Changed jobs and left MPF accounts scattered? Three ways to tidy them up

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

Many people change jobs — some young graduates switch several times within a few years of leaving school. Each move can leave behind another MPF preserved account. Have you ever thought about how to deal with them properly? Rather than letting them drift, consolidating them is the savvy move.

What does MPF account consolidation involve? Where do you start?

MPF account consolidation means bringing preserved accounts scattered across trustees under central management. The first step is finding out where your accounts are: if you cannot remember, bring your identity document to the MPFA’s office in person, or download an enquiry form from the MPFA website and post or fax it with the required documents to retrieve your trustees’ names and contact details.

What are the three options for handling old MPF accounts?

Once you have located every account, MPF consolidation offers three choices:

1. Transfer to a preferred scheme: move your accrued benefits to the MPF scheme you like best. First study what sets schemes apart — fund choices, investment objectives and fund fees — and pick the scheme and funds that suit you.
2. Leave them as they are: keep the accrued benefits in the existing accounts and let them stay invested. Even so, consider whether the fund or portfolio mix still fits your needs.
3. Transfer into your new employer’s contribution account: the upside is convenience — one account shows your whole MPF picture. But note that under the system then in force, once accrued benefits entered a new employer’s contribution account, they could not be freely transferred again until employment ended and the account became a preserved account.

What goes wrong if you ignore old accounts after a job change?

The biggest problem is not knowing how much you have or where it sits. The more scattered the accounts, the harder it is to see your overall asset allocation and fee burden — fund choices across accounts may overlap or carry mismatched risk. A periodic consolidation keeps the full retirement picture in view. Questions can go to the MPFA hotline 2918 0102, and the MPF education hub has further guidance.