Don’t switch MPF trustees blindly: weigh service, fees and fund range

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

Era context: The original was short — the MPFA’s routine plea two months before launch: don’t switch for switching’s sake. In September 2012, while writing to every employer and distributing posters, the authority kept repeating the four factors. Amid rising expectations of a switching wave, the “stay calm” message was deliberate cooling.

With the Employee Choice Arrangement launching in November, the MPFA said it would write to all Hong Kong employers and distribute posters, while urging employees not to switch trustees blindly.

What should you consider before switching?

The MPFA’s senior liaison manager said employees should weigh:

• The provider’s service
• Fees
• Fund range
• Personal factors

Never switch just to switch. He hoped the scheme would widen choice, sharpen competition, improve product quality and bring fees down. A trustee service comparison platform was also in the pipeline as the authority kept improving the system.