees arising from investing the injection in the first year. MPF Schemes Advisory Committee member Chan Kin-por said competition has grown over the years and overall management fees should have room to fall further.

To see how the HK$6,000 could be invested for growth, visit MPF fund comparison.