Changing jobs after the Lunar New Year? Don’t forget your MPF

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

The post-Lunar New Year period is prime job-switching season — and when you clear your desk, remember to take your MPF with you. Once you leave an employer, the accrued benefits in their scheme become a preserved (personal) account. Ignore them and they simply pile up; there are three ways to deal with them.

What happens to my MPF when I change jobs?

When you change jobs, you can move your accrued benefits by (1) keeping them in a preserved account under your old scheme, (2) transferring them to your new employer’s MPF scheme, or (3) moving them to a scheme of your own choice. Whichever you pick, double-check your old scheme’s member number and your signature on the forms — those two details cause most delays.

The three options in detail

1. Stay with the old scheme. If you still like your former employer’s MPF scheme, open a preserved account under it and move your accrued benefits there — usually just a matter of completing a member termination notice. If you give the trustee no instructions, your benefits are automatically moved to a preserved account under the old scheme after 90 days.

2. Transfer to your new employer’s scheme. Found a new job? You can shift your old accrued benefits into the new employer’s scheme with a fund transfer form. Note, though, that the law gives employers up to 60 days from your start date to enrol you, so it is best to submit the transfer form when that enrolment happens, to avoid confusion.

3. Transfer to a scheme of your choice. Even before “semi-portability” arrived, changing jobs was one of the few chances to pick your own scheme. Submit a preserved-account member application and a fund transfer form to your preferred trustee.

Two classic form-filling pitfalls

With options two and three, the commonest snag is the old scheme’s member number: some providers change it when your member type changes, so confirm it with the original provider or check your latest benefit statement. The other is a mismatched signature — use the one you normally sign with on all MPF documents.

To compare trustees’ schemes and fees before you choose, see the MPF education guides.