Changed jobs and left a trail of MPF accounts? Three ways to tidy up

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

A nephew visiting relatives for Lunar New Year learned his uncle was changing jobs — and had accumulated eight MPF preserved accounts with different trustees, buried in paperwork. There are just three ways to deal with them.

What can members do with their MPF preserved accounts?

A preserved account — what a contribution account becomes after you leave a job — can be handled three ways: transfer the accrued benefits to a scheme of your choice, leave them where they are to keep growing, or merge them into your new employer’s contribution account. The right choice depends on the fund range, fees and service you want.

Option one: transfer to a preferred scheme

Compare schemes’ fund choices, investment objectives and fees against your risk appetite and asset-allocation needs. Then complete the Scheme Member’s Request for Fund Transfer Form with the required proof documents and submit it to your chosen scheme’s trustee. The MPFA (hotline: 2918 0102) can point you to details.

Option two: leave it alone

If you are happy with the existing trustee’s service and fund range, you can simply leave the account to keep growing — but still review the portfolio periodically to check it suits your current needs.

Option three: merge into the new employer’s account

Moving benefits into the new employer’s contribution account means one statement shows your whole MPF picture. One caveat under the rules then in force: once benefits entered a contribution account, they could not be moved again until the next job change turned it back into a preserved account.

None of the three is universally best — the mistake is leaving scattered accounts unmanaged. More on account transfers: MPF education resources.