Employee Choice Arrangement Q&A: how often? Can employer contributions move?

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

The Employee Choice Arrangement (“MPF semi-free choice”) launched on 1 November 2012. The MPFA spent weeks explaining the details; here are the most common questions and answers:

Is there a limit on transfer frequency?

Once a year, all in one go. Employees may transfer once between 1 January and 31 December each year, moving the full amount to a single trustee — no splitting across instalments or accounts.

Can my current employer’s contributions be transferred?

No. Only the employee portion’s accrued benefits may move; the employer portion is excluded.

After switching, will my employer pay into the new trustee?

No. “Semi-free choice” doesn’t change your employer’s future contributions: whether or not you exercise the right, your employer keeps paying both portions to the original trustee (the employer’s choice) each pay cycle — not your chosen trustee.

If I switch in November, when can I switch again?

Next calendar year. The right may be exercised once per calendar year. Switch this November, and you may exercise the 2013 right any time on or after 1 January 2013.

Must old money previously moved into my current account move too?

No. The two pools of accrued benefits can be handled separately — no need to move them together or to the same trustee and scheme.

Must my employer arrange it?

No. Contact your chosen new trustee directly.

MPFA hotline: 2918 0102