Changing jobs? How to consolidate your MPF preserved accounts

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

The post-Lunar New Year period is peak job-hopping season. More than a decade into MPF, serial job-changers may hold several preserved accounts — and rather than leaving them scattered across trustees, a job move is the ideal moment to consolidate them into one.

What is MPF account consolidation?

Consolidation means merging preserved accounts (also called personal accounts) scattered across trustees into one, so your savings are visible at a glance and easier to manage. The paperwork is simple: open a preserved account with your chosen scheme, submit a “Scheme Member’s Request for Fund Transfer Form” to the new trustee, and you will receive a transfer statement from the old trustee and a confirmation from the new one — check both carefully.

How do contribution accounts differ from preserved (personal) accounts?

A contribution account is tied to your current employer, whose scheme choice usually prevails; a preserved (personal) account holds past benefits and lets you pick the trustee and scheme to suit your retirement goals. Know the difference before reorganising your accounts.

What are the three options when you leave a job?

Your old employer notifies the trustee of your departure; if you give no instructions within three months, the trustee must move your benefits into a preserved account by law. Your options:

1. Transfer to a scheme of your choice — pick your preferred trustee and plan.
2. Keep it in the old scheme’s preserved account — but repeated job moves multiply accounts, so consolidate in good time to avoid over-diversification dragging on performance.
3. Move it into your new employer’s contribution account — simple to manage, but once transferred it cannot move again until you leave that job.

More on account types and transfers in the MPF education guides.