Employee Choice Arrangement at Risk of Winter-2012 Delay: Three Hurdles for MPF “Semi-Portability”

Workers had long awaited MPF’s “semi-portability” — the Employee Choice Arrangement — originally hoped for mid-2012. But on 30 November 2011, industry word arrived that the scheme might not launch until the fourth quarter of 2012. Between hope and disappointment stood three roadblocks.

When would MPF’s Employee Choice Arrangement actually launch?

The Employee Choice Arrangement, hoped to launch in mid-2012, might slip to the fourth quarter of 2012, industry sources said in late November 2011. Three hurdles stood in the way: possible LegCo committee scrutiny of the bill, repeated testing of the new central transfer platform, and regulator approval of promotional leaflets. The MPFA still targeted the second half of 2012.

The three roadblocks, one by one

1. Legislation: LegCo might set up a dedicated bills committee, and clause-by-clause scrutiny takes time — whether it could pass before the summer recess was an open question.
2. Transition: Over the past year the MPFA had been stress-testing the newly built central platform with the industry to make sure no money went astray — a shakedown period that couldn’t be skipped.
3. Promotional approval: Brand-new leaflets had to clear the regulator before distribution — another gate to pass.

The MPFA’s line

An MPFA spokesman said it met trustees regularly on MPF developments and that both sides had begun preparatory work; once the law passed, final-stage preparations would take several months. In other words, the timetable hinged on legislative progress — and both the industry and workers needed to brace themselves.

Updates on the Employee Choice Arrangement are covered at the MPF education hub.