What to do with your MPF when you change your job?

December 26th, 2018. 06:11 pm

In this day and age, it is quite common to change your job every now and then.  Typically, when you begin your new job, your new employer will give you a new application form to set up a new MPF account with the employer’s choice of fund provider. All you have to do is to fill in the information that is required, pick a scheme that fits you, sign the form and return it to your new employee. But do not forget to come up with a good arrangement for the MPFs from your old job.


There are three ways to handle the accrued benefits from your previous job:

  1. transfer your accrued benefits to your contribution account under the MPF scheme of your new employer. All you need to do is to fill in a “Scheme Member’s Request for Fund Transfer Form” provided by the trustee of the MPF scheme of the new employer.
  2. leave your accrued benefits under the scheme of your old job. You can fill in the “Scheme Member’s Request for Fund Transfer Form” and return it to your original trustee, who will open a personal account for you and transfer the accrued benefits to that account. If the trustee does not receive instruction from you within 3 months after receiving the notice of your employment cessation from your former employer, your accrued benefits will be automatically transferred to a personal account under the original scheme as required by law, where they will continue to be invested.
  3. transfer your accrued benefits to a personal account under the scheme of your choice. Request from the trustee of the scheme a “Scheme Member’s Request for Fund Transfer Form”, fill it out and return it to the trustee. If you do not as yet have a personal account with the scheme, you have to submit a “Personal Account Holder Application Form”.




To consolidate or not to consolidate?


How many personal accounts should one hold?  There is no standard answer.  Whether or not to consolidate personal accounts is often a personal choice. However, for most employees, the simpler their MPF portfolio is, the better it is for them.  If you end up with multiple personal accounts, they might make it difficult for you to manage your retirement investments. There are many advantages to consolidating your personal accounts: your MPF benefits will be handled by the same provider and you will not be lost in the benefit statements, Fund Fact Sheets, updates on scheme information and other promotional materials from different personal accounts. This will allow you to get a better handle of your assets. One of the best ways to achieve easier account management is to hold just one personal account.