Did 380,000 ORSO Members Need a New MPF Account for the $6,000 Injection?

Why Did ORSO Members Have to Open an MPF Account?

In the 2011 Budget, the government set aside $24 billion to inject $6,000 into MPF accounts, but 380,000 occupational retirement scheme (ORSO) members had to open a separate MPF account to qualify. The MPFA confirmed trustees would contact employers to help staff open accounts, with details to follow.

Would Fees Eat the Injection Before It Arrived?

A financial planner warned that some trustees charged about $500 in first-registration fees, and small accounts faced relatively high management fees, so the $6,000 could be eroded. With a 2% annual management fee and 4% inflation, a fund would need 6% yearly returns for the injection to keep its purchasing power to retirement.

Which Trustees Waived Fees on the Injection?

HSBC said it would charge no first-year fees on the government’s $6,000 injection, Hang Seng followed, while Manulife had yet to decide. The MPFA welcomed the concessions and pledged to keep pressing trustees for broad fee cuts. Compare MPF funds to see what your account really costs.