MPF Employee Choice Arrangement (ECA)

December 26th, 2018. 03:38 pm

On 1 November 2011, the MPF put into effect the Employee Choice Arrangement, whereby once in a calendar year, employees can choose to transfer the employee’s portion of mandatory contributions and its accrued benefits in their contribution accounts to an MPF scheme of their choice. Through this arrangement, employees enjoy a greater degree of control over their investment.


If you want to take advantage of ECA to transfer the employee’s portion of MPF benefits in your contribution account to the MPF trustee and scheme of your choice, you will have to follow these steps:


  1. During a calendar year (that is between 1 January and 31 December), only one transfer is allowed. However, once you have made a transfer, there is no need to wait for another 12 months – you can apply for another transfer any time during the next calendar year;


  1. A transfer must be made in one lump sum;


  1. The transfer process does not involve the employer. You can contact the trustee of your choice to arrange the transfer


After the employee makes the transfer, contributions (including the employer’s and the employee’s portion) will continue to be made to the schemes that the employer has chosen for their employees.  Moreover, the MPF benefits from the employer’s portion cannot be transferred by the employees under ECA.


ECA is voluntary by nature. It is not compulsory for you to change you MPF trustee and scheme, if you are happy with the performance and services of the current trustee.  If you decide to change, however, give due considerations to factors such the services, fees, and types of funds that the trustee/scheme provides.  Personal factors such as investment goals, risk tolerance level and your current stage of life should play a role in your decision, too.