ECA Delay Is Better Than No ECA: Learn to Choose Before You Switch

The MPF “semi-portability” scheme has been delayed again, but columnist Ching Kim-wai argues late is better than never. Once live, 2.2 million employees and 262,000 self-employed persons can freely choose their MPF trustee — but does everyone know how to choose?

Why is the delay actually good?

Intermediary conduct legislation needs to keep pace — don’t get scammed. MPF intermediaries vary wildly in quality, and some push products for commission. The government is using the delay to tighten intermediary conduct regulation through legislation — a genuine protection for workers. More choice without know-how is a trap waiting to spring.

What should you know before switching?

Compare fees, returns and fund choice — all three. Before moving MPF balances, compare trustees’ fund expense ratios, long-term performance and fund line-ups, plus service quality. Don’t just take an intermediary’s word — do your own homework. The MPFA’s “MPF Express” website has scheme and fund data all in one place, free and reliable.

What is the Employee Choice Arrangement?

The employee-contribution portion can move to a chosen trustee. Semi-portability lets employees transfer accrued benefits from their own contributions to a trustee scheme they select; the employer-contribution portion stays put. No employer consent is needed — it’s the worker’s own right.

To compare charges and returns across MPF funds, visit MPF fund comparison.