Contributions Switchable Once a Year — Employer’s Share Stays Put

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

MPF semi-portability isn’t unlimited switching. The Employee Choice Arrangement effective 1 November 2012 was clear: your own contributions move once a year; the employer’s share doesn’t move at all. Lesson one of MPF transfers: know what can move and what can’t.

What can move?

Your contributions — once a year. Each year, members may transfer the accrued benefits of their own contributions in one go to a scheme of their choice. Note: once a year, not at will; after switching, you wait another year.

What can’t?

The employer’s share — untouched. Accrued benefits from employer contributions stay in the employer’s chosen scheme. That’s the “semi” in semi-portability — full portability would move the employer’s share too.

Do new contributions follow automatically?

No — they’re separate. Monthly new contributions keep going to the employer’s scheme; only already-accrued benefits transfer. Want new money in your chosen scheme too? Not under semi-portability — it moves old money only.

What’s the blackout period?

Six to eight weeks — market risk is yours. Transfers take 6–8 weeks during which your money sits out: markets rise, you miss it; markets fall, you can’t dodge it. The buy-high-sell-low risk needs weighing before you switch.

What is the lesson from 2012?

Half a reform still needs full understanding. The 2012 rules were plain: once a year, your share only, old money only. Know the rules before you move — MPF transfers aren’t better the more you switch, but the better you switch.